Any news report will alert you to the fact the home foreclosures are on the rise. If you have untapped funds just sitting in your Self-Directed IRA LLC account, now is a great time to invest in foreclosures. Following are three reasons why.
3 Reasons to Invest in the Home Foreclosure Market Now
Prices are Low Now: Every real estate investor will tell you that to make money investing in foreclosures, you need to find good deals. What is defined as a “good deal?” A simplistic answer is a good deal is one where you make money. Making money in real estate is all about equity; buying homes that have equity.
As adjustable rate mortgages adjust up, the economy worsens and more people lose jobs, homeowners become more willing to negotiate. This means the elusive good deal is easier to come by.
Banks Don’t Want to Be Landlords: Piggybacking off the aforementioned point, banks don’t want to be landlords or property managers. As the market is flooded with more and more properties, banks are trying to sell them off as fast as they can.
Why don’t banks want to be landlords. Quite frankly, because it costs them in two ways. To explain, when banks take over a property, they in essence become the homeowner. This means they have to cut the grass, make repairs made by vandals, winterize it, etc. They pay companies to do all of this. Secondly, no one is paying the mortgage, so they’re losing that income. Monies sitting in your Self-Directed IRA LLC account could easily be put to work to help you reap the rewards down the line.
Long-Term Gain: Just like in the stock market, investing is a patient person’s game. If you use funds from your Self-Directed IRA LLC account to invest in foreclosures now, when the market is hot again, you’ll be perfectly positioned to reap the gains.