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3-29-07 Owning Real Estate in an IRA
While it’s possible to own real estate in a traditional IRA, it may not always be the best strategy to take. This issue requires some serious thought and planning. Click here to read one financial planner’s opinion – and be sure to scroll down and read the comment from a reader who is not in complete agreement.
Jackie
Click here to see a list of the cities with the highest foreclosure rates for the month of January.
Jackie
We are frequently asked, “Where should I invest?” Our answer to that question is that every market has the potential for good real estate investments if you know the market and know what strategies to use, and those strategies are what we teach.
The National Association of Realtors tracks the sales statistics in markets across the country. Click here to see a list of the top ten markets that gained in 2006. To see the ten markets that lost the greatest percentage in value, click here.
Jackie
Wealth Intelligence Academy
Condo hotels have been around for years, but they’ve been gaining in popularity and visibility lately. Essentially, owners buy a room at a condo hotel, and when they’re not using it, it becomes part of the rental pool.
Security laws prevent condo hotel developers from selling these units as a business investment. It appears that many buyers are viewing condo hotels as an alternative to a more traditional second home. But there are plenty of questions about appreciation, depreciation, and whether or not the unit will make money for the owner.
The Orlando Sentinel’s Christopher Boyd wrote a good article, “Condo hotels: A room boom,” that takes a look at how the properties work and the Central Florida market. It’s worth reading. If you’re considering a condo hotel, as with any real estate purchase, do your homework and be sure you completely understand all the potential risks and rewards before you buy.
Jackie
Chief Blogger
Wealth Intelligence Academy
When you read the news reports and commentaries on today’s real estate market, it’s easy to get confused. The advice is all over the board: sell, buy, hold. What should you do? The answer is “all of the above”—depending, of course, on your particular market and circumstances.
Paul Kaihla tracked down investors and other industry experts for his Business 2.0 article, “The New Rules of Real Estate.” These rules aren’t really new—most are strategies we at Wealth Intelligence Academy have been teaching for years. But it’s a worthwhile read and may give you some ideas on what you can do it your market.
Jackie
In his book, Millionaire Real Estate Mentor, Russ Whitney wrote: “Don’t take financial advice from poor people.” Makes sense, doesn’t it?
So how do the very rich invest their wealth and what can that teach you? Private equity and hedge funds are not the vehicle of choice for many high net worth investors. For details, read Fortune reporter Katie Benner’s article, “How the very rich invest their wealth.”
Jackie
In Hamilton County, Ohio, a group has formed to help residents who are facing foreclosure. According to an article in the Cincinnati Enquirer, many of the foreclosures in this area are the result of unsophisticated buyers who purchased houses with inflated appraisals, typically in poor neighborhoods. When the buyers can’t keep up with the payments, lenders foreclose—and neighborhoods risk becoming blighted by empty, sometimes dilapidated homes.
There are several lessons here: Always operate with honesty and integrity. Don’t try to inflate the value of the properties you are buying or selling—besides being unethical, it may also be illegal. You don’t have to resort to cheating to make money in real estate.
When you do the right thing for your buyers and sellers, everybody wins—and by everybody, I mean the homeowners, the communities, the lenders, and you.
Jackie
Chief Blogger
Wealth Intelligence Academy