How To Invest In Passive Real Estate With Your IRA

I'm all about keeping more of all things that are good, especially when it comes to my hard-earned money. I also know that even the best financial advisors can't offer their clients, or have expertise in, every type of investment. Many financial advisors won't always tell you about a strategy for retirement is that is growing quickly in popularity. It's called a self-directed IRA, sometimes a checkbook IRA, and by having one, you are able to take advantage of a myriad of opportunities that may be outside of the options that your financial advisor is able to offer. Basically, with a self-directed IRA you can take all or part of your retirement account and roll it over into an account where you control the investments instead of the company that handles your IRA. I first converted some of my IRA holdings to a checkbook IRA about six years ago, and it’s how I began investing in passive multifamily real estate syndications. In addition to real estate, you can also invest your IRA in precious metals, oil and gas, private hedge funds, the list goes on and on. Whenever you are presented with an investment opportunity for which you might like to use your IRA, the very first thing you should do is consult your tax advisor. He or she can first determine if what you want to do is allowed by the IRS, and then advise you as to whether it would be better to use non-IRA funds or your self-directed IRA. Using my IRA to make my first couple of passive real estate investments took some of the risk out of taking those baby steps into real estate syndications, and it consequently opened up a whole new investing world that I didn't even know existed.

Deedcoin launches private virtual token sale

Deedcoin, a digital currency startup that wants to disrupt real estate commissions by paying agents partly in digital currency tokens, last night began a private pre-sale of its tokens priced between $1.50 to $3.00. The company says these tokens, based on the Ethereum cryptocurrency standard–a popular alternative to Bitcoin with some extra features–can be used by prospective property buyers and sellers to hire real estate agents across the country. Deedcoin says in a document on its website that the private sale will “conclude on either June 30, 2018 or when 40 million tokens have been sold, whichever comes first.” The company claims that it has partnered with registered real estate agents in 28 states who have agreed to accept Deedcoin tokens as part of their payment, in addition to drastically reduced commissions paid in U.S. dollars—as low as 1 percent, according to the company’s launch website. Inman has asked Deedcoin for names of specific participated agents and will update when we receive a response. According to Deedcoin, buyers and sellers will be able to log into its website and list or find properties for sale where agents would accept Deedcoin. Participants in the private sale were instructed to visit the portal site, agree to the terms, enter the amount of Deedcoin they want to order, and click “pay now” to pay with a credit card or digital currencies ether, bitcoin or litecoin. Buyers could expect their purchased Deedcoin to arrive in one business day to their Ether Wallet address, the message said. The company plans to hold an Initial Coin Offering (ICO) on January 25, when it will open its tokens for sale to all members of the public. Deedcoin specifically says it’s complaint with U.S. securities law, noting in its email announcing the private sale: In compliance with SEC regulation, U.S. Deedcoin purchasers are limited to 1,500 Deedcoin ($2,250) plus bonuses, UNLESS you are an accredited investor. Deedcoin is just one of a growing number of real-estate themed ICOs planned for the month and year ahead.

Real Estate vs. Stocks: Which Has Performed Better Over 145 Years?

What’s a better investment, stocks or real estate? If each asset requires $20,000 in cash to purchase it, then it takes a lot of money to build a broad, diverse portfolio. But residential real estate? For everyone who didn’t like the look of how real estate returns have compared to stock returns over the past few decades, consider that the Sharpe ratio for real estate has only grown stronger over time. Another way of looking at it is return per unit of risk – here’s how equities have compared to real estate in each of the 16 countries studied: Returns & GDP Advanced economies tend to have slow economic growth, right? On average, equities and real estate perform several times better than GDP growth. But Wealth Wise Wendy, who’s not nearly so average as Joe, invests as much money as she can in equities and real estate. Want a few reasons why rental properties are better investments than bonds? Should I Stop Investing in Equities and Just Buy Rental Properties? Residential rental properties offer excellent returns with low volatility.

Ms. Independent: Top 10 Cities Where Millennials Live Alone

She rides her bike downtown regularly for dinner and a show, or sometimes to take a cool dip in the river. A top-of-the-millennial-pile 34 years old, she is among the 15 percent of millennials who live alone in Richmond, the metro area where a greater share of millennials live solo than anywhere else in the country. In a place where millennials living solo make a healthy $49,500 a year (median) and employment is up 3.6 percent since a year ago, that makes for an attractive package. She pays $960 a month for her 1-bedroom, which is in a new apartment complex and has that sweet balcony. It’s also a great place to settle down, and many of her friends are snapping up real estate. “I have so much more of a chance to buy a place here than I would in big, popular cities,” she said. Often they do it in places where rents are more affordable — areas like Pittsburgh, Kansas City and Oklahoma City, where rents take up around 25 percent of people’s incomes. They also go solo in metros like Virginia Beach where they can afford to buy homes, and places like Austin with strong employment growth. And I don’t need 100 channels on cable.” Millennials living alone make $38,800 a year (median) in Columbus, where people spend 26 percent of their incomes on rent. They make good money — $66,000 for millennials living alone in San Francisco and $72,000 in Riverside (medians) — but people who live in those places spend 46 percent and 36 percent of their incomes, respectively, on rent.

What the Heck is Mortgage “Note” Investing? The Start of a Journey

Have you ever heard of people talking about note investing? Probably not! It is not a topic that you are discussing over coffee or at a social event.  Would you be...

