There is 4.6 Trillion, with a "T" in IRAs in America. Most of them are losing their shirts and skirts in the stock market. 90% of them do not know there is another choice. Most don't know you can invest in real estate with an IRA. HELLO....any realtor hearing me...46 million IRAs worth 4.6 trillion dollars, all looking for advise on what to do.
Realtors need to learn about self-directed IRAs. If you don't know , get schooled, Try Equity Trust or the Entrust Group for Q and A's, both have great websites. Your currrent clients have money to spend with you, if you get the knowledge on how they can spend it investing in real estate. Real Estate investments? in this market? Yea buddy...This is the best time to buy real estate in their IRAs. Discounts are huge. Help them buy foreclosures and short sales. Get rid of those dog stocks, they all hae fleas. Who knows which company is going to bite the dust next.
Put your clinets in good ol' fashion, solid, rental real estate. My pick...Single Family homes under $120,000. They will rent in most cities for $900 per month, after tax and insurance, should net the investor about 8% return on investment. And all the rent goes back to the IRA tax deffered in a Traditional or Tax FREE in a Roth. They can pay cash from the IRA for the house or some lenders will loan up to 60% LTV and the IRA puts up the down payment.
You can also sell Land to your clients IRA. This doesn't take as much money, but usually purchasing od land requires all cash andd the client can't add funds if the IRA is short. Don't you all wish you had bought a lot in your neighborhood 10 years ago in your IRA.
They don't want the management headache? I'll bet there are some good real estate agents and offices out there that would be glad to have another revenue source. Now you get the sale commission and the management fee! Your new motto should be...Quit your cryin'... you should be buyin'. Thats right, Buy when people are desperate to sell.
Do you realize you can buy Options in your IRA? Thats a whole other seminar in itself. Think creatively.
So heres the steps:
1. Get schooled, many real estate investment clubs have speakeers on IRA investing. If you don't belong to your local REIA you need to. google, National real estate investor association. If not there are plenty of books and CDs on it. You don't need to be an expert, just get the gist of it, the custodian is an expert.
2. Move your IRA to a self directed custodian so you can buy some deals. If you do it , your clients will follow suit. It shows commitment on your part. You can't ask them to do something you wouldn't do.
3. Start getting a property list together of great deals they can buy
4. Hold a IRA seminar at your office to introduce the concept to your clients. You will be the savior. You'll probably end up with many of your competitors clients.
If you keep doin' what you're doin', you'll keep gettin' what you got.... do something different.
Go get 'em. Thanks again, Marcus Cutrone - marcuscutrone@gmail.com
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