The old saying "cash is king" is very popular when it comes to real estate transactions. During this period of economic uncertainty and banking difficulties, real estate sales are down because of the lack of cash in the market. The average days on the market for real estate listings is growing every month because, even though it is a buyer's market, financing is becoming increasingly difficult. Money is tight.
The real estate investor should be salivating at some of the "deals" out there. Frustrated sellers have lowered prices to bargain basement levels. The "blue light" is shining in the market with all the specials going on. Cash is needed to take advantage of the low prices and is also a great bargaining chip for even better deals during negotiations. Where is the cash!
A report put out by the government in the spring of 2008 reveals some very interesting statistics. At the end of the 2004 tax year:
- $3.3 TRILLION in IRAs
- Average IRA account $64,758
- Average account for people ages 60-70 was $112,913
Source: Matched file of income tax returns, Forms 5498 and 1099-R for Tax Year 2004 by the Individual Special Projects Section of IRS 2008.
If properly administered, this cash is available for real estate investment.
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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