06.08.10

Real Estate is always driven by the economic principles

Posted in Business Performance, Life + Real Estate at 5:05 am

Most people like to analyze, learn, discuss and analyze some more. They never actually got to do a real estate deal. They love to talk about real estate investments, but never did it themselves. My approach to real estate investment was simple.- I bought some books about real estate investment.
Estate is a surething!Remember Real Estate cycles tend to be regionally based. Real Estate is always driven by the economic principles ofsupply and demand. Some areas of the country, likeSeattle, are going gangbusters, and real estate values aregoing sky high, and other areas like parts of the northeastare not increasing by the same percentage. However almostall areas are going up in value. Historically, propertyvalues increase in a strong job market. What happens if the rental market is below what your payment is? Then you take a loss! And what if the seller is making interest only payments, later changing to interest and principal payments, greatly increasing your payments leaving you in further financial trouble?Now knowing this it only begs the question; is there a better option to no cash money down real estate investing ? The answer is of course, yes there is! That is if you have a self-directed IRA (preferably Roth) or good credit and a relatively decent income of about $70,000 annually.
So you may need to do a rollover if youve got, say, a traditional IRA or perhaps an employer sponsored retirement plan or even a 401(k). Rollover into a fund that allows you to invest yourself, into real estate, and youe way ahead preparing for your retirement. Of course you should get some solid financial advice from your financial advisor before you undertake any rollover to make sure you do it right, and there are various Roth IRA websites you can use to educate yourself on rollovers and Roth IRA rules.
Source: Simarc
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