Blockchain expert: “It’s not going away”

In a conversation with HousingWire's Sarah Wheeler, Hoffman discussed blockchain technology in relation to the mortgage industry. "We’re still in early stages of this, so I equate it to an automobile on a dirt road behind a horse and buggy. Our infrastructure is not there yet, but it is being developed.” Hoffman said. It will not take away jobs but it will change how we do things.” Hoffman explained to conference attendees the originations of blockchain and stressed the differences between it and bitcoin, which is commonly confused with blockchain. "They’re not the same thing," Hoffman explained. "Blockchain is the technology behind digital currencies, such as bitcoin or others," Hoffman said. "Whatever comes of bitcoin or others, the technology still remains." In an interview with HousingWire, Hoffman explained her goal in the mortgage space is to help people understand the importance and the uses of blockchain technology. "Without any discussions, your executive leaders are not going to push the technology forward," she said. "Yes, it’s technology, but so was the Internet and you don’t need to understand all the inner-workings of the Internet, but you need to understand how you can power it to help your business move forward.”

How Investors Get Burned Following the 2% Rule in Low-Income Neighborhoods

It’s in a rough neighborhood and rents for $1,000/month. But here’s the thing—cash flow involves a lot more than just the cost of the property and the rent. Beyond the principal and interest of the mortgage payment, here are just a few of the most common costs: Property taxes Insurance Vacancy rate Property management fees Maintenance Repairs (turnover costs) CapEx (capital expenditures) There are other costs that sometimes apply. The last time Chester turned over, there was zero damage. Related: Newbie Investors: Here’s the Truth You NEED to Know About $30k Properties The Higher Costs of Lower-End Properties Those tenants at Francis had to be evicted because they stopped paying the rent. But it doesn’t stop at the higher risk of rent defaults. All the while, Chester has purred along smoothly, with clean, respectful renters who pay their rent on time every month. Is all this candid talk comparing low-income neighborhoods to middle-class neighborhoods making you uncomfortable? Buying and managing rental properties in bad neighborhoods can be a lucrative niche for investors who know what they’re doing. Or perhaps there are some readers who have been there themselves and can share some firsthand experiences about these risks and costs?

Are You Spending TOO Much on Rent?

Chances are if you are renting you are spending too much of your income on your monthly housing expense. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their rent or mortgage payment. This percentage allows the household to save money for the future while comfortably covering other expenses. According to new data released from ApartmentList.com, 49.5 million renters in the United States were cost-burdened in 2017, meaning they spent more than 30% of their monthly incomes on rent. When a household is cost-burdened by their monthly housing expense, they are not as easily able to save money for the future. The percentage of income needed in the US to buy a home is significantly less than renting at 17.1%! As you can see, the cost of renting has climbed above historic numbers while the cost of buying dropped over the same period of time. Bottom Line If you are one of the many renters who is spending too much of their monthly income on rent, consider saving money by getting a roommate, moving into a less expensive apartment, or even moving in with family. These are all ways to save for a down payment so that you can put your housing costs to work for you! Members: Sign in now to set up your Personalized Posts & start sharing today!

5 Tips When Buying a Newly Constructed Home

When you buy a newly constructed home instead of an existing home, there are many extra steps that must take place. These inspections are important because the inspector will often notice something that the builder missed. If you are an out-of-state buyer, will you receive weekly pictures of the progress via email? Look for builder’s incentives The good thing about buying a new home is that you can add the countertop you need, the mudroom you want, or an extra porch off the back of your home! Schedule extra time into the process There are many things that can impact the progress on your home. Rain can delay the pouring of a foundation as well as other necessary steps at the beginning of construction, while snow can freeze pipes and slow your timeline. Most builders already have a one-to-two-week buffer added into their timelines, but if you are also in the process of selling your current home, you must keep that in mind! Visit the site often As we mentioned earlier, be sure to schedule time with your project manager at least once a week to see the progress on your home. If you are ready to put your current home up for sale and find out what new construction is available in your area, call a local real estate agent who can help you with the sale of your current home and the search for your new one. Members: Sign in now to set up your Personalized Posts & start sharing today!

8 Questions To Help You Decide Whether To Move In Retirement

With your happiness in mind, consider the following eight questions before you finalize a major move in retirement. “What will I do all day?”, is a seemingly simple question that many people forget to ask themselves before retiring and relocating to enjoy their retirement years. Making the decision to move may be difficult if you have an active social life. Driving to celebrate Christmas or Thanksgiving is much easier than flying across the county on some of the busiest travel days of the year. Will moving make it easier or more difficult to see your family? If you are moving somewhere new, consider renting. It also makes it easier to move again if you find that another location would be better in order to be closer to friends or family. Finding a great doctor is hard enough in a big city and other parts of the U.S. You can make new friends in your new town, but that will take time and effort. I work with a couple who have a retirement plan that allows for 10 years to live it up in Manhattan.

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Want a Successful Business? Focus on These 3 Aspects

The three legs are sales and marketing, customer service and financial management. Sales and marketing includes promotion, advertising and lead generation. For example, sales and marketing is five times more important than the other two legs; however, most people tend to focus their resources on customer service. Focus Small The good news is, even if you’re not a natural at sales, there are a few things you can do to generate leads. Spend at least two hours a day on your sales and marketing to generate the leads you need to keep your pipeline full. Your coach will provide the accountability you need to provide consistent communication to the clients in your database. They’ll work with you to create communication and lead generation goals and they’ll help you stay on track to achieve them. Not only will you build stronger relationships with the people in your database, you’ll also generate leads in the form of referrals. Keep sales and marketing at the forefront of your business and loyal clients will follow. Focus on the three “legs,” and, with the help of a coach, you can build a strong, successful business.