Real Estate Investing Coaching - Brian Gibbons

Real Estate Investors - Need Private Funds? If you can find the motivated sellers.....

If you as a real estate investor need Private Funds for new first mortgages, look at this article below.

You may or may not know, I train Real Estate Investors to get Private Money Marketing.

The steps to getting millions in loans are:

• Learn IRAs and Self Directed IRAs
• Learn CDs
• Learn how to get lists of people that have IRAs and CDs
• Set up a Seminar Free to All from those qualified lists
• See them 1 on 1 and offer 10% with security of being a Private 1st Mortgage Lender no riskier than 80% LTV.
• Do the paperwork and have the right clauses and CYAs.
• Close at an attorney's office.

That's it!

And keep in good communication with your private lender.

And GET THEIR FRIENDS AND RELATIVES as referrals!

For more info on getting your private lenders for all your deals, email me at team@REISkills.com

Ask for MENTORING FOR PRIVATE MONEY!

All the best in 2009,

Brian Gibbons, REI Coach

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Real Estate Resurrection Begins
Hugh Bromma, Entrust Group 01.08.09, 3:45 PM ET

Sales of new and existing homes continue to decline in the U.S., as assets of all stripes are re-priced lower and consumers become more risk averse. But the news in real estate is not all bad, and in some of the hardest-hit areas, like California, Florida and Nevada, sales in some areas have been rising in recent months.

While the national real estate figures show the country continues to be mired in a downturn that started more than two years ago, there are increasingly pockets of hope out there. It's true that much of the recent uptick in real estate activity reflects distressed sales, such as foreclosures. But the fact is that drastically lower home prices and more attractive mortgage rates--rates are down almost a full percentage point on a 30-year loan--are creating more buying interest, especially in the areas that have been hurt the most.

In fact, October existing-home sales surged more than 37% in the West, primarily because of the rise in sales in California and Nevada. And in Florida, existing-home sales jumped 15%, the second straight month of rising sales in the Sunshine State. Meanwhile, mortgage applications more than doubled during the week of Thanksgiving because of the rapid decline in rates.

Adding to the budding sense of optimism are reports that the U.S. Treasury will look to take mortgage rates all the way down to 4.5%, which would provide a huge boost to would-be home buyers across the country. Of course, real estate, even more than politics, is all about understanding the local area, which is precisely where astute investors are finding extraordinary opportunities.

Experienced real estate investors who have been able to keep some powder dry and understand their local markets are now able to buy properties for 50 cents on the dollar, or even less than just a year ago. In many cases, these are the kind of prices that represent once-in-a-lifetime opportunities, where the downside is now very limited and the upside is incredibly compelling.

One of the keys to finding a great real estate investment is understanding the importance of cash flow. We recently had a client utilize his self-directed IRA to purchase a brand new property just outside of Los Angeles. The property, a three-bedroom, two-bath single family home, was purchased for about $150,000, half what the exact same home would have cost a year earlier.

The purchaser had about $60,000 in the IRA and put down about 30% of the purchase price, making his monthly mortgage payment approximately $1,100 per month. In this area, similar properties rent for at least $1,400, so the property should have no problem showing positive cash flow right from the start. In addition, if there is a pick-up in the real estate market, the purchaser should be able to sell it outright for a handsome profit.

This is the kind of activity we are seeing more of in what were the hardest-hit areas. The key, of course, is having available cash--if you're buying real estate in a self-directed retirement account, you will need to put down 30% of the purchase price--and understanding the unique dynamics of the market you are buying in.

As a large administrator of self-directed IRAs, we've witnessed thousands of investors use their self-directed retirement plans to buy properties and realize excellent returns by selling them at a later date or renting them and allowing them to cash flow, as discussed earlier.

If you do decide to explore some of the more downtrodden areas, do your due diligence and understand the market in which you plan to invest. How is the local job market there? How has the area done in previous economic downturns? There's no substitute for knowing your market and doing your homework.

Hubert Bromma is CEO of the Entrust Group and author of How to Invest in Real Estate with Your IRA & 401(k) and Pay Little or No Taxes, published by McGraw-Hill.

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If you are a Related Party to a Roth IRA Transaction, watch Out! IRS.gov

any transaction between a Roth IRA and a related party will be considered an abusive transaction, and
anyone engaging in such activity needs to register with the IRS.

Notice 2004-8 - Abusive Roth IRA Transactions

Exotic I.R.A.’s: Leaving Stocks and Bonds Behind - BRIAN HARRIS makes a 30 percent annual return on his Roth individual retirement account, but his money is not invested in a soaring biotechnology stock or a hot currency fund.

       

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October 20, 2007

Your Money

 

By DALIA FAHMY

   

Instead, Mr. Harris, a music teacher from Tucson, owns about 25 marimbas, xylophones and timpani. Using the money in his retirement account, Mr. Harris buys the instruments for less than $1,000 each. He then rents them to his students for up to $60 a month. The rental income flows straight back into the I.R.A.

“It’s a good way for me to have income without paying tax on it,” said Mr. Harris, 38, who played with the Tucson Symphony Orchestra for 12 years before turning to full-time teaching seven years ago.

 

Real estate IRAs with checkbook control gain clout -Setup helps consumers save on annual fees, acquisition costs

	Wednesday, February 20, 2008 By Tom Kelly Inman News

Individual retirement accounts that feature self-directed real estate purchases have become more understood in recent years, and consumers now a have speedier avenue to time-sensitive investments.

