For the millions of people who've been layed off because of corporate downsizing, there is one bright spot. . .you can likely rollover the funds in your former employer's 401k into a self-directed IRA. This gives you lots more options in addition to the usual stocks and mutual funds. And, this can be done with no early-withdrawal or penalties. A custodian who has a wealth of experience and has a good track record with us in helping people with rollovers is Equity Trust Company.
We have been talking more and more lately with fellow Realtors in our local market and throughout the country about the importance of working with an experienced professional who has helped investors through the process of the rollover and all the way through purchasing real estate in their self-directed IRA.
We'll provide a case study below about how you can purchase a turn-key rental investment in Kansas City with your self-directed IRA and keep it as a long-term rental property.
The property will have approximately 25% in instant equity. Based on it's net operating income, it's set to be paid off in less than 10 years. Your IRA can purchase the property before or after all the repairs have been completed so that it's ready to rent. For this example, let's assume you purchase it when it's ready to rent.
Retail price: $80,000
Your self-directed IRA purchases the property at a discount: $56,000
Instant Equity: $24,000
Gross Rental Income: $8,400
Less 10% Vacancy: $840
Effective Rental Income: $7,560
Less Operating Expenses (taxes, maintenance, insurance, property management): $2,612
Net Operating Income (NOI): $4,948
Cash-on-Cash Return: 9%
How many years will it take in NOI to replinish the initial investment of $56,000? 11 ----- YEAH!!!!!
This is an example of what you can do with real estate in your IRA. Obviously, the numbers can and probably will vary based on market conditions, rent increases, vacancy fluctuations, etc.
For more information about how to invest with your self-directed IRA with Kansas City real estate investments, contact Paul Surles at 913-488-7588 or e-mail me at psurles@gmail.com. We also have information about Kansas City real estate investing, earning passive income with your self-directed IRA and much more on our website.
Just a quick post here to let you know we're not sure how much longer this lender will be offering this program for Kansas City single-family to 4-plex investment properties. If you've been wanting to add to your existing portfoltio and have been limited because of financing this might be the opportunity you've been waiting for. Following are the terms the broker provided to me, so take a look these and then look at our website to see which properties you'd like to take a closer look at acquiring.
•· Lender will loan up to 75% of the After Repaired Value! This can be a ZERO down payment loan. Yes, ZERO!
•· Funds available for long-term hold.
•· Great program for experienced investors with good credit (680+), cash reserves, and verifiable income.
•· Individual loan for each property. This is not a blanket loan.
•· Sample terms:
•o 7.5% interest
•o 5-year fixed term
•o 30-year amortization
•o Estimated $1,250 in closing costs, excluding origination fees
•o 1% origination fee to lender; 1% origination fee to mortgage broker
Are you looking to buy an investment property and need a buyer's agent to help you get it with this program? Let's talk about what you're trying to accomplish and see if together we can make it happen.
For more information about real estate investing in Kansas City with traditional lending or with your Equity Trust Company self-directed IRA, contact Paul Surles at 913-488-7588 or Paul@PaulSurles.com.
Looking for a Johnson County home in the Blue Valley School district or Olathe school district to live-in? Visit www.PaulSurles.com to search available homes.
Paul Surles
Realty Resource, LLC
913-488-7588
www.MetroREOSales.com - search investment properties
www.PaulSurles.com - search homes to live-in
I could hardly wait to write this post because it's been about a year since I have heard anything close to what my new mortgage broker contact has to offer. Have you been wanting to purchase more residential rental properties in Kansas City but couldn't because of financing? Take a look at the following terms the broker sent to me and look at our website to see which properties you'd like to take a closer look at adding to your portfolio.
•· Lender will loan up to 75% of the After Repaired Value! This can be a ZERO down payment loan. Yes, ZERO!
•· Funds available for long-term hold.
•· Great program for experienced investors with good credit (680+), cash reserves, and verifiable income.
•· Individual loan for each property. This is not a blanket loan.
