Should you pay off your mortgage first or save for retirement at the same time? It can be a good idea to do both at the same time as its too hard to save saving later - but you should understand the implications of paying off your mortgage before you make the decision. Lisa Dudson explains.
Should you pay off your mortgage first?
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Self-Directed IRA | Real Estate IRA | Guidant Financial Group
Tuesday, June 30th, 2009Self Directed IRA Custodian :: Real Estate IRA :: Rollover 401k
Tuesday, May 12th, 2009www.SunwestTrust.com, 800-642-7167, Self Directed IRA Custodian, Self Directed Real Estate IRA allows you truly diversify your retirement account into more than just the traditional Wall Street investments or bank CDs. Learn more and contact Sunwest Trust, Inc. to set up an account today. We look forward to hearing from you.
Reverse Mortgage Information on Public Television, part 1
Sunday, April 26th, 2009Three Steps to Selling anything
Sunday, March 22nd, 2009Getting to know your buyer
A real estate transaction is like any other transaction. The buyer wants to buy something you have at a price suitable to him/her, while you want to sell that same thing for terms fancied by you. Over the next three articles, I will be taking you through the processes required to come out on top when selling a property. This first article will provide you with a basic understanding of the selling process while the following two articles will take you through the more in-depth practices you need to carry out.
So what is the first thing you need to know when you want to sell real estate? The answer is simple; you need to know who your buyer is and what he or she wants. To identify the characteristics of your average potential buyer, you need to look at the property you’re selling. For instance, if you are selling a large residential property, your prospective buyers will most probably be families, while if you are looking to sell an apartment building, your buyer-type could vary considerably. Hence, accurately creating buyer-profiles will allow you to strength your position in the selling process.
Once you have the profile ready, you need to apply the principal of motivation. Although you might feel that motivation is a topic more suited to a field like human resource, you will be surprised to learn that understanding motivators and their effects is key to real estate success. I am sure all you must be familiar with Abraham Maslow’s theory of motivation. If you aren’t, here’s what Maslow had to say. According to him, people have varying level of needs, starting with the basic physiological needs such as food and water, to high level needs such as the desire for love and self-actualization.
Now you might be wondering how hunger or the desire for love might play into your real estate career. Allow me enlighten you; you as the seller need to attract prospective clients and then hold their interests. While effective marketing (discussed in STEP THREE) may allow you to attract clients, you will need to ascertain every client’s motivators for purchasing before you can effectively grab their interest.
Next, you will need to convince them why they should buy your property instead of the others available in the market. Again, the motivators will play a key role as they will allow you to sense the buyer’s reasons for purchasing. You will then be able to outline the benefits offered by your property in relation to the buyer’s needs.
Your ultimate aim is to stimulate the buyer’s interest to the point where he/she actively chases after your property. If you are offering a high-quality property, you will definitely find yourself dealing with numerous interested buyers. Remember to consult your lawyer, or your real estate agent if you have one, at all times as this will allow you to benefit from an outsider’s perspective. This way, you might even realize that you have overlooked certain factors which are important. So always welcome second-opinions.
Once you know your buyer and his interests accurately, you will be able to follow through more effectively with your marketing.
About the Author:
http://usaloan-modification-Colorado.com
Investment For The Future - What Are Your Options
Saturday, March 21st, 2009A person’s financial future is not a certain thing but anyone who believes that either their retirement funds or the benefits available from social security will be enough to provide for them is in for a shock. Long term investment is the answer as no-one can be sure when they will no longer be able to work and will need to retire.
You may be fortunate enough to have some money in short term, low interest savings but this will not be enough on its own so this money should be invested more wisely. It is often the case that people invest their money for things other than retirement like their children or for a new home and it is the type of things that you require that will determine in what areas you speculate.
If need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time. This is not the type of investment area that you would want to risk your retirement on though so a safer, longer term approach is required.
There is nothing wrong with trying to create a secure future as none of us really wants to work until we die. You also cannot depend on the Social Security system to do what you expect it to do and as we have seen with Enron, you cannot necessarily depend on your company’s retirement plan either so investing is the key to insuring your own financial future, but you must make smart investments!
That is not to say that investment is without risk either and is considered to be a game by man, one you will not know whether you have won or not until the very end. Like any game, it is how you play that can make the difference between winning and losing and investment requires a game plan. The way this strategy works is by carefully planning where you intend to invest your money and for how long so that your retirement needs will be met.
Fortunately each fund can be tailored to each individual, which allows for a great deal of flexibility. The most famous of these areas is the stock market with literally hundreds of thousands of companies available to speculate savings in. Wise people know that this is a complex game where the rules need to be learned before play commences so a great deal of study is required but that will make the difference of losing terribly or winning dramatically. The financial strategies you employ could mean that your future will be secure but make sure that your present financial needs are healthy before you start.
