Two of these Real Estate investment programs are based in Texas and recently, an article was published in The Atlantic magazine that fully supports investing in Texas for some very solid reasons.

Here’s a brief summary of the article:

No state is thriving in the wake of the Great Recession, but compared to the rest of the country, Texas is experiencing something like an economic boom.  Three of top five most resilient major metro areas for employment are in Texas – McAllen, Austin and San Antonio.  And, Texas was recently named by CNBC as the “Top State for Business” for the second time in three years.

There are 4 reasons why Texas is a great place to invest:

1.  A Late Start – because of energy and technology, Texas declined slower than the national average and bounced back faster.

2.  Stable Real Estate – diversification, non-exotic lending practices, abundant & cheap land prevented a “bubble” like those in California, Florida, Arizona & Nevada.

3.  The Right Mix – stable industries such as energy, education, high-tech, health care and military spending have served to keep the economy going.

4.  Something About Texas – it’s a popular place to do business because of tax incentives, a plentiful labor supply, lower wages and less regulation.

Here is a link to the full story: How Texas Is Dominating The Recession

According to the article, San Antonio is the only large metro area to place in the top 10 of these post-recession categories: lowest unemployment, lowest percent job loss since December 2007, and lowest decline in home prices.

Right now, many of our Self Directed IRA Real Estate investors are focused on San Antonio, Texas. They’re “loaning” funds, rather than “owning” property, through a turn-key program with one of our trusted partners . It is classified as “Interim Construction Lending”.

Purchasing rental property for dependable cash flow is a very good long-term option, but this is a “great” short-term option with interest rates being paid to investors of 18% to 20%.

Anyone is eligible to invest using either Checkbook IRA LLC & Solo 401(k) funds or personal funds.  Interest is paid monthly and the term of the loan is 6 months.  After that period, the investor can roll right into another specific loan.

Utilizing Self Directed retirement funds is perfect for this investment since it has the potential of “supercharging” your account at a time when many investors have seen significant losses in the stock market.

Risk is mitigated by a tightly controlled process whereby funds are disbursed in stages or “draws” by the builder.  In essence, the investor is in first lien position and is protected just as a bank would be under the same circumstances.

Please click on this link: Interim Construction Lending for a Fact Sheet on this investment opportunity.

For detailed information, please contact us by phone at 877-229-9763 or fill out a Contact form.

Safeguard Financial
877-229-9763
www.IRA123.com

Then, within days, USA Today published an article entitled “Computerized Stock Trading Leaves Investors Vulnerable” by Matt Krantz, Staff Writer.

A summary of Farrell’s article goes straight to the heart of the matter:  “Wall Street has no conscience, no soul, no ethics, no moral values…other than to get rich as fast as possible”.  But, he says, equally as troubling is that “we, as Main Streeters, are not only allowing it, but are addicted to continuous participation in it, regardless of outcomes”.

Krantz, in the USA Today article flatly states “There are no real buyers and sellers, the machines see stocks not as securities used by companies to raise money, but rather, symbols, numbers and bits that are traded, swapped and exchanged”.

Now, here’s the really scary part.  Krantz reveals that “technological advances are making it nearly impossible for regulators, who play a critical role in maintaining a fair market, to monitor the system that by its very nature has no paper trail and buries transactions in mountains of data”.

After reading both these articles about Wall Street’s “rigged casino” mentality, hopefully you’ll be ready once and for all to distance yourself from the madness by seeking alternatives to your investment options.  And, your best option is to invest in the distressed real estate market with a Real Estate IRA.

Over the last year, more and more clients have asked us if we could recommend Real Estate investment options for their self directed plans.  So, we began investigating numerous turn-key Real Estate investments that are tailor made for Self Directed IRAs and 401(k)s.

We narrowed our focus to three companies that have entirely different business models and will fit the needs of most of our clients.  And, we can wholeheartedly endorse these companies as having competent and ethical leadership.

In fact, we are investing alongside our clients in two of the companies.  The investment amounts range from $22,000 to $300,000.  Historical returns are from 12% to 20%.

Following are brief descriptions of each program:

Interim Construction Lending – Texas & The Pacific Northwest

Because of tight lending restrictions by banks, builders have had to go to private sources to build residential homes for buyers who are pre-qualified for a mortgage and have entered into a purchase and sale agreement for the property.