•· Sample terms:
•o 7.5% interest
•o 5-year fixed term
•o 30-year amortization
•o Estimated $1,250 in closing costs, excluding origination fees
•o 1% origination fee to lender; 1% origination fee to mortgage broker
Are you looking to buy an investment property and need a buyer's agent to help you get it with this program? Let's talk about what you're trying to accomplish and see if together we can make it happen.
For more information about real estate investing in Kansas City with traditional lending or with your Equity Trust Company self-directed IRA, contact Paul Surles at 913-488-7588 or Paul@PaulSurles.com.
Looking for a Johnson County home in the Blue Valley School district or Olathe school district to live-in? Visit www.PaulSurles.com to search available homes.
Paul Surles
Realty Resource, LLC
913-488-7588
www.MetroREOSales.com - search investment properties
www.PaulSurles.com - search homes to live-in
Ever since I started providing practical tips about short sales to fellow Realtors here in Overland Park and the Kansas City area, I've had numerous agents and potential clients contact me for more advice. So, I thought I'd post a link on my website and scroll down to Foreclosure Avoidance for more info. This is an 8-week series, so check back often for timely tips.
Contact me at 913-488-7588 or through my website if there is anything I can help you with here in the Kansas City market . . .or nationwide. I have an extensive referral network so if you're in another part of the country, perhaps I could connect you with a local contact who can assist you further.
Here's what I contributed in this week's publication. . .
Q. What are the seller's options if a short sale is rejected by a lender?
Paul: One of the most common reasons lenders reject short sales is because the purchase offer was too low and didn't meet their criteria. Often times, the lender will go back to the listing agent and ask him/her to go back to the buyer and attempt to get a better offer. They generally need a minimum "net proceeds" amount on the HUD after all fees and commissions are paid.
Another option sellers and listing agents should consider is to ask the lender if they would agree to an unsecured promissory note between them and the seller for any difference in the proceeds between the buyer's offer and what they need to have. Often the terms are very attractive and the seller would have several years to repay the note.
There are other options in addition to a short sale that sellers should consider to avoid foreclosure. I always recommend sellers seek advice from a tax professional and/or attorney to help them decide whether a short sale, deed-in-lieu of foreclosure or loan modification would be a good option based on their individual circumstances.
Most of you have known me as a real estate investor here in the Kansas City metro as seen on our investor website www.MetroREOSales.com. Some have said that since I have a lot of experience buying and selling real estate for my company and other investors, I should expand to provide Realtor services to retail buyers and sellers for homes they buy/sell to live-in. Especially right now because of the incentives for first-time homebuyers. So, let me know if you're thinking about buying or selling anytime soon. . .or know of someone else who is.
Well, I've listened and have created a new top-notch website www.PaulSurles.com and an exceptional "commitment to green" internet marketing plan to help people sell homes for top dollar in Overland Park and surrounding areas.
What makes Paul Surles stand out among the thousands of Realtors here in Kansas City? Well, let me know what you think about this excerpt from our website. . .
"Feel good about choosing us to sell your real estate for top dollar because proceeds from our transactions go directly toward helping improve the quality of life in Kansas City inner-city neighborhoods. This is what sets us apart from the competition.
The largest initiative underway where proceeds are being directed is toward providing financing through Home Run Properties, Inc. to local providers who are upgrading inner-city homes as a result of President Obama's recent American Reinvestment & Recovery Act (ARRA) stimulus funding in Kansas City. Our commitment to other neighborhood stabilization initiatives include purchasing and remodling homes for familes to rent or purchase."
Even if you're not in the area, we would help you with getting a Realtor referral where you live or are going to live. Proceeds from referral transactions count to! See more about homes in Overland Park and the Kansas City metro on our website. Contact us today at www.PaulSurles.com.
Have a great Labor Day Holiday!
Paul Surles
Feel good about choosing us to sell your real estate for top dollar. Proceeds from our transactions go directly toward helping improve the quality of life in Kansas City inner-city neighorhoods.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
