Category Archives: Investor

Use a Self Directed IRA to buy rental income property

This post was published 5 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

Do you believe that what’s happening in Cyprus can’t happen here? That they can’t arbitrarily take your savings from a bank to fund the deficit? The “haircut” proposed for trusting Cypriot savers may be limited to the Eurozone. Or not. But you can’t help wondering if it might be better to own real property, real estate for instance, over having some ephemeral financial instrument investment in which to put your nest egg. If so, you might consider using a Self Directed IRA (SDIRA).

In short, you use a trust to handle the funds. Your investment property is selected by you, but it must be held/used “at arms length.” So you can’t rent to yourself, or a relative, or your business. We’ve helped investors successfully use this strategy to diversify their retirement money into real property. And rental income property is starting to look very attractive. Can a government take 15% of a real object? I don’t know, and neither do you. But it has to be much easier for them to electronically give your savings funds a “haircut” in some monetary financial instrument.

Here’s an excellent article about SDIRA and REITs. Click on the thumbnail for more:
SDIRA info
Below, is a link to a trust company with whom we have had good results in the past for SDIRA. You are invited to find your own alternative, and shop around. But this company has good info online for you to consider. Note that we are not paid or otherwise compensated by them, or any company we feature here at ReddingHomesBlog.
SDIRA2Make sure the only haircut you get is on your hair.

Where to find local foreclosure deals?

This post was published 7 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

The Record Searchlight had a great article today about local people investing in foreclosures. Where would you go to see local foreclosure homes for sale listed all in one place? We humbly suggest the link below:

Stock market squeezing your retirement? Flee to real estate.

This post was published 7 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

Today we feature good news and bad news. The bad news is stocks are being hammered today.
Real estate investing in redding ca
So what’s the good news? Redding area real estate prices are a bargain. Rates are lower than they have been in years. And there exists a way for you to use a Self-Directed IRA to invest your retirement savings into a hard asset, real estate. We may not be at the market bottom, whatever that means, but foreclosure home prices are surely lower than replacement costs. Move your money out of the stockmarket casino, and into something that lasts.

We’ve helped others accomplish this. Read here about one local investor who used FDotD FTW!
See the before and after images!

Better to buy a house or rent?

This post was published 7 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

Don’t just take our word for it. Try this fun online calculator put up by the New York Times. The average sale price of the 410 homes that have sold in Redding since the beginning of the year is $193,863. That gets you an average 1731 sqft home for about $108 per sqft, all averages this year. Here’s the results of the calculator using that average, and some typical financing options.
Buy a home in redding caSo after 4 years, it’s better to own. Click on the image to go to the live online calculator and try some different scenarios.¬†Thanks NYT.

5 or 6 years ago, there was no way it made sense to buy. Now, that’s not true. If you plan on staying, and especially if you make the right choices for location and improvements, it really makes sense to buy.

Investment returns depend heavily on timing

This post was published 8 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

We caution most folks that homes should be looked upon as residences, not investments. Still, investors do buy real estate. And if you choose not to be a real estate investor, and instead take the widely repeated advice to buy and hold equities, you may be subject to a lot more volatility than the “common wisdom” advice implies.

We love the interactive charts of the New York Times. Nobody does them better. this one shows you just how variable your investment returns are over a 20 year time frame. The chart is a bit hard to understand at first, but once you get it, the results are fascinating. What you get depends on when you start, and when you end. Sounds logical enough, but seeing it illustrated so plainly is enlightening. Extrapolating, this insight applies to real estate investments as well. Click on the image to view. Thanks NYT.