Mitigate Financial Risk When Purchasing an Income Property
Discover the advantages of an income-producing investment and different ways to maximize its potential.
Millennials are often lauded for their entrepreneurial spirit, yet the majority of today’s successful startups are actually formed by middle-aged Generation Xers and Baby Boomers. While younger generations may have been raised with the go-getter, make-your-own-way mentality that defines entrepreneurship, they also lack two important factors to success: experience and accumulated wealth.
Wise consumers know it’s always best to shop around before buying. Impulsive purchases often lead to regret, while considered decisions lead to high-quality results. The same holds true for investment properties. It’s tempting to jump on an attractive opportunity, rushing to partner with a lender so you don’t miss out. But any good investor will tell you there’s so much more to a deal than what you see on the surface.
Building wealth for retirement is on most everyone’s to-do list. But why rely solely on an IRA to stockpile those dollars when there are better options? Taking out a non recourse IRA or Solo 401k loan to purchase investment real estate can benefit investors in many ways, not least of which is to stretch existing retirement dollars.
Financial advisors have a duty to steer clients away from less-than-ideal properties and toward options that are bankable. Remember: Lenders want to see investments apt to produce positive cash flow, and they’ll pass on loans if they notice red flags.
The process begins with key actions focused on ferreting out unacceptable real estate properties.
Read the full article here How to Help Clients Spot Warning Signs of Real Estate Investments.
Let’s talk banking horror stories. I’ve heard more than a few from friends who’ve been ignored, manipulated, or flat-out lied to by their financial advisors regarding non recourse loans. The root of these toxic relationships is when banks care more about the products they’re pushing than the human beings who walk through their doors.
First Western Federal Savings Bank sponsored the Retirement Industry Trust Association (RITA) Conference recently held on October 27-28, 2016 in Las Vegas, Nevada. The Retirement Industry Trust Association (RITA) is the formal association of regulated Banks and Trust Companies in the U.S. that offer self-directed IRAs to clients who want to hold alternative assets, such as real estate inside of their IRAs. RITA is essentially the voice of those trust companies in the U.S. and provides a forum for companies to interact and exchange ideas, encourage “best practices” within the industry, and to project and protect their legislative interests to Congress, the IRS, and the Department of Labor, who regulates self-directed IRAs.