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A Job-Hopper's Guide to 401(k) Rollovers Wary of Stocks? Property Is an I.R.A. Option
By Kathy Chu By Vivian Marino
New York Times Boston Business Journal
Using an I.R.A. to Buy Real Estate
By Adriane G. Berg		 Self-Directed IRAs Allow Investors to Dabble in Real Estate
By Tom Anderson

Business Week
Hatching Property from Your Nest Egg
By Ellen Hoffman
The BP Oil Spill and its Effects on the Housing Market
by Paul R. Whitacre
6/15/2010

So the BP oil disaster has created a lot of news in the past few months, which it should. The utter disaster that the oil spill has created is one that has never been seen in the United States. Along with that, the news has cast a wide net over all major media outlets and networks, almost shutting out any other news of any kinds, save for the vuvuzelas of the World Cup.

The oil spill will create such economic fallout for already economically stricken areas like the south east and the Gulf coast. This is a major issue for housing markets that are still not bottomed out. Take out the fact that over $5 billion in property values are expected to be wiped away, couple that with oil all over the beaches for years, and we have the makings of a true economic depression for a large portion of the United States.

People ask how some can be worried about home values at a time like this. But the truth is that a majority of Americans have their retirements wrapped up in the equity of their current homes. With expectations of selling their homes, moving to a retirement location, and spending their golden years enjoying their days as they see fit, this dream vision is being clouded by the black crude erupting from the bottom of the Deepwater Horizon pipeline.

So what is the fix? Well, the age old mantra of not putting all your eggs in one basket really applies here. Expecting one piece of property to be the sole provider of one’s retirement was shot out of the water back with the 2008 financial collapse.

There are two ways to look at it: If you have retirement funds in your IRA or 401(k), you can invest your IRA or 401k into the deepest discounted real estate in decades. It requires a little know-how, a self-directed IRA, and potentially a non-recourse loan. Or you could have enough to buy a property outright.

This will provide you the ability to have a steady stream of rental income, growing property values, and a guaranteed wealthy IRA and retirement, once the economy rebounds.

Or you can be like everyone else and be worried every day that your sole retirement vehicle is depreciating again.

I recommend the first option. Learn how to invest your IRA or 401(k) in the cheapest property prices in decades. Then be sure that you can retire when you want and how you want.

 

Buying a Foreclosure May Not End Up Being a Bargain for Some Home Buyers
by Paul R. Whitacre
4/28/2010

With all of the home foreclosures on the market, many Real Estate investors and potential new home owners are looking to the bank-owned property market as a way to get a 'steal' on a piece of property.

While in many cases this can be a great way to obtain a potential rental property, vacation home, or first-time home, it can also come with plenty of unintended consequences and expenses.
While some foreclosed properties are selling for around the 50% mark of the previous sale price, many can come with extra unpaid property taxes, mortgage payments, and even other liens that are tied to the property from things like second mortgages or renovations gone bad.

Then there is the potential that a foreclosed property still has the previous tenets living in it while refusing to move, regardless that they are no longer the home owners.

There are plenty of homes that have been foreclosed on that have also been damaged or trashed by a prior tenet that was angry about foreclosure. There was even one man near Cleveland, Ohio who bulldozed his entire house because he was headed into foreclosure.

The word of warning for auctions and similar situations like this is to always try to get some sort of idea of the property before buying. Many auctions will not let you inspect a property before buying it, thus making it impossible to know about the condition of the home in advance.

The best case for any investor or potential home-owner is to buy the property directly through the lender that foreclosed on it. They will have the most information regarding the home's condition, prior tenets, and potential pitfalls before you are on the hook for the property.

You may not get as good of a price as you would have at the auction, but often times you can inspect the house before buying and be sure there are no outstanding debts or claims against it.
It is always best to do your homework and to work with a professional such as the lender when looking at acquiring a foreclosure.

That said, there are so many good deals available to real estate investors out there that it is well worth the effort. It is also great to purchase a property with money from your self-directed IRA or 401(k). Using a self-directed IRA to invest in Real Estate is a great way to earn rental revenue, buy property at the deepest discounted property prices in decades, and to secure yourself a wealthy retirement.

Paul R. Whitacre is a managing partner at WealthyIRA.com. The vision and passion of WealthyIRA is to teach everyone to invest their IRAs, 401(k)s, and other retirement accounts in the deepest discounted Real Estate in decades. Check out more on how to invest your IRA in Real EstateWealthyIRA. Email Paul here. 

 

The Real Facts Regarding the U.S. Economy, Housing Market, and the Shadow Inventory Phenomenon...

by Paul R. Whitacre
4/20/2010

According to Bloomberg and Reuters, the housing recovery is "on course". Housing starts are up 1.6% this month, the highest increase since February 2008.

Builders are breaking ground, homes are being built. The economic recovery is supposedly on the rise...yet no one is mentioning anything about the shadow inventory.

Shadow inventory? The "shadow inventory" of homes includes all delinquent loans and real-estate owned (REO) property that has not yet reached the market.
Reasonable market offers are being refused by banks, after months of painful agonizing delays on short sales. Asking prices are not even close to what buyers are offering to pay. Banks seem to be stalling official recognition of losses on loans against properties that should be in REO.

Bottom line net result: An enormous number of homes for sale are not really on the market to actually be sold because sellers are trying to recover as much as they can against under-water loans. "What do you think might happen to housing prices if all these homes were really put up for sale at market values (this is what buyers are willing to pay right now)?"

The US Federal Government stated this week that foreclosures set a record in the first quarter of 2010.

Bank of America has admitted that half of their mortgage customers haven't paid a dime on their loans in a year.

Interesting Signs of Recovery

With 7 million home owners in notice of default or foreclosure, the White House is on record stating that they want to help nearly 4 million with the Home Affordable Modification Program a.k.a. HAMP.

But what are the results? Only 230,000 people have gotten permanent loan modifications thanks to HAMP. That's only 3.3%.

The typical homeowner who got a permanent modification now has a mortgage payment equal to 31% of their gross income. So even with a modification, that number is a bit high.

Compound that with all the other debt that this average mortgage adjustment recipient has, including credit card debt, car loan debt, (also known as the back-end ratio) the real number skyrockets to over 61%.

So think about that...let it sink in for a second or two. 61% of your gross, "before tax" income is going to debt. There is simply no more money for anything else after the daily necessities such as gas and groceries.

How can this person, who is very much like you and me, save for retirement? I won't even go into Social Security.

Did you know this is the first year that Social Security payments exceed tax income revenues? This wasn't supposed to happen until 2016. But that's another story for another time.

So let's bring this home: what can you do? You need to stop thinking things are 'just ok' and start living like your retirement is on you to provide for you and your family or loved ones.

That means investing your retirement in the deepest discounted property in decades. This is no joke. You can even use your IRA or 401(k) to do it tax-free!

About the Author

Paul R. Whitacre is a managing partner at WealthyIRA.com.
The passion of WealthyIRA is to teach everyone to invest their IRAs and 401(k)s in the deepest discounted Real Estate in decades. Check out how to invest your IRA or 401k in Real Estate at WealthyIRA.com Blog. Follow us on Twitter at WealthyIRA. Email Paul here.

 
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