Many firms offering IRAs invest your money in what they deem as "safe" investments, such as mutual funds and CDs.
These firms have a vested interest in these mutual funds or CDs, and hence use your IRA to enhance their interest.
But you do not have to accept these subpar returns on your IRA.
You should look for a self directed IRA, where you get to choose how the money is invested.
You may be hesitant and feel that you are not qualified to make these important investment decisions.
If you are looking strictly at the stock market for investing these funds, then you may have a point.
Making stock buying decisions is extremely difficult and risky, and best left to those who deal with it on a daily basis.
However using your self directed IRA to make real estate investments can be a safer and much more lucrative alternative.
Real Estate investments are generally easier to understand, allowing you to make smarter decisions with your money.
There are many IRA custodians that offer self directed IRAs, including the use of your IRA funds for real estate investments.
These self directed IRAs afford you the opportunity to purchase investment properties or to invest in mortgage notes.
However, you are not allowed to purchase property for your own use with an IRA.
The use of funds must be an investment, resulting in increased returns to your IRA account.
You may decide to purchase a property as an investment, with the intent to sell the property or lease it as a source of revenue.
You can purchase almost any type of property that you believe will increase in value over time, including single family homes, commercial property, apartments, or even raw land, resulting in a nice return on your investment.
An even safer way to invest your IRA would be through purchasing private mortgage notes.
With private mortgage notes you are providing a borrower with the funds they would traditionally get through a bank or financing institution, to purchase real estate.
With these notes you receive a return of 12 to 15% and sometimes higher on your investment.
The lending of money is secured by the value of the property itself.
You will be listed in either first or second position on the deed, receiving higher returns for being listed in the riskier second position.
These loans are given at no greater than 65% of the appraised value and are also backed by title and hazard policies, making private mortgage note investing a safe and more lucrative form of investing.
So if your IRA is languishing with investments in mutual funds and stocks, you should consider transferring to a self directed IRA and investing in real estate where you can take control of your future.
These firms have a vested interest in these mutual funds or CDs, and hence use your IRA to enhance their interest.
But you do not have to accept these subpar returns on your IRA.
You should look for a self directed IRA, where you get to choose how the money is invested.
You may be hesitant and feel that you are not qualified to make these important investment decisions.
If you are looking strictly at the stock market for investing these funds, then you may have a point.
Making stock buying decisions is extremely difficult and risky, and best left to those who deal with it on a daily basis.
However using your self directed IRA to make real estate investments can be a safer and much more lucrative alternative.
Real Estate investments are generally easier to understand, allowing you to make smarter decisions with your money.
There are many IRA custodians that offer self directed IRAs, including the use of your IRA funds for real estate investments.
These self directed IRAs afford you the opportunity to purchase investment properties or to invest in mortgage notes.
However, you are not allowed to purchase property for your own use with an IRA.
The use of funds must be an investment, resulting in increased returns to your IRA account.
You may decide to purchase a property as an investment, with the intent to sell the property or lease it as a source of revenue.
You can purchase almost any type of property that you believe will increase in value over time, including single family homes, commercial property, apartments, or even raw land, resulting in a nice return on your investment.
An even safer way to invest your IRA would be through purchasing private mortgage notes.
With private mortgage notes you are providing a borrower with the funds they would traditionally get through a bank or financing institution, to purchase real estate.
With these notes you receive a return of 12 to 15% and sometimes higher on your investment.
The lending of money is secured by the value of the property itself.
You will be listed in either first or second position on the deed, receiving higher returns for being listed in the riskier second position.
These loans are given at no greater than 65% of the appraised value and are also backed by title and hazard policies, making private mortgage note investing a safe and more lucrative form of investing.
So if your IRA is languishing with investments in mutual funds and stocks, you should consider transferring to a self directed IRA and investing in real estate where you can take control of your future.
SHARE
