“It’s not often that individual investors have a clear advantage over the big guys, but with this type of real estate, that is definitely the case.” --Catherine Wynne, co-founder and president of New Direction IRA
Louisville, CO (PRWEB) December 06, 2012
New Direction IRA has published a free online toolkit that provides individual investors with insights and know-how to take advantage of an often-overlooked investment opportunity involving real estate and IRAs. The toolkit equips investors with detailed guidance and tactical information about how to invest in and own rental real estate through a retirement account. This investment strategy has the dual advantages of earning rental revenue on a monthly basis while also seeing appreciation in the value of the asset over the longer term—a combination that can grow a retirement account at a significantly faster rate than traditional assets like securities.
Investing in rental real estate is an effective strategy during an economic recovery because of the large number of undervalued properties that are located in markets with strong rental rates. Institutional investors like private equity groups, investment firms and REITS have taken advantage of these opportunities by acquiring a large number of single-family properties over the past six months according to recent Wall Street filings, but major obstacles exist for large-scale acquisitions by institutions. Real estate purchases are highly localized processes that do not scale easily, which means local investors have a clear advantage over Wall Street institutions looking to invest in foreclosures and other under-valued housing properties.
“It’s not often that individual investors have a leg up on the big guys, but with this type of real estate, that is definitely the case,” said Catherine Wynne, co-founder and president of New Direction IRA. “The key is to have the capital on hand to act on the opportunity, and that is where IRAs comes in.”
Individual investors with a self-directed IRA can bring together the right combination of local presence, local knowledge and cash to take advantage of these real estate opportunities. Self-directed IRAs enable individual investors to purchase a wider range of assets than traditional IRAs, including real estate. Properties purchased through an IRA are held within the IRA and have the potential to earn rental income for ongoing revenue while the asset appreciates over the longer term.
“Many of our clients have positioned themselves to take advantage of the rebounding real estate market by acquiring properties that will build their retirement savings in two ways: with monthly rental income that goes directly into their IRA, and with the upside of asset appreciation for properties that are priced well below their actual value,” continued Wynne.“These kinds of property acquisitions are typically a cash transaction, with the IRA serving as the source of capital that can fund a portfolio of one, two or more properties that earn monthly revenue while also appreciating in value. It is also possible to fund these transactions by using debt financing through the IRA, by borrowing money through the IRA at highly favorable rates. This can give an IRA even more buying power.”
New Direction IRA developed a toolkit of resources for its own clients who are focusing their IRA investments on real estate, and the company is now making those same resources available to the public at no cost:
- A primer about real estate investing via self-directed IRAs.
- A free webinar providing practical introduction to the nuts and bolts of IRA investments in real estate.
- A step-by-step guide to setting up a self-directed IRA with the asset of your choice.
- And, a practical guide to purchasing real estate using leverage.
For more information about IRA investments in real estate, contact New Direction IRA directly at 877-742-1270 or http://www.newdirectionira.com.
About New Direction IRA
New Direction IRA is a trusted provider of investor education and recordkeeping services for self-directed IRA holders and, since its inception in 2003, has been at the forefront of the self-directed retirement investment market. The company enables individual investors to take control of and diversify their tax-advantaged retirement funds using alternative asset opportunities such as real estate, precious metals, LLCs, notes and lending, and more. Headquartered in Louisville, Colo., New Direction IRA administers more than $570M in assets on behalf of over 7,000 account holders.