Using a Self Directed IRA to invest in the Foreclosure Market
Any news report will alert you to the fact the home foreclosures are on the rise. If you have untapped funds just sitting in your Self-Directed IRA LLC account, now is a great time to invest in foreclosures. Following are three reasons why.
3 Reasons Now is a Great Time to Invest in the Foreclosure Market
Buy Low/Sell High: If you’re looking for the proverbial good deal, now is the best time to find one. Good deals, or buying a property with enough equity to sell it for a profit, are plentiful right now. So, one of the most difficult parts of making money in foreclosures is taken care of.
As adjustable rate mortgages adjust up, the economy worsens and more people lose jobs, homeowners become more willing to negotiate. This means the elusive good deal is easier to come by.
Banks Don’t Want to Be Property Mangers: Banks are not in the business of managing property. They want homeowners to do that. So, as they become inundated with more and more foreclosures, they’re doing everything they can to sell them as fast as possible. Why don’t’ banks want to be landlords?
Because they usually wind up losing money - in two different ways. First, there’s nobody paying the mortgage when house is sitting empty. This cost banks. Secondly, when a house is in foreclosure, the bank is responsible for keeping it up until it sells. This means hiring contractors to mow the lawn, fix broken windows, clean up and haul away traffic from previous owners, etc. So, they’re quite eager to sell, sell, sell.
Long-Term Gain: Using your Self-Directed IRA LLC / Checkbook IRA account funds to purchase foreclosures now will pay off in the long run. Especially if you buy and hold properties. Real estate is a cyclical market. Meaning, what goes down will eventually go up again. When the market starts to sizzle again, you’ll be perfectly situated to take advantage of the smart investments you make now.
