Edition: Global Global Select Region
Email: Passwd: or sign up free
One News Page
One News Page > Press Releases > Concerned Stocks Will Take A Cliff Dive? Now's the Time to Diversify and Buy Foreclosures With Your IRA
Open news article

Concerned Stocks Will Take A Cliff Dive? Now's the Time to Diversify and Buy Foreclosures With Your IRA

Monday, 31 December 2012

With all the uncertainty in the stock market, a small but growing number of people have discovered they can use their IRA's to buy real estate -- from single-family