Wrap Loans – Borrow $98,000 at 8% interest. Loan $100,000 at 12% interest with $2000 from your IRA. The loan earns $12,000, you pay the other investor $8000 and $4000 goes to your IRA, for a $2000 investment.
Buy & Sell Property – Buy the property with IRA funds and sell to an investor, or end user.
And many more – Buy Realtors Commissions, 1st Time Home Buyer Credit, Tax Returns, Car Notes, Mobile Home Notes, Home Improvement Paper, Receivables from Your Tradesman, and Opportunities that you can find and develop to increase the yield on your IRA funds and to enjoy the proceeds of your efforts in the future.
Balloon Mortgage – Buy the balloon portion of a mortgage. A $25,000 balloon payment due in 15 years purchased at a 17.95% yield will cost $1727. A pay -off in 10 years will yield 7%, and at five years will yield 54%.
Pay Day Loans – There are more payday loan outlets in the US than thanks. Study their system. A typical loan is $250. It must be paid back in two weeks at $300. That is 20% profit, 26 times a year equals 520%. You can be the friendly lender, as long as you comply with local regulations and disclosures.
Less than 2% of American IRA owners have checkbook control of their funds. Why are billions of dollars tied up in money markets, mutual funds, CDs and other non-performing assets?
Stockbrokers, financial planners, bankers, insurance companies and other advisers do not explain the options available to every IRA owner. That is, that the owner can roll his IRA over into an IRA custodian and direct the investments himself into real estate, mortgages, notes, options and other profitable investments. I, along with many real estate investors have been using this self-directed approach for many years after developing the documents and strategies used. I see people doubling the value of their IRA account in a year or two. Returns of 20% to 50% are common by using the power of options.
The safest and most productive place for your investments is in a place that you choose without any person or institution between you and the investment. An investment in the stock market has two dubious and unnecessary people in the loop. A stockbroker paid on commissions and a corporate president and staff paid on short-term performance. There are many examples of broker and corporate failure. Enron, MCI, Lehman Brothers and the like have lost billions for their stockholders.
The stock market is the only game that many people know and they take advice from their broker. In 2010 the stock market is at the same place it was 10 years ago. Investors that have some experience with real estate are exposed to many opportunities that can benefit their IRA.
IRA rules allow direct investment in real estate ownership, mortgages, deeds of trust, options, leases, easements, remainder estates and other instruments. This report will describe the following steps: