Oro Valley, AZ

How to Buy Real Estate with your IRA or Retirement Plan Funds

What a year 2009 is turning out to be! A new president, economic challenges, some big corporations closing their doors, and the stock market debacle...Isn't it time for a glimmer of hope? Well, that hope is here in the form of real estate.

With the economic downturn, there are foreclosed homes and depressed real estate prices everywhere you look, which has created opportunity with enormous upside. In fact, many houses can now be purchased for 25% or less of their recent value!

Individuals with liquid funds are already purchasing these properties in droves. But what is you don't have liquid funds? Then use your IRA or retirement plan funds!

Benefits of Purchasing Real Estate in your Retirement Plan

Your money grows three ways while owning real estate in your retirement plan:

1. Through the increase of the value of the home appreciation
2. Through the accumulation of rental income
3. Through tax-free growth

How Buying Real Estate with your IRA or Retirement Plan Fund Works

Purchasing real estate in an IRA has been allowed for over 30 years under the ERISA Act of 1974. Most people don't know that they can do this because the brokerage houses typically earn fees on commissions or assets under the management, and don't want to offer Real Estate IRA's because they can't make money off of them.

Regardless, Real Estate IRA's allow you to purchase real estate with your retirement money, and currently constitute about 3% of retirement plan holdings.

Because they are retirement plan, Real Estate IRA's must be set up with a qualified administrator and abide by a few simple rules (see a list of recommended administrators, and links for the requirements, at (http:www.retrainingcenter.com/About-Buying-Real -Estate-In-An-IRA.asp) or (entrustarizona.com).

How to Get Started

Below are a few simple steps to get started:

1. Read and Research. Make sure you understand the rules and requirements of a Real Estate IRA. You'll have to set up an account with a qualified administrator, not commingle funds, and abide by a few other rules. You can use the above website to find a qualified administrator.
2. Find the Right Properties. Don't just buy houses because they are cheap. Make sure you have a plan as to where you want to buy, why you want to buy there, and whether or not you will rent the properties. Use your Realtor for guidance.
3. Know your Personal Temperament. You'll not only have to spend tine selecting and closing on properties, but depending on how many you purchase and for what reason, may want to rent out your new properties. Make sure you know your requirements and capabilities.

Richard Lecinski

Long Realty Company

520-834-4663

http://rlecinski.longrealty.com

www.arizonagreatliving.com

The granite promontory (above) is the identifying feature of Pusch Ridge, an upthrust of rock that runs north from Tucson to Catalina, AZ, and overlooks Arizona's Catalina State Park. This photo was taken from the community of Honeybee Ridge in Oro Valley, AZ.

Pusch Ridge is home to the last surviving herd of wild Desert Bighorn Sheep in the greater Tucson area, and perhaps in all of southern Arizona.

The ram on the right lives at the Arizona-Sonoran Desert Museum (one of the ten best zoos in the world.)

If you're thinking of making Tucson or one of the surrounding towns your retirement home, subscribe to my blog and give me a call.

7/4/09 EDIT: I received an email from John Peters, Jr. with the following info about Desert Bighorns on Pusch Ridge:

"...there have not been any bighorn sheep on Pusch Ridge for years. Despite numerous flyover and foot searches, no sheep have been spotted. Speculation is that the mountain lions took them out."

___________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.

Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090

Photos copyright Mike in Tucson

Among the many issues in Oro Valley is the wall sign issue for businesses. On July 7th at approximately 6:15 pm at 11000 N La Canada the town council will be requesting an approval for an amendment to the Oro Valley Zoning Code. The amendment will permit wall signs to be illuminated until 10pm or to be truned off immediately after closing which ever is later. Many businesses feel, and the local chamber of commerce supports them, that they should be allowed to have their signs illuminated from DUSK to DAWN. It is like most advertising, even if the store is not open they want their name out there for recognition. The lights still have to meet code so they are dark sky friendly. And, they want to have the same rights as their national competition who are often able to stay open more hours a day than the local business owner. IF you can spend an hour to support the local businesses come to the chamber meeting. What is good for local business is probably good for your businss too. Let freedom ring, Happy Fourth of July.

We here it all the time. "Big box" stores are putting the "mom and pops" out of business. Now I admit, I enjoy shopping at Wal-mart or Home Depot once in a while, but there is something to be said for local business owners. They know their product and their customers.

My friends John and Alice Corbett own a running store in Oro Valley called All About Running and Walking. When I first started running a few years ago, they fitted me properly and hooked me up with my first pair of good shoes. Over the years I have stopped and started running due to various injuries. Last week was a "start again" week, and it was time for new shoes.

Now I know better, but I shopped the Nike outlet, Dicks, and Sports Authority just to see what they had. Nike had good prices but as far as I could tell, no technical shoes. When I asked about a neutral shoe with lots of cushioning, I was met with a "deer in the headlights" stare.

Moving on to Sports Authority. Nice guy with Manager on his name tag was very helpful. I explained that I did not pronate and liked a lot of cushioning. He knew what this meant (a good start), but when I mentioned that I had an IT band issue that kicks in around the 4-5 mile mark, he didn't know what I was talking about.

On to Dicks. By now I realized that I should have gone to AARW in the first place (duh), but Dicks carries a brand that I had never tried, and I wanted to see how they felt. On two separate occasions, I could not find anyone to help me. On the second visit, I was clearly standing around waiting to be helped, and employees ignored me. Corporate will be getting a letter from me.

Back to AARW. John greeted me by name, knew what shoe I previously purchased from him over six months ago without looking it up and remembered my IT band issue and asked about it. Then he asked how many miles I was currently doing and it I was running intervals, and at what rate. He then brought out the perfect shoe and showed me a way to lace them that would be better for me.

Long story short - the person that knows and listens to their customers will win in the end. Doesn't matter if you are selling shoes or houses.

OK, I have to admit it - this is my idea of a good time. Lounging poolside with a wonderful mountain view!

Welcome to Tucson, and the El Conquistador Golf and Tennis Resort.

The El Conquistador is a destination resort for visitors to Tucson and Oro Valley, as well as a hangout for locals. Great dining, nice lounge, excellent Forth of July events, and a spectacular view of Pusch Ridge are just a few of the many reasons to visit this amazing property.

The resort is surrounded by wonderful homes and townhouses for both full time residents and winter visitors.

Summer is coming and it's a great time to buy! Give me a call for a tour of the resort and surrounding communities.

Tucson Dawn