Are you looking for a way to counter the effects that the current economic downturn has had on your retirement savings? Wondering what kind of investment vehicle can generate the highest returns, no matter what condition the economy is in? This article will discuss how buying real estate with a Roth IRA could very well be the answer you’re looking for.First of all, what is a Roth IRA? A Roth IRA is a retirement account where you make contributions with after-tax dollars. However, this money along with any profits or returns you make with it, are forever free of taxes. This means you get more of your money when you retire. You also get more options as to what assets you want to invest in compared to traditional IRA and 401k plans.If you’re unsatisfied with the returns you’re currently getting with your 401k or traditional IRA, you can rollover these accounts into a Roth IRA (most of the time with no penalties incurred). If you wanted to roll over your IRA for buying real estate, it’s not hard to do at all. Why would you do this? Well, for a few reasons. First of all, you are allowed to invest in more kinds of assets. Secondly, you get to keep more of your money when you retire because once the money is in the account, it (along with any profits you make with the funds) are never taxed again. And lastly, you can convert your Roth IRA to a self directed IRA.What’s a self directed IRA? It’s a retirement account that gives you, the account holder, total control over what happens within the account. It also expands your choices of what assets you could possible hold within the account. This kind of account makes buying real estate with a Roth IRA possible. And if you wanted to roll over an IRA for buying real estate, this is the kind of account you would need to create.HEY! Don’t run off too fast though- owning and controlling a self directed Roth IRA is not as tricky as it may sound. By no means do you go at buying real estate with a Roth IRA (or performing any other kind of investment) alone. A “custodian” or “trustee” is responsible for holding your funds, filing all necessary paperwork and records, and making sure that all actions that are taken within the account follow all federal laws and regulations. In a nutshell, you tell your custodian what to do and they not only do it, but they make sure it’s all done legally and properly.So, what kind of potential does buying real estate with a Roth IRA have? Well, let’s put things into perspective. Currently, there are foreclosures happening throughout the whole country; people are defaulting on their loans and are being forced to leave their homes. This leaves two things- a boat load of working-class families looking for affordable housing and a ton of foreclosed homes waiting to be picked up at ROCK BOTTOM PRICES. Do you see the huge potential here?There are turn key solutions available that make the whole process of buying real estate with a Roth IRA easy and practically effortless. All you really have to do is deposit your contributions, tell your custodian what you want to do, approve what they do with your account, and collect your return. Everything else from property search, repairs and renovations, buyer search, etc. is all taken care of for you through a program called Socially Conscious Investing.
Most people agree that real estate is one of the safest investments that a person can make in the current scenario. This is why there are a lot of schemes doing the rounds which suggest that they are the best means to purchasing profitable property.One of these concerns buying real estate without putting any money down. While variations of the scheme have been seen for some decades, it is only now, with many people struggling to make ends meet and crippled with heavy debt at very high interest rates that the incidence of such deals has increased substantially. So how is it possible to become a landlord inside a month and start receiving rental income without having put in any of your own money to buy the property?The process begins with a home owner being in dire need of cash to pay off debt or avoid closure or something similar. If that person has bad credit score and history, it is unlikely that he or she will be able to get funds from any public or private investment firm, including banks. So the private investor steps in and agrees to buying home equity from the owner, not in a lump sum but in equated monthly installments.Another variation is that the purchaser or investor gets 100 % funding for the deal or deals from a wholesale lender and pays the full contracted amount to the owner and then pays the wholesale lender off with the monthly rentals from the property that he or she has invested in.