HOW TO GROW YOUR IRA WITH REAL ESTATE IRA INVESTING

IRA investments in real estate are becoming increasingly popular. The leading IRA investments have always been stocks, mutual funds (which rely on the stock market) and certificates of deposit, but the struggling economy calls for new ideas, especially if you want to grow your retirement wealth quickly. And who doesn’t?

There is little risk in IRA real estate investing if you do the right deals. Property values are struggling right now, but that could be a good thing if you’re buying.

Stocks are riskier than ever. If you listen to the news, you will see that everything is working against the market. Large companies report little or no growth. Personal income goes down. People don’t spend money. You just can’t afford it. equity crowdfunding real estate Depending on the case, everything trickles down or up.

Real estate agents always advise you to be patient. The market will recover, but there are no guarantees.

Diversification is the real key to the steady growth of your personal portfolio. Mutual funds, one of the other leading IRA investments, are really just a group of stocks, typically from a single industry. Brokers suggest mutual funds as a way to diversify, but these funds carry the same risks as regular stocks.

While there is no real risk involved with a bank certificate of deposit (they are guaranteed by the federal government), the returns are small. If you buy a $25,000 CD with a 3.5% interest rate, your return is $875 per year. That’s not enough to get you into retirement, and you could even lose money to inflation.

Real estate investments can generate enormous returns in a relatively short period of time. You’ve probably seen infomercials where “everyday people” make hundreds or thousands of dollars on a single deal.

It may sound too good to be true, and the disclaimers warn that results are not typical. But the truth is that there are millions of dollars to be made in the real estate market. Some financial experts are calling the market for retirement savings accounts “largely untapped.”

If you want to “exploit” this niche, you’ll need a few things; Money, time and knowledge are some of them. But something you must have is a self-directed IRA with a brokerage firm that offers its clients the opportunity to invest in real estate.

The government allows it, but many brokers only offer the leading IRA investments. Finding the right broker can take a little time, but it’s worth the effort. Just make sure the trustees are familiar with the relevant tax laws.

At some point in the near future, IRA real estate investing is likely to become the leading investment decision. But if you start now, you can stand out from the crowd and enjoy a safe retirement.

Buying Real Estate in New Orleans – A Contrarian’s Mindset

Buy real estate in New Orleans. No, I have no intention of actually buying real estate in New Orleans, although it might be a very good idea. The point is that it’s a good example of how extremely successful investors think.

You see, most very successful investors are contrarians. A contrarian is an investor who consciously chooses to go against the prevailing wisdom of other investors. Contrarians will not follow the crowd. In fact, they invest in everything that is avoided by the majority of investors. That’s where they know they can find value. There they know they can make huge profits.

Contrarians are the kind of investors who would be looking for New Orleans real estate and stocks in New Orleans companies when conventional post-Katrina wisdom holds that New Orleans is a disaster area that should be avoided at all costs and never be should recover.

Contrarians bought Google (GOOG) when it first went public in 2004 for $85. The conventional wisdom was that Google wasn’t worth more than $85 a share. Contrarians looked at Google’s pristine balance sheet, factored in the fact that the company had a business model that dominated the internet, and bought. The rest is history. Google shares are up over 400% from the original offer price.

Contrarians bought oil in 1999 when crude was less than $15 a barrel — there should be an oil glut, you know — and the crowd bought ridiculously overpriced dot-com stocks.

And now I’m sure fundraisingscript there are some future billionaires who are serious about investing like New Orleans real estate.

Michael Lewis, writing for Bloomberg, has written a very interesting column on the wisdom of being a contra. The final sentence deserves special mention:

“But somewhere in New Orleans someone is about to commit murder. Somewhere, there’s a hedge fund manager secretly buying up real estate in New Orleans, or a venture capitalist quietly starting a New Orleans fund, or a 26-year-old — would be an entrepreneur who, after graduating from business schools rejected at Harvard and Stanford, decides to build his empire from the rubble.

0