Real Estate

Real Estate Investment

A Popular Choice

Real Estate, often referred to as a real estate IRA, is one of the most popular choices in self-directed retirement planning, and for good reason: people are familiar with the concept and investing in real estate can be very lucrative. However, it can also be a perilous venture if unguided. For this reason, Source has enlisted the knowledge and services of a nationwide network of real estate experts. Our home base in Las Vegas relies on the expertise of the real estate company, Goodwin Enterprises, LLC.

Here is a list of Qualifying Self-Directed Real Estate Investments:

Land Banking – A Real Estate Investment Opportunity

Land-Banking-Video-Graphic3

Land banking is one buy-and-hold wealth building strategy that is a great fit for the self-directed portfolio in economically challenging times.  Why?  Because, historically, land values withstand economic cycles.

Land banking is simply an investment strategy that involves buying pre-developed parcels of land in a projected growth pattern such as future, metropolitan expansion corridors before the new development actually occurs.   This investment is simple, secure and predictable.  You acquire the land, receive a deed and wait for the opportune time to sell.  Banked land typically increases in value as the result of rezoning, population growth or municipal expansion.

Unlike the volatility of the traditional markets, land banking can provide peace of mind.  Why?  This wealth-building strategy leverages long-term appreciation that banks on increasing populations and sprawling cities to create a hot commodity for development and potential high rates of return for you.

Four key factors that position an area for Land banking

  • Rapid population growth
  • Diverse economy
  • Abundant resources
  • Infrastructure

If you do your homework, land banking can build your retirement wealth through portfolio diversification.

You Approve Your OWN Loan

In today’s economy, stringent financing guidelines might inhibit real estate investment. But you, using your own retirement funds, can effectively move funds out of the stock market and into real estate while maintaining the tax shelter offered by your retirement plan.

Financing Options

When you consider a real estate acquisition with your self directed IRA investments, you may want to consider a Non-Recourse Loan. Lenders who specialize in this financing may ask for a higher down payment, as they have no recourse against your IRA.  However, if you do not have sufficient funds to fund the purchase, or you do not want to combine your funds with other investors, this is a viable option.