Facts About Buying Real Estate Through IRA’s and 401(k) Qualified Plans
Posted @ 6:57 pm - Filed under 1031 Exchanges, 401(k)'s & IRA's, Capital Growth, Cash Flow, Financing, Retirement, San Diego Property Owners
Over the next week or two I’m gonna be talking about how folks can begin the process of recovering the losses inflicted by the latest Wall Street meltdown. Most aren’t aware of some of the options their menu offers. Most have lost roughly 37-45% of their current job related retirement plans, so it’s probably past time they explore other avenues — avenues most don’t know exist.
We’ll be talking about converting your Qualified Plans into a ship with you at the helm. No more ambiguity. No more low, medium, high risk diversity, as if you were ordering a meal at a Chinese restaurant. Relatively reliable annual dividends (um, that’d be cash flow to us), prudent (capital P) leverage, all in an asset, real estate, that doesn’t fluctuate in value merely because the president catches a cold.
And for the record, no, a thousand times no, I haven’t changed my opinion on what a crummy retirement vehicle IRA’s and 401’s are. Regardless, there are some folks so heavily invested in them that the tax hit plus penalties for making moves now, are prohibitive to say the least. Sometimes we hafta play the cards we’ve been dealt — or to be harsh about it, the cards some have dealt themselves. I’m simply offering a light at the end of the tunnel.
We’ll be talking about financing that doesn’t care about whether your credit is second only to St. Paul. Or if your FICO score is in nose bleed country. Non-recourse financing with no personal guarantees — by regulation. Bankruptcy last Tuesday? Doesn’t matter a whit. It’ll be all about the property.
No need for tax deferred (1031) exchanges when it’s time to sell and improve your situation. Cash flow isn’t taxed by definition, and neither are the profits. The increase in stability over the long haul, combined with knowing exactly what you’re doing and why adds to the big picture value.
We’ll begin next week with some of the basics. Meanwhile, let’s talk. Call me at 619 889-7100. Have a good one.
This entry was posted on Wednesday, September 30th, 2009 at 6:57 pm and is filed under 1031 Exchanges, 401(k)'s & IRA's, Capital Growth, Cash Flow, Financing, Retirement, San Diego Property Owners. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