About the Author:
Have you ever considered to start a retirement savings plan. At mywayira.com you can have a personal consultation with self directed ira llc specialists and discuss about self directed 401k
The Advantages of TICs over LLCs
Saturday, March 14th, 2009“Aren’t TICs the same as LLCs”? “Don’t they both offer the same benefits”? “Why should one choose a TIC over an LLC arrangement”? If you are reading this article, I am sure you must have asked yourself these questions time and again. Well, I’m here to help. Allow me to answer all your questions and show you why TICs are a much better option than the traditional LLCs.
Before we go forward, it is prudent to first differentiate the two terms we shall be dealing with, i.e. get a clear understanding of what a TIC is and what a LLC is. A TIC, or a Tenancy in Common, is an arrangement which allows an investor to purchase a property which has multiple owners while simultaneously maintaining all the rights a sole owner would have. On the other hand, a Limited Liability Company (LLC) or other limited partnerships comprise of one or more general partners who serve the functions of an ordinary partner while one or more special partners are liable to pay for the company’s debt beyond the amount of money they contributed as capital.
There is no denying that the LLCs and other such entities provide a variety of management and liability protection benefits which direct-fractional ownership arrangements such as TICs can’t provide. So why then, should one choose a TIC over an LLC?
You see the way LLCs make life miserable for an investor is when the arrangement is used by co-ownership groups occupying some, if not all, of the co-owned property. In such cases, Limited Liability Companies just don’t cut it because the legal and tax disadvantages created by these entities outweigh the benefits so much that they make the whole venture seem futile.
On the contrary, a TIC arrangement has a lot to offer for investors. For starters, an investor is blessed with a great amount of buying power. Small investors, who might not have been able to even dream about a certain project because the costs were too high, can find themselves easily a part of the project because they are able to pool-in their resources and make large purchases together. Moreover, the fact that TICs are arranged by a team of real estate professionals, known as a ‘Sponsor’, enables the power of professional management of the project for the investors. The advantages of having this Sponsor are multi-fold. Firstly, decision making becomes far more effective than anything possible under an LLC arrangement.
Furthermore, a TIC owner is guaranteed a stable monthly income. Some might argue that this income is the same as the cash flow received under a single-tenant arrangement. However, these people forget that the tenant remains the responsibility of the owner in an LLC arrangement, while in the case of TICs, the Sponsor sets up the arrangement and thus provides highly-reliable tenants. Additionally, as these TIC Sponsors deal with many properties, they are able to command great leverage when dealing with lenders. Hence, the Sponsor might be able to attain very favorable financial arrangements for the TIC and its owners.
Moreover, as TICs have little upfront costs, they allow investors to diversify and reduce their risks by purchasing two or more property types. This is substantially above and beyond anything that LLCs can offer as LLCs and other such entities may require large minimum cash injections which may tie-up too much of an investor’s money, thus leaving him/her at the mercy of just one project.
So all said and done, if you ever have to choose between a TIC and an LLC arrangement, the decision should be simple and straightforward; TICs rule!
About the Author:
http://usaLoan-Modification-colorado.com
The best way to make your money grow.
Sunday, March 8th, 2009The Roth 401k is particularly attractive to higher-earnings individuals, or those that would mostly likely be phased out of IRA contributions. Unlike the $5,000 max in the IRA, an employee could defer the full $15,500 for 2007, or $20,500 if they are over age 50. The Roth 401k works much like the Roth IRA, in that contributions are made with after-tax dollars and withdrawals are tax-free. Unfortunately, not all employers offer this new plan. The roth 401k, quite frankly, is a dream come true in my opinion. Ok so thats a little exaggeration but it truely is the best of both worlds - 401k and Roth IRA.
The Roth 401k accounts are first and foremost a 401k. Most of the same rules apply, including the early withdrawal penalty on all distribution recorded as “income”. The Roth 401K contribution limit will be $15,000 in 2006. Note that the limit applies to the combimed contributions to the regular 401K and the Roth 401K; for example, a person could not contribute $15,000 to a Roth 401K and $15,000 to a regular 401K in the same year. The Roth 401k was adopted by 14% of Vanguard plans, and 5% of participants within these plans elected the option. Early Roth adopters included new plan enrollees, high savers, Web-registered participants, and high-income households.
The roth 401k bonus election with trap worked. The roth 401k bonus election in Chinese were doubtless an advantage is with the remarkably low weight of 500 lbs. The Roth 401k works inverse with the above idea. The money you earn this year is taxed this year. The Roth 401k is not always as good a deal as you’ve stated. For example, my marginal tax rate is 28%.