In essence, you become “The Bank”.  The process is turn-key with everything in place, including legal documents to support the loan and put you into 1st lien position. Investment: $25,000 to $140,000.  Typical term is 4 to 12 months, at which time you can reinvest or not.  Returns: 12% to 20%.

Model Home Leasebacks – Major Metro Areas of Texas

In order to free up capital to build homes within a subdivision, builders are willing to sell their model homes and then lease them back at very attractive rates. These model leasebacks are extremely rare since builders have cut back on new development over the past year. Cash flow is estimated from $600 to over $2200 per month.

Tenant is the builder and already in place with leases! Some of these homes come with a “resale agreement” from the builder. Use your Self Directed IRA or 401(k) as an all cash lending resource or obtain a non-recourse loan to leverage the purchase.  Investment: $159,00 to $300,000.  Returns: 12% to 20%.

Cash Flow Homes – 26 States

These are residential properties that offer an affordable program to first time home buyers, with an owner-financing component. The homes have been rehabbed and have an installment contract buyer in place.

All properties come with the following:  in place installment contract buyer, copy of contract, free and clear title, national servicing company, national title company, credit report of installment buyer, recent comparable sales, info on the area, pictures of the home before and after, inspection/repair report, and performance guarantee.

Unlike owning a rental property, by offering first time home buyers a program with a deed for land contract component, they have pride of ownership. The buyers are considerably more qualified, pay on time, and show pride of ownership, thus increasing the value of the property and improving the community.  This approach protects against property value decline and insures long term cash flow without the hassles of being a landlord.  Investment: $22,00 to $60,000. Returns: 13% to 15%.

For detailed information on these investments, please contact us by phone at 877-229-9763 or fill out a Contact form.

Safeguard Financial
877-229-9763
www.IRA123.com

It was during this “boom period” that I did my first “rehab & flip”. I paid $8500 for a 2 bedroom, 1 bath single family home, put $1500 in it and sold it for $15,000.

Being a young, single guy, I didn’t have much money (and certainly not a Real Estate IRA) so I had to partner up with a fellow who owned the local lumber store. He paid cash for the property and supplied the building materials. I supplied the sweat equity. We split the profits 50/50.

That didn’t seem like such a bad deal to me at the time. Still doesn’t.

The latest Case-Shiller Housing Report offers up an interesting view of our current housing circumstance. The key observation is that the prior housing decline in the 90s lasted about 8 years, and that was against a better economic background filled with the rise of growth fueling technologies like cell phones and the internet.

The current housing mess is now in it’s third year and is against the backdrop of a weaker, more debt laden government and economy. This suggests the housing market (and thus the banks and the economy) is likely to struggle for years to come.

Now, for those who are discouraged by this report, I want to remind you that every person is in the same boat. We’re all experiencing the negative impact of this meltdown. But, as we have written many times these last several years, there’s a silver lining in those dark clouds…if you have a Self Directed Real Estate IRA.

The deals are everywhere. You just have to look.

Today, a new client called to tell me that he had just picked up a short sale in Goodyear, AZ for $129,000 with his Real Estate IRA plan. Three years ago, it was built for almost $300,000. And guess what, the short sellers are renting the home back from our client at $1100 per month. After taxes and other expenses, that’s about an 8% return, not including built-in appreciation and long term appreciation.

There’s an enterprising Real Estate Broker/Investor in Dallas, TX that we’re very familiar with. He’s put together a Construction Lending program for builders that are having a hard time borrowing money from the bank.

The builders own the lots free and clear and have a sales contract in hand from an approved buyer with the mortgage all lined up. Self Directed IRA investors are acting as the bank with all the attendant rights of a lien holder and are earning an annualized rate in the 18% range.

Many of our clients are investing close to home, but equally as many are venturing out to places where the deals are better. It’s not hard if you hook up with a professional team that offers turn-key services so you, the retirement investor, can just write the check from the Checkbook IRA or Solo 401k bank account and let everyone else do the work.

