Throughout the Goose Creek Charleston SC area there are numerous investment properties available. Assuming an investor as a substantial savings in an IRA, it is very possible to buy a rental property without obtaining loan and or at minimum a small mortgage. Either way, by buying purchasing the rental property at the best possible price and terms, the property should be able to cash flow very easily. By buying in this current market, homes prices are at historical lows and it is very good chance the market has finally hit bottom.
Leveraging IRAs with mortgages. Retirement savers can take loans to buy rental property
The Wall Street Journal, Market Watch, By Chris Pummer - Last update: 6:36 p.m. EDT April 2, 2009 - Third of three parts - SAN FRANCISCO (MarketWatch) -- So you'd like to take advantage of depressed housing prices and buy a rental property, but you lack a down payment or can't meet lending criteria for investment properties? Consider using your IRA assets -- even if the purchase price exceeds their reach. Little-known IRS rules allow retirement savers to take "nonrecourse" loans against IRAs and leverage their savings as a down payment to buy investment real estate. With 30% to 40% down, IRA borrowers can get loans on a condo or townhouse, a single-family home, a multiunit apartment building and even commercial property -- so long as the rental income will yield positive cash flow.
While the market for these mortgages has been miniscule -- recognized leader North American Savings Bank (NASB:25.14, +0.26, +1.1%) has closed about 850 residential IRA loans since 2005 -- demand is expected to mushroom in coming years, especially among baby boomers seeking to diversify out of stocks and into income-producing investments.
Eager to lend Unlike cash-hoarding banks today, lenders in the IRA nonrecourse loan market are champing at the bit to extend mortgages. The reasons:
- By putting up coveted retirement savings, IRA borrowers have valuable "skin in the game" and are less likely to default on their loans
- Most IRA-backed loans made today are on foreclosed properties bought at steeply marked-down prices rather than the risky hyperinflated prices of three years ago
- The minimum 30% down payments give lenders a considerable downside allowance in the event they must take back a property and resell it
To read the rest of the article, http://www.marketwatch.com/news/story/how-leverage-your-ira-property/story.aspx?guid=D6FDDEAF-8281-43C2-BF8B-02EDBBC4618E
For more information on Buying a Home in Hanahan & Goose Creek, SC and Surrounding Areas contact Matt Naumann, your local local buying expert on Foreclosures, REOs, and Bank Owned Properties.
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