Real Estate Investing
Posted on Wednesday, May 30th, 2012 at 10:55 am.
“After four months of frustration and struggling with another company I turned my property over to Tim Emery at Stix and Stones. He had the property rented in less than 24 hours for a higher price than expected. They are very prompt and very professional. I highly recommend them.” – Eric L.
We love to receive comments like this! Thanks Eric.
When you hire a property management company you want them to be experienced. You want them to know how to get your investment rented fast and to find good tenants. We have over 30 years of experience in the rental business. We own our own rentals and manage our properties. We try and find tenants who will pay the rent and stay long term.
Call us today to find out how to get your properties rented with good tenants.
Posted on Monday, August 9th, 2010 at 10:58 pm.
Do you want to diversify your retirement savings in your 401(k) or IRA to get some of that money out of the stock market & into Real Estate? We’ll, it’s easier than you think!
Leveraging Your Money
One of the huge advantages of owning real estate as an investment is that you can leverage your money to create greater returns. If you want to buy $100,000 of Microsoft stock, you generally need to fork over $100,000 of cash and so you don’t have any financial leverage in your investment. In real estate you can leverage your investment because you only have to fork over as much of a down payment as your lender requires and you can finance the rest which creates financial leverage. Let’s say you put 20% down on your real estate purchase, that’s only $20,000 of your cash to purchase that same $100,000 investment. Now, if the value of your Microsoft stock increases to $150,000 what’s your rate of return? In simple terms, it’s $50,000 on a $100,000 investment so your return is 50%. If your real estate investment increases that same $50,000 but your cash investment is only $20,000, then your return is 250%. Which is better for you? That’s the power of leverage and it’s used all the time by companies and investment firms to turbo charge their results. So what does this have to do with your IRA?
Buying Real Estate in an IRA
It is absolutely legal and relatively easy to purchase real estate in your IRA, however, there are some rules. On of the main rules is that you can’t have any self dealing with your IRA funds otherwise you can lose the tax advantage of the IRA. For example, you can’t personally guarantee a loan for your IRA so if you wanted to buy a piece of real estate for $100,000 but only had $50,000 in your IRA, you were stuck. The solution in the past was to use a non-recourse loan in which the lender didn’t require any personal guarantee. The problem was that in the real estate market the last few years, no one trusted the real estate investment so non-recourse loans were hard to come by and very expensive.
Cheaper non-recourse loan are back!
Now, with the real estate market improving, lenders who specialize in non-recourse loans are back in the market and looking for those IRA dollars for lending opportunities. North American Savings Bank in Leawood Kansas has recently announced that they are decreasing rates and loan origination fees for non-recourse loans used to purchase real estate inside of IRA’s. According to Jason Zook of North American Savings Bank, they have lowered loan origination fees back to 1% and have 30 year non-recourse loan as low as 5.875%. These rates and fees have not been seen since December 2008.
We’re here to help!
If you’re interested in learning more about buying and financing real estate using your retirement funds, please call Craig Becker at 303-770-2409 and we’ll show you how diversifying your retirement savings into real estate and leveraging the funds in your IRA can mean lots of extra retirement dollars when it’s time to retire.
Craig Becker is the managing broker for Stix & Stones Fine Colorado Properties, a Certified Public Account and expert in real estate investing.
Posted on Monday, May 17th, 2010 at 4:42 pm.
Stix & Stones Fine Colorado Properties is pleased to announce the formation of our Denver Property Management Division headed by Lance Becker, Broker Associate with Stix & Stones. Our goal is to help you with professional property management services in Denver or the surrounding areas such as Centennial, Littleton and Aurora or help you manage your properties with advice and information.
Call Lance Becker anytime at 303-770-2409 for more info or simply to ask a question. We’ve been self managing our portfolio for over 30 years so we probably help with ideas and suggestions.
Stix & Stones Resource Center
We strive to provide the most relevant and up to date information on the Colorado real estate market and real estate topics. Check back often for new posts and updated information. You can also track us on Facebook or follow us on Twitter.
- Update on the market- Rental and homes
- Kind Words From a New Property Management Client!
- Rental Market? Is it good right now as an Owner?
- Home Purchase Plan Request Form
- Fed Announces LARGE TREASURY PURCHASE!
- September Improving, RATES ARE CRASHING!
- August Market Steady…Rates DROPPING!
- IRA (non-recourse) Loans More Attractive Everyday