Will these opportunities be around for long? Yes. How long? Not sure, but it’s almost a certain fact that prices won’t go any lower. As time goes by, more and more people are not just picking up one deal, but multiple deals.

In the next few years, the great deals will be gone. Good deals will still be around and just plain old deals will be available. So, it’s just a matter of degree.

Real Estate, except in times of wild speculation, has always been a great investment. More millionaires have been made by investing in real property than any other way.

So, shake off the negative thoughts about what has happened to you and get out there and make something happen. It’s not too late to set up a Real Estate IRA with “checkbook control“.  There’s still those 70s “rehab & flips” all around you…not to mention great “buy and hold” rental property.

If you’re serious about growing your retirement wealth through investing in Real Estate with your self directed IRA or Solo 401(k), contact one of our expert Self Directed IRA advisors today.  We’ll have you up and running in 30 days or less with the fastest, turn-key setup process in the industry.

Safeguard Financial
877-229-9763
www.IRA123.com

Now that the first quarter is behind us, what’s really apparent is that even though things have somewhat stabilized, there’s a lot more pain to come.

As poorly as the housing market has performed so far this year, some economists think it may soon get worse.  Millions of homeowners are behind on mortgage payments, leaving them vulnerable to foreclosures.  In turn, these distressed sales will further drive down prices of neighboring homes.

That’s the bad news.  Now for the good news.  As we have pointed out before, in every unfortunate situation or circumstance there is always opportunity for the investor who has set up, and operates, a Real Estate IRA or a Solo 401(k) plan.

Recently, one of our clients told us how he’s putting his Self Directed IRA to use.  He lives in California and is investing in real estate in Ohio.  A little over a year ago, a friend told him about a company that had experienced great success acquiring distressed properties in Youngstown.

With a professional team in place (Realtor, contractor, property manager, etc), the company is buying small single family homes on behalf of the investors and then doing a minimal amount of rehab work.

They rent the properties primarily to people who have been living in apartment buildings that want to live in a neighborhood with a yard.  The renters are actually paying less rent and are getting more square footage and amenities.

In some cases, the properties are offered on a lease/option basis and the renters are putting down a non-refundable deposit of up to $3000, in addition to first and last month’s rent.

Our client currently owns 4 of these properties…2 with personal funds and 2 with his Checkbook IRA LLC.  He tells us that the return on investment he’s experiencing is a lot better than when he had everything tied to the stock market.

This is just one example among dozens we hear about every week.  Each story seems to have a unique twist, but the common element is that these investors are doing very well with IRA/401k real estate investments because they’re willing to put some effort into understanding how to best grow retirement wealth.

If you haven’t read our posts on distressed properties and the opportunities for investment, click HERE to read the 3 part series. Now, more than ever, banks are going to be more willing to make deals with short sellers and with the properties they have taken back in foreclosure proceedings. Again, more opportunities.

If you haven’t done it already, get a Self Directed IRA plan set up, find a good Realtor with training in the distressed property market and start making offers.  The time to take control of your own retirement investing is now.

Contact one of our Expert IRA Advisors at your earliest convenience in order to put together an investment plan that will meet your needs and put you in a position to take advantage of any opportunity that may come your way.

Safeguard Financial
877-229-9763
www.IRA123.com

In the early part of 2009, we forecast that real estate prices would stabilize either in late 2009 or early 2010. And, at this point, it looks like the worst is over and those huge drops in prices are a thing of the past.

That doesn’t mean there won’t be additional price drops, especially in cities where foreclosures dominate the market. Conversely, where inventory is limited and jobs are not an issue, expect to see some slight appreciation.

Regarding the distressed market, foreclosures and short sales are likely to increase. With the job market in the tank and fewer homeowners able to keep up with their mortgage, options are limited. This scenario probably won’t change for the next few years.

So, what does this mean for Real Estate IRA investors? While it is truly unfortunate that many Americans are being hit really hard with the economic meltdown, it is a FACT that opportunities for cash investors are almost unlimited.

Properties in desirable areas are at all-time lows and investors can practically name their price. Being that this type of investing is determined purely by the potential for cash flow, there should be no emotional attachment. That makes it easy to simply move on to the next property, if the seller is unwilling to accept an offer.

In 2010, huge returns will be realized by investors who have the cash to make the deals.  Rent-to-own and owner financing will also continue to grow in popularity and unless the lenders loosen their restrictions, it could be “Back To The Future” to the 1970s and 1980s when high interest rates bred “creative financing”.

It bears repeating. Cash is king and for investors who are taking advantage of Checkbook IRA plans to scoop up properties, the sky is the limit.

If you haven’t read our posts on distressed properties and the opportunities for investment, click HERE to read the 3 part series. About the only update we can offer to these posts is the fact that banks are going to be more willing to make deals with short sellers and with the properties they have taken back in foreclosure proceedings. Again, more opportunities.

So, if you haven’t done it already, get a Self Directed IRA plan set up, find a good Realtor with training in the distressed property market and start making offers.

The time to take control of your own retirement investing is now.  Contact us today to get started.

Safeguard Financial
www.IRA123.com
877-229-9763

Now comes the news that foreclosures have just seen the “worst three months of all time” according to a report by RealtyTrac, an online marketer of foreclosed homes.

The report stated that “ the foreclosure crisis may not diminish anytime soon. The fastest growing area is in the 180 days late-plus category, the most seriously delinquent borrowers.  It’s going to be a lingering problem.”

Quoting the RealtyTrac report, Les Christie, a staff writer with CNNMoney.com, comments that “the statistics may understate the depth of the foreclosure mess because lender and government actions have delayed many filings. As a result, some delinquencies have not been counted on the foreclosure tallies. That means the crisis may not end quickly”.

And because there are so many delinquent borrowers, RealtyTrac predicts the banks will be slow to take back their properties and put the repossessed homes back on the market.

“It’s hard to envision [the banks] putting millions of properties up for sale and cratering prices,” he said. “Recovery will be slow and gradual. I don’t see home prices getting much better until 2013, stated Rick Sharga, a spokesman for RealtyTrac. (Read the entire article here: Foreclosures: Worst Three Months Of All Time…)

So, there it is…for the next 3 years there will continue to be opportunities for Real Estate IRA investors who have made it their mission to understand their local markets and be ready to move into action when the right property is available.

If you haven’t done so already, go to the Safeguard Financial Blog and read the following 3 posts related to short sales, foreclosures and REOs:

• IRAs & Distressed Property – Pt1
• IRAs & Distressed Property – Pt2
• IRAs & Distressed Property – Pt3

As we have discussed in this series of posts, opportunities for picking up “distressed” properties abound. Yet there are 3 fundamental steps that should be taken in order to be successful:

Step 1: Education. Be able to speak the language of “distressed property”.
Step 2: Put together a team of knowledgeable professionals to assist you.
Step 3: Have the right plan in place prior to engaging in a transaction.

If you are serious about growing your retirement wealth through investing in distressed properties with your self directed IRA or Solo 401(k), contact one of our expert IRA advisors today.  We’ll help you establish an investment plan that will enable you to be ready to act on opportunities quickly and gain the best deals.  Our experienced and professional team will have your Checkbook IRA or Solo 401(k) up and running in 30 days or less with the fastest, turn-key setup process in the industry.

Safeguard Financial
877-229-9763
www.IRA123.com

In Part 1, we’ll take a look at the opportunity (for investors) created by foreclosures, short sales and REO (real estate owned) property.

Part 2 will deal with the advantages of being a cash buyer utilizing a Self Directed IRA or 401(k).

Part 3 will explore having the “right plan” in place before the investment opportunity arises!

___________________________________________________

For property owners who find themselves in a situation where the value of their real estate is less than what is owed on a mortgage, these are “distressing” times.

Usually, it’s a combination of declining values and the inability (or unwillingness) of the owner to continue to make loan payments that causes a property to be classified as “distressed”.

To describe properties in various stages of distress, certain terms have become all too familiar to us…foreclosure, short sale and REO (real estate owned property).

Here’s a quick definition of each of the stages of distressed properties:

Foreclosure – usually means the owner has stopped making mortgage payments and the note holder or lender has given notice that unless payments are brought up to date, the property will be sold at auction, to the highest bidder.  The owner can bring the loan current and thereby avoid foreclosure.  However, if this doesn’t occur, the property may be sold for the amount owed, rather than market value, making the purchase attractive to investors.

Short Sale – occurs after a property is in foreclosure, but prior to a public auction. In this circumstance, a note holder or lender agrees to accept less than what is owed on the property.  This is especially attractive to an investor, since they are able to purchase the property for less than they would pay at a foreclosure.

REO – means real estate owned by the lender.  This is similar to a short sale, except the lender owns, and has taken possession of, a foreclosed property. Typically, the mortgage holder ends up with the property because the public auction did not produce an acceptable bid. Considered the best way to buy a distressed property, an REO eliminates the seller from the equation leaving only the investor, investor’s agent, the lender and the lender’s agent. Without the emotion of ownership involved, the transaction becomes purely a numbers game.

While it is unfortunate that real people are suffering real loss, it is a foregone conclusion that each of these stages of “distress” also signals an opportunity for the Self Directed IRA & 401(k) investor.

About 70% of our Self Directed IRA clients are focused on real estate investing and, not surprisingly, many of them are pursuing distressed property sales – in their own neighborhoods and in regions of the country where the fundamentals of economic recovery are in place.

We regularly work with investors who are picking up properties at significant discounts – often for less than it would cost to build.  They are then receiving excellent cash flow as rentals, or flipping the properties for handsome profits.  Best of all, they are actively growing their retirement funds with tax deferred or tax free gains by utilizing a Checkbook IRA or Solo 401(k).

If you’re a seasoned investor then it is likely that you are already participating in this segment of the real estate investing marketplace.  If you’re a novice, but recognize there is opportunity awaiting you, then you’ll definitely want to stake your claim in this area of Self Directed IRA real estate investing.

Knowledge is power…so goes the saying.  One of the best ways to succeed in distressed properties or any other form of real estate investing is to build a solid team – and thereby leverage the knowledge of experienced professionals.

Since some Real Estate Brokers are now “specializing” in distressed sales, it is advisable to hook up with one of these professionals…who has local knowledge.  They, in turn, will be able to recommend others, such as a competent real estate attorney who can make sure your interests are being protected.

When it comes to funding real estate investments with a self directed IRA or Solo 401(k), Safeguard Financial has you covered.  We have decades of real estate investing experience in house, as well as a solid understanding of how to properly work with banks, realtors and title companies to get deals done right.

Even with a top rate team in place, you need to be able to speak the language of “distressed property sales”.  Just like with Self Directed IRA investing, there is a wealth of information on the internet and we recommend you take full advantage of it.  For your convenience, here are a few links that you will find helpful:

Handling Short Sales Foreclosure Sale Basics Buying a Short Sale Home

Distressed Homes in Default – Distressed Short Sales and Foreclosures

In Part 2 of this series, we will take a look at the advantages of being a cash buyer…utilizing a Self Directed IRA or 401(k).

In the meantime, we urge you to contact one of our Expert IRA Advisors at your earliest convenience in order to put together an investment plan that will meet your needs and put you in a position to take advantage of any opportunity that may come your way.

Safeguard Financial
877-229-9763
www.IRA123.com

• The majority of publicly traded companies such as Coca Cola, UPS, Delta Airlines and many others, have frozen traditional pension plans.
• Employer matching contributions to 401(k) plans have been put “put on hold”.
• Retirement benefits are under attack now, and medical benefits (already greatly reduced) are the next target.
• Every man, woman and child in America now owes $186,717 in tax debt thanks to the Wizards of Wall Street (investment bankers) and U.S. government elected officials who definitely do not have your best interests at heart.
  

(According to Wikipedia, the U.S. government is committed under current law to mandatory payments for programs such as Medicare, Medicaid and Social Security. The GAO projects that payouts for these programs will significantly exceed tax revenues over the next 75 years. Net result: An Even Higher Tax Debt.)

Wake up America…time is NOT on your side, especially if you’re 40 years of age or older.

The economy is undergoing a fundamental change that signals less…not more prosperity. Most assuredly there is an increasing burden on individuals to shoulder more of the responsibility for their own financial future.

Younger, more mobile workers are being forced to build a retirement plan piecemeal, as they move more frequently from employer to employer. But, what about older workers who have just seen their retirement dreams blown to bits by the Wall Street investment banks? For many, there will be NO retirement.

