Whether you believe it or not, Real Estate is the catalyst that drives our economy. Where I live in Southwest Florida, real estate is going gang busters again in terms of sales.  This is good for a struggling economy, because new home purchase require new furniture and more importantly repairs and remodeling which will help invigorate the battered building industry.

For investment real estate now is the time buy, the prices accurately reflect the going rents and properties can cash flow nicely again.  It continues to be a buyer's market no matter how you find d these properties via short sales or just great deals.  Unfortunately there are many displaced families that need rentals, this will fill vacancy and keep the rental market strong.  This trend will continue throughout the country. 

The hidden gems that I am surprised more investor have not embraced are forecloses and the purchase of tax certificates.  Investors know that the money is made on the purchase of the asset.  With Foreclosures real estate can be purchased on fraction of their original value and with the glut of foreclosure sales that has never been more true.  Tax Certificates in Florida are also the rage again.  After years no availability and low returns there are more certificates than buyers in many Florida counties.  Tax certificates can have returns as high as 18%. 

So how do get the capital for these great real estate deals.  The answer is easier than we know.  Self Direction is the up untapped gem of current economy.  Diversification of your portfolio is more critical than ever.  Diversification does not mean just various mutual funds, it now includes real estate, private stocks, and private LLCs.  Self Directed Retirement accounts give individuals the opportunity to control their retirement funds and have unlimited options.  Millions of dollars are sitting on the sidelines in IRA funds looking to find suitable investments. For more information on Self Direction go to the nation's largest Self Directed Administration,  Entrust's website at www.theentrustgroup.com.

If you would like more information on any of the information presented, please feel free to email me and I will get you more information.

Dave Owens, CPA is a specialist in real estate taxation.  He can be reached at 239-333-1031 or email at him do2009@1031company.com.