Real Estate Watch: Using your retirement plan to invest

What are you doing with your Roth, IRA, 401K, etc.?  

If you want to earn 3 percent per annum to 100 percent plus over the long run, then read on.

You say impossible, I say not only possible, but probable, considering the current market trends, historic low interest rates, outrageous demand and the lowest inventories in over a decade and lastly my fairly solid predictions!

Get the biggest bang for your buck  and plan to purchase rental properties with your 401K, Roth, I.R.A. or any self directed retirement plan and create a financially sound  and fruitful future.  

Depending on, what I call “Social Insecurity” maybe why one should consider this investing path for now and the foreseeable future.  

Especially, if you are a millennial or Generator Xer or even a baby boomer and hadn’t put enough into your Social Security account over the long run.  

Yes, you can buy real estate in your retirement plan.  

Question is, how do you do it?

If you compare, real estate, stocks and bonds, precious metals, antiques, coins or stamps; real estate has provided the best return on investment for the last 100 years and more, hands down, unless you are a professional stock or day trader (you can count a very minuscule minority in that group).  

Keep in mind, when President George Washington was President, the typical price of a home was from $1,000-$3,000!  

Cheap, eh? 

I’ll would take a few dozen of those homes, wouldn’t you?  

But today, that same home is now worth $1 million-$3 million! 

Yes, I said $1 million to $3 million.

Compounding appreciation and the price per square foot for  the land and constructing a home over time is the number one reason with respect to real estate and investing. 

Oh yeah, but today, mostly importantly, I say, it is truly, location, location and school district.

Due to the lack of supply, lack of building permits from 2007-2011, builders held back, buyers left the market, economy in the dumps and difficulty borrowing money and difficulty getting approval for mortgages, things came to a standstill.  Since the bottom in 2011, each year, the market had slowly but surely improved.  

Until today,  with exceptional intense and fever pitched demand,  is causing prices to increase 3-5 percent plus year over year.  

However, even Warren Buffet has said “There is no Bubble in the real estate market” in sight and will not cause the next downturn. 

So, although four years ago would have been ideal to begin, it is still not too late to purchase and invest for your future, realizing how an amazing moment in time it is and how favorable the variables are, as long as you are very careful, as you would be putting your self directed IRA’s into any investment.  

Constant updating of your knowledge equals the road to a great return on your investments!

Self Directed IRAs:

I quote from the following:

“In order to invest using a self-directed IRA, the IRA must be held with a qualified trustee or custodian. Generally these trustees provide administrative services, such as maintaining records of contributions and other activity, filing required IRS reports, issuing client statements and providing information pertaining to the rules and regulations that govern IRAs (for example, the contribution limits and deductibility rules, the rules for distributions and the penalties for early distributions).”

It would advise anyone who wants to pursue this excellent strategy, to first speak with your financial planner or if you do not have one, we have several knowledgeable and licensed Experts).  

Then you will need a credible, knowledgeable and trustworthy real estate broker to guide you through the process of finding rental properties that will fit your specific “needs and wants” with respect to your self directed retirement plan.  I could go on for many more pages.


Philip A. Raices is the owner of Turn Key Real Estate in Great Neck. He can be reached by email: [email protected] or by Cell, (516) 647-4289 to answer any of your questions.   To search for property, see what your home is worth or homes that have sold in your area, go to:  WWW.Li-RealEstate.Com   If you desire a Free No Obligation CMA (Comparative Market Analysis) for the value of your home, call me.

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