And, the stock market WILL NOT recover fast enough for you to make up for all those losses. The Baby Boomer generation just became the Yo Yo generation (You’re On Your Own).

However, DO NOT DESPAIR. You have options. You can pull your retirement funds out of Wall Street (stocks, bonds and mutual funds) and move into an account that will allow you to invest in Main Street. In other words, invest into what you know by setting up a Self Directed IRA or 401(k) plan.

You’ll be able to invest in Commercial, Residential or International Real Estate,  Mortgages, Notes or Tax Liens. Or, you can invest in the Stock of a Private Company, buy a Franchise, or start a Business. And, there are many more options allowed by the IRS code.

Making the right investment choices will be the challenge. But, it’s a challenge worth pursuing because NOBODY is looking out for YOU.  You’re the only one who can do anything about your dilemma. So, get engaged now.

We’ll help you to navigate these very difficult and challenging times by helping you set up a Self Directed IRA, Checkbook IRA, Real Estate IRA, Solo 401(k) or Business Funding IRA.

The time to take control of your own retirement investing is now.  Contact us today to get started.

Safeguard Financial
www.IRA123.com
877-229-9763

While real estate prices may not quite have touched the bottom, foreign investors, including Canadians and Chinese, are snatching up bank owned, foreclosed and distressed properties all over the U.S.

Recently, CNNMoney.com, published an article entitled “Here Come The Real Estate Vultures”. The article stated “these are tempting times for real estate bargain hunters. Whether it’s the tony house down the street with an asking price that keeps dropping or office space at a deep discount, if you have the means, there are deals to be had”.

Not since 1976 have Canadians been able to participate in a meaningful way in the U.S. investment market. But, that’s all changed. The Canadian dollar is currently at par with the U.S. dollar and property values in the U.S. have plummeted, causing it to be a perfect time to buy.

Canadian investment in U.S. real estate more than doubled in one year, from 11 percent to 23.5 percent, making Canada the largest foreign real estate investor in the U.S. (Source: Sierra Vista Herald www.svherald.com)

ABC News reports that many wealthy Chinese have signed up for real estate tours of major U.S. cities wanting a piece of “mei guo”…the beautiful land. They’re buying foreclosed homes, high rise condos and real estate in the path of growth. It’s all about location, location, location.

And, Realtors aren’t waiting for the Chinese to come here, they’re setting up shop in China, equipped with home models, DVD tours and brochures to make the sales. (Read the ABC News report at ABCNews.com.)

It’s clear that real estate opportunities are abundant and now is the time to take the plunge and pick up some bargains for a Self Directed IRA/401(k) portfolio. For savvy investors, this is a once-in-a-lifetime proposition.

We have worked with dozens of investors in recent months who are picking up fantastic, rent-ready, near-new properties for less than they cost to build.

We can have you up and running in 20 to 30 days with a Self Directed Real Estate IRA. Contact us today to get started.

Safeguard Financial
www.IRA123.com
877-229-9763

Yes, these are difficult and challenging times for the investment real estate market, but it would be a mistake to characterize all real estate as being too risky to consider.

Real estate is “local”.  So, while there may be areas of the country that should be avoided, savvy investors are seeking out real estate investment opportunities that offer the potential for accelerated growth in their portfolios.

Flipping houses still has profit potential. However, the best strategy is the old standby of “buy and hold”.  And for retirement investors who want to use a Self Directed IRA to own real estate…time is on their side.

With a Self Directed IRA (sometimes referred to as a Real Estate IRA with checkbook control), an investor is in complete control every step of the way. With this type of investment structure, the investor can decide how, when and where to invest.

Probably the best reason for jumping into the real estate market right now is that it’s unlikely that prices will go much lower. And, the current surplus of homes will be absorbed in the next few years and prices will start to go back up.  So, even though timing is important, waiting for the absolute bottom is really not a very good idea.

Do your homework, invest smart, and you can mitigate much of the risk that can be associated with real estate investing. Also, using a Real Estate professional who is familiar with the area you’re interested in is also well advised.

So buckle up, jump in and hang on. Your best bet for making money in this market is investing in what know…down on Main Street USA.