It seems to me that a social conscience real estate investor can real make a difference in a community. Back in the "good old days" the local bank was the cornerstone of the community. The bank was the custodian of local deposits that provided the cash needed to fulfill dreams and aspirations or starting a new business and buying a family home. When someone needed money to build or buy a four unit apartment building to provide solid afordable housing, the bank was eager to work with them for the financing.
Things have changed. Money is tight and when you find a financial institution that has loans available, the "hoops" and road blocks are becoming more frequent.
Private loans and investment can make that difference I mentioned. Especially private money that has seen disappointing returns in the stock and bond market. An investor with funds in an IRA or IRA rollover can provide loans secured by real estate through a mortgage note at a respectable rate of interest or even through an equity position with even higher possible return. One thing we know about real estate, it may have some volitility but will always be worth something. How many investments in large well known corporations have gone to zero over the last year?
Providing the necessary cash to the real estate investment community, homes in depressed neighborhoods can be brought back to life and sold or rented. Individuals coming close to forclosure may have a "white knight" invest in their home and then allow them to rent it back until they are back on their feet with an improved credit rating.
If the real estate investment community takes a look at the big picture, great things can happen.
Scott Grund is a real estate agent in Greenwood, SC specializing in investment real estate utilizing the tax advantages of Self Directed Retirement Accounts. Scott can be emailed at scott@ScottGrund.com or contacted by phone (864) 554-4190.
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