I’m seeing more single family home transactions closing with investors rather than just homeowners who will owner occupy the property. This is a prime time for homeowners to jump in with both feet and become an investor.
Everyone has lost money in their retirement accounts and the most reasonable way to recoup those funds would be to take advantage of today’s unbelievably low interest rates and home prices.
The rental market is strong and single family homes will be appreciating, if they haven’t started in your area already. Purchasing a single family home to rent is a smart way to replace lost retirement funds. The property will have many tax benefits and in 5 to 10 years, the property can be sold with the profits replacing lost funds.
My team members are focusing on this niche area, and we have many pending sales at this time with new investors buying single family homes to be rented. If you haven’t tapped into this market yet, now is the time. Folks in their 30’s to 50’s are prime candidates for this scenario. They have all lost money in their retirement accounts and they don't know how to replace it. Discuss this topic with everyone, and you’ll be doubling your closings in the future.
15 Comments on Replace Lost Retirement Funds With Future Real Estate Equity
No doubt Barbara. If one can afford to invest, there really isn't any better time to do it than now. Interest rates are crazy low, tons of inventory and the rental market is HOT HOT HOT! Great post!
It is hard to get people off the stock market pogo stick and into real estate investing.
The stock market is now controlled by computers with triggers. They sell millions in seconds and buy billions in minutes. It's hard to compete as a small investor. Not so with real estate...
Brenda....investing in a single family home for 5 to 10 years will allow many benefits.....tax benefits and a chunk of change when you sell....
Paul....diversification....this is a great time to buy real estate and if a family or individual does not have one investment property, now is the time....just one property to rent and it will gain equity in the long run....
In our market, rents are increasing substantially faster than real estate appreciation - at least in the short term. Might as well gain the current cash-flow while waiting for the added benefit of appreciation - which WILL happen ultimately.
Wendy....that's great....if the investor can buy a property and it more than pays for itself, what a deal....
Anyone that is looking to invest in real estate should consult with their CPA and financial advisor FIRST!
Kathy...yes, that's good advice, for sure....
This is very true. For the folks who unfortunately have had a short sale or foreclosure recently and cannot purchase again for many years, renting is the only option at this time. The rental market should be very strong for at least another 5 to 7 years.
Barbara, I think you've nailed it. There is opportunity in areas with low vacancy rates. Of course, due diligence by the buyer is essential, so they buy the right property at the right price. I've reblogged this.
The rental market is very strong in our area for single family homes and condos. This is a great time to be an investor. Real estate is a long term investment and we'll be many, many years before this market turns around. It's wise to take advantage of the today's rental market.
Donna....thank you so much for the reblog....I always appreciate that....our area has a great demand for rentals, especially single family rentals....
Homes in my market purchased as rentals often have new renters lined up before the property closes escrow. Typically rent will cover the mortgage and provide a small maintenance fund.
Hi Doug....I think most areas have a strong rental market.....there are so many families that have been forced to rent for a few years....
Barbara, I wholeheartedly agree. I have rolled my IRA into a self directed IRA and have bought 3 investments YTD.