The current financial crisis is blamed on the sudden drop in the value of real estate. This is bad news for the many people who lost their homes and the financial institutions that backed their mortgages. But, it can be good news for you. Property is selling at one of the lowest rates in recent time. Now is the time to buy real estate especially if you are looking for a good way to invest your retirement funds.Now you might be asking yourself can I really do that. Can you use IRA money to buy real estate? I thought that you had to invest in stocks, bonds, and mutual funds. How do you use IRA money to buy real estate?With a self-directed, or Roth IRA, you have the freedom to choose where your investments go. So the answer to can you use IRA money to buy real estate is yes, as long as you do so within the guidelines. With the help of an investment counselor, this can be the best way to go in these hard financial times.By using IRA money to buy real estate you may realize a higher profit margin on your investment as compared to the average 8% that is common among conventional financial instruments. This means that your future retirement account can grow at a more rapid rate. What may be even more important is that your money is backed with a tangible asset. Unlike stocks, bonds and mutual funds, the rumors on Wall Street that sends the value of these financial instruments on a roller coaster ride; property maintains it value or increases with value over time.If you are wondering can you use IRA money to buy real estate and still see your nest egg build; I am here to tell you that today is the day to make the switch. Think about it for a moment. Prices are low right now, but, the government is doing everything in its power to see that the market is stabilized. Their actions will in turn increase the value of any property that you purchase today. So, tomorrow, when things look better, you can sell the property and return the profits to your IRA account.With the state of the economy such as it is; finding the right place to invest your retirement funds can be difficult. However, now that you have found out the answer to can you use IRA money to buy real estate; those decisions may be easier.
The market is so beneficial for home buyers now everyone wants to learn how to buy real estate with no money down. And with the recent subprime lending scandal that contributed to several large financial institutions facing collapse, and in no small measure to the current financial crisis, you may think that your dream of real estate investing is gone forever.That’s not true though, and there remain several viable options, allowing many first time homeowners to get into their own home, the first step on the real estate investing ladder, and making it possible for investors to access finance for investment properties.Conventional FinanceConventional finance takes into account your credit score, with the minimum threshold being in the region of 527 having been approved, as well as your debt to earnings ratio, and any equity or investments you may have to contribute, even your 401(k).The thing to remember with conventional finance is that the better your credit score, the better the interest rate will be, since the financier will see you as a better risk option. The solution? Clean up your credit score before applying for conventional finance, or, because they don’t have a prepayment penalty, refinance once your credit score has improved.80 / 20 LoansAn 80/20 loan option to finance your real estate investments is actually two mortgages, generally only available to property investors with a credit score of 620 or higher. The good news about this loan is that unlike conventional loans, no Private Mortgage Insurance, or PMI, is added to your monthly installments.Grant ProgramsA little known funding method for real estate investments, there are actually over a thousand grant programs, available to most income groups. Doing a little digging, and finding out if your real estate investment dreams qualify for grant financing can save you a lot of money!Low Money DownAside from these no money down routes to real estate investment, there is low money down options, or 3% down loans, usually available to people with credit scores above 620, although they are available through methods other than conventional loans that make it possible for most people to qualify. If you decide to choose the low money down option, the 3% payment could be a gift, or you could save for the down payment yourself.New DevelopmentsOften, early stage real estate developments will sell lots for a minimal holding deposit. This lot becomes yours, with the balance of the agreed payment becoming due only months, or years, down the line. Property speculators have been known to make a lot of money buying these lots on release, and then selling them, at a tidy profit, before the full payment becomes due. The trick to this kind of real estate investing is to identify developments that will be popular, and where the demand will be high.Real Estate Investing is For EveryoneWhatever your financial position and means, the dream of real estate investing is within reach. Speak to a financial advisor, realtor or mortgage specialist to find out what your best options for realizing your dreams.Remember, the bottom line with real estate investing, whether you chose a no money down option or a low money down option, is that your money is being used to purchase an asset that will continue to gain value for the rest of your life.Property is a perpetually popular investment choice, for ordinary people, as well as investment companies and the very wealthy for a reason – it’s safe, offers a tangible asset that is guaranteed to offer a return on your investment over time.