Many providers of self-directed real estate IRAs now can set up a limited liability company (LLC) that allows consumers to write their own checks for property investments -- including foreclosures and recreational properties -- without waiting for a custodian to process paperwork or courier documents.

"The costs for setting up an IRA with checkbook control can be considerably more than a standard IRA, but the IRA holder doesn't pay additional transactional, special asset-based or holding fees," said David Nilssen, president and CEO of Bellevue, Wash.-based Guidant Financial Group.

To Thine Own Self - Want more investment options? With a self-directed IRA, you decide where your money goes.

                        

                                                                                    

                        
                        

                               

By Farnoosh Torabi    |   Entrepreneur Magazine - November 2007

   

    URL: http://www.entrepreneur.com/magazine/entrepreneur/2007/november/185588.html    

                             

Interested in a retirement-friendly, tax-deferred way to invest in, say, reality TV? How 'bout a beach house in Malibu or a burger franchise in Eastern Europe? Self-directed IRAs can help. Unlike traditional IRAs that limit investors to stocks, mutual funds and bonds, this alternative account allows for a broader, more creative range of assets, including real estate, private equity, foreign companies and even racehorses.

Why the Real Estate IRA?

The need for a better investment vehicle lead to the development of the Real Estate IRA. Since necessity is the mother of invention, the individuals that began promoting the Real Estate IRA sought to develop an avenue to allow an individual the opportunity to invest his retirement dollars in the best long term investment available, real estate.                                                                                                                                                                                      

We researched the IRS Code and determined that the purchase of real estate was perfectly legal under Section 408 of the IRS Code.  The fit is perfect! The Real Estate IRA is not a stand alone program, but an integral part of an individuals' overall retirement program. When combined with Social Security, Employer or Personal Pensions, and other investments, it develops a retirement portfolio of excellent proportions.

The purchase of real estate has many advantages, not the least of which is almost certain long term growth.  When combined with the totally unique advantage of a leveraged purchase through a mortgage, the appreciation is staggering.

                                                   

You will often hear an annual average appreciation of 8% for real estate investments. And this is true as far as it goes. The 8% is based on selling price to selling price for a given property.

                                                   

But let's say you purchase a property for $100,000 with a down payment of $30,000 and a mortgage of $70,000.

                                                   

And in 5 years you sell it for $140,000, a $40,000, 40% profit.

                                                   

But wait!  Since you only put $30,000 down your profit on a cash to cash basis was over 130%. Try that in the Stock market.

                                                   

Conversely, you do not have to be an investment guru to be aware of the horror stories created by the stock market in the last few years, a trend that will continue as long as the "Big Guys" continue to treat public companies as their own piggybanks.

                                                   

If the current trend of non-punishment and non-accountability continues, the Stock market will continue to drift rudderless, and attract fewer and fewer investors.

                                                   

Without new money the Market will go nowhere.

                                                   

Savings Institutions are not worth consideration when you are attempting to build a retirement nest-egg. They simply do not keep up with inflation.

                                                   

Contrast this with the purchase of a building lot that you hold for 15 yrs and sell for 5 or 6 times its purchase price.

                                                   

Or you can purchase a golf or beach Condo, earn tax deferred income, and move into it at retirement.

                                                   

Many of our clients have done both. They purchased a homesite for their retirement, then invested in an income producing property to fund their eventual retirement home.

                                                   

The undeniable fact is Real Estate values continue to appreciate and will always be the best investment.

                                                   

And its' all tax sheltered, OR tax free, if you have a Roth IRA.

                                                   

And don't delay. Time is a big factor in the appreciation of any investment and real estate is no exception.

                                                   

With real estate, you have an asset that you can actually see and touch, which continues to grow in value.

                                                   

While the IRS regulations prohibit you for physically occupying your IRA, you can monitor it and make improvements in the property. And these improvements are made with pretax dollars.

                                                   

You cannot depreciate the value of the real estate in your IRA. But this is of little consequence since depreciation is nothing more than a temporary financial advantage which must be 'paid back' when you sell your asset.

                                                   

The amount depreciated reduces the tax base which increases the tax bite at time of sale.

                         

• You purchase a Condo for $100,000 and sell it in 5 years for $200,000, realizing a profit of $100,000.
• And because it was a non-IRA investment you amortized the value each year to the tune of $4,000, thereby, reducing your taxable income.
• Your capital gain is your $100,000 cash profit plus the $20,000 of depreciation you deducted in the amortization process.
• Your $4,000 annual tax break was purely temporary.

                                                   

Real Property owned by your IRA is just as safe from the IRS as any other qualified plan.

                         

• As long as the asset remains in your IRA it is completely tax deferred and appreciates tax free.
• A Roth IRA is a true Grand Slam, since all the growth is completely TAX FREE.

                                                                             

Just imagine the appreciation in value of a piece of real estate over 15-20 yrs. and selling it with...

                         

• NO tax consequence;
• No income tax,
• No capital gains.

                                                   

An example is a woman purchased 3 lots in Southwest Florida in 1996 for 18,000, using her Roth IRA.

• She decided to build a home on one lot and promptly sold the other two for $114,000.
  
• Since the property was held in a Roth, she paid no taxes, and can build her retirement home with minimal added funds.