Sales in Foreclosed Properties Reduce Risk in Self Employed 401k Plan Trust Deed Investments

With the increasing demand in home sales, Prudent Consulting and Sense Financial explain why trust deed investments are safe for a self employed 401k plan.

Los Angeles, CA (PRWEB) July 03, 2014

Home sales have tremendously increased over the past years and only last May, the largest gain has been posted since the last three years. National Association of Realtors revealed significant growth in home sales activity taking place each month, and from April to May alone, a 4.9% increase in sales has been recorded. A good percentage from this increase is contributed by foreclosed properties. Due to the demand of home sales but the lack in inventory supply, the risk of foreclosure in a trust deed investment from a self employed 401k plan or the Solo 401 k plan has been reduced.

According to the National Association of Realtors, the average period on the market of foreclosed properties is 57 days. This could be a reasonable time for a retirement investor to recover his or her investments from trust deeds. As the inventory remains to be limited for home buyers and real estate investors, this pattern will stabilize or will even surge in the next few months.

Aspiring homeowners with compromised budget will most likely probe on foreclosed properties first before taking a plunge on other existing inventories. The likelihood of foreclosed property sales is at high during these times especially that buyers who got affected by the great recession are still on the recovery process.

Moreover, many buyers these days who are also investors look forward on diversifying their investments. Majority of home flippers are investing on foreclosed homes as these could provide them with more profit in a shorter span of time. Owners of self directed retirement accounts, particularly those who have self employed 401k plan are patrons of foreclosed property sales. These individuals are looking for options to diversify their retirement portfolio by having at least one or two rental properties in their account, which also allow them to receive stable and passive income.

Sense Financial is California's leading provider of retirement accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. Over the years, they have assisted hundreds of clients obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.

To learn more about the solutions they provide, please contact: (949) 228-9393


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  • Dmitriy Fomichenko
    Sense Financial Services
    +1 (949) 228-9393
    Email
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