The Roth 401k plans are relatively new and many people haven’t heard of them yet. Employers are slowly starting to offer them to employees. The Roth 401k was set to expire in 2010 unless congress renewed it. A lot of employers were reluctant to offer the Roth 401k because of its status. The Roth 401k plan is a post tax contribution where qualified distributions are tax free. The Roth does not allow deductible contributions.
The Roth 401k is a combination of the Roth IRA and the traditional 401k. It is a company-sponsored retirement plan, but it invests after-tax dollars to a retirement account. The Roth 401k minimum distribution rules are also similar to 401k withdrawals - meaning you need to start to take distributions when you reach age 70 1/2. The Roth 401K is a great plan too, and ALL employers SHOULD be offering it. Certainly if your employer is not offering this option, petition them to do so.
http://blog.ira-401k-realestate.com
About the Author:
Go Roth, a guide to the Roth IRA eligibility contributions, conversions, distributions, as well as a Free Video and eBook,
Are you ready for your retirement?
Thursday, March 5th, 2009When you think of retiring, you need to consider not just how much is there in your retirement account. Preparing for retirement entails more than just saving money in the bank or financial institution. There is more ways than just putting your funds on a retirement saving account.
One should start preparing for retirement early in life. Starting late on investments could mean that it will take years more to enjoy the fruits of your investment or you would have to shell out more money enjoy the profits sooner.
You may have notice that money goes easily and you wonder where you spent it on. Begin resolve to pay off your debts too. It is a great relief to be debt free by the time you retire. Having to pay your debt out of your retirement income is something that you would want to avoid.
A good retirement plan would involve taking into consideration your medical needs for the remainder of your life. You will have to invest in having good health so that you would need less of money to service for medical expenses. But if you should have medical needs that you foresee, it is better to prepare for the worse.
These funds are just enough to cover the basic things in retirement life. It is in your old age that you want more than ever a better life. If you have sacrificed and work hard and smart, you may secure a life that enjoys higher standards.
In order for you to enjoy better living conditions or at least maintain the sheltered lifestyle you were used to, then you should have prepared a sound retirement plan on your own. Also be disciplined to safeguard your retirement money for use only at retirement.
It is very tempting to get some of it as easy recourse to unexpected financial need. Avoid as much as possible taking out money in your retirement plan. After all, it is the only viable financial source that you will be left comes your old age.
About the Author:
Today more than ever you require retirement planning information that is honest and accurate. No matter how near or far away retirement is you must be planning for it. Early retirement is easy as long as you prepare for it in advance.
How to use “Owner Financing” for Real Estate investing
Thursday, February 26th, 2009Owner financing often produces a winning situation for both the homeowner who is selling the property and for the buyer who is purchasing the property. Owner financing may be defined as the situation when a seller is willing to help finance a real estate transaction by creating a loan for the entire purchase if they own the home outright or by creating a loan for part of the purchase price when there is already an existing loan on the property.
There are numerous benefits when an owner financed transaction is used. For one, the transaction can proceed more quickly and easily than when conventional financing is used because there are fewer steps involved. For another, the seller is more apt to receive a higher sales price, and the seller will receive payments and interest over a long period of time. There are tax savings realized by selling under this installment plan. Additionally, the buyer will realize savings by avoiding loan fees and lender charges, and the negotiated interest rate will generally be lower than the available interest rates from a commercial lender. Also when you factor in that 20% of home buyers cannot qualify for a traditional funding; this type of financing offers home ownership to a group of buyers that may not have the chance otherwise.
There are a few disadvantages to owner financing to consider. For one, if the buyer defaults on the loan the seller will have to initiate foreclosure proceedings. This can be costly, time consuming, and require work that the seller might rather avoid. Of course, after the foreclosure the property can be sold again, an advantage for some owners and a disadvantage for other owners. Additionally, the interest income generated by the loan will be subject to taxes, which could be a disadvantage to a seller who is in a higher tax bracket. Also, the seller does not receive cash for their equity immediately, but rather will receive their equity in installment payments over time.
TIPS: For the seller and the buyer to consider when negotiating an owner financed transaction. The seller should research the buyer’s creditworthiness and ask numerous questions to become confident that the buyer can fulfill their obligation. The buyer should provide a written explanation of any problems that appear on their credit report, as well as give a list or personal references. The buyer should research the local housing market and get a home inspection done to identify any major problems. Also, a proof of payment provision should be included in the sales contract so the seller can verify that the new owner is making all insurance and property tax payments.
An owner financed home sale can be a winning situation for both seller and buyer. It is important, however, that the seller and the buyer do their due diligence in order to reduce possible risks.
About the Author:
Doc Schmyz has worked with investors all over the US. His free website shares Real estate investing information for all over the US. Find Real estate investing information by state