Banking and Finance » Banks Invest Your IRA Money in Home Mortgages-Shouldn't You?
Today's Popular Articles
Banks Invest Your IRA Money in Home Mortgages-Shouldn't You?
Banks Invest Your IRA Money in Home Mortgages, Shouldn't You ?
You can pump high yielding, tax free profits secured by real
estate directly into your IRA!
I don't care what your banker or stockbroker told you, the IRS
says you can. (http://www.irs.gov/publications/p590/index.html)
You can earn up to 25% on your mortgage loan investment in a
couple of months on short term deals. Long term loans can triple
your investment while generating a cool, passive income stream
over 15 years or more.
You are probably aware that for every $100,000, in mortgage
money you borrow you are going to repay nearly $300,000 by the
time its paid off in 30 years, right? Wouldn't it be nice to
receive returns like that, instead of paying them?
You can!
The risks are extremely low on this type of investment. Banks
will loan over 100% of the purchase price if the loan is secured
by 1-4 family residential real estate. How much will they loan
you on your stocks? H'mmm!
The collateral is a family's home, the default rate is less than
1% and it is the most in-demand type of real estate there is.
If the homeowner stops paying, you take the property and sell it
to recover your money.
Generally, there are two types of loans you would make, short
term and long term.
Short term loans carry a higher risk as they are usually made to
real estate investors, who buy, fix up and resell houses. They
borrow the money to buy a property all cash to get the best
possible price.
They would then either fix it up and sell it or just sell it if
it were in good enough shape.
These loans are generally for a year or less and pay interest
rates as high as 12% or more!
Your loan amount on this type of deal would usually be from
$25,000-$250,000.
The long term, purchase money mortgages made to homeowners,
would have smaller returns, just below the rates the banks are
charging, because of the relative safety of the loan. Loan
amounts would be from about $50,000 to $500,000. You could
invest alone or in combination with those of other investors,
forming your own private IRA Bank!
Today's Popular Articles
As the real estate market worsens, the easy bank mortgages will
dry up, providing greater and greater demand for these private
loans.
Think of the possibilities! You can rejuvenate your shriveled
IRA, 401(k) or Keogh by stuffing it with secured, tax free real
estate profits!
You can run a small, classified ad in your local paper or
network with real estate agents and you'll find clients.
In most states, you are allowed to make a small number of loans,
before you have to think about licensing, but check the law in
your state just to be safe.
Let your private, IRA Bank put you back on the road to early
retirement!
About the author:
Copyright 2005 Bill Young. Bill is a former bank mortgage
officer. He is a real estate investor and personal financial
consultant. You can learn more about earning high yielding, tax
free returns secured by real estate in your IRA or other
retirement fund here: http://IRAInvestorsExchange.Com
- ClickBank Link Theft: Is It Really That Bad?
If you have visited any of the affiliate-related websites or read any of the various ebooks about affiliate marketing, you’ve almost certainly seen references to the thorny subject of link theft. Indeed, so contentious is this issue that it is... - Making Money Selling Other People's Products
A lot of people are now getting into online businesses and... - Stop Wasting Money Each Month On High Credit Card Interest Payments
Do you know what your credit card is truly costing you and how to lower credit card interest rate? Many people assume that they do, but aren’t familiar with the hidden fees that many credit card companies are charging....
8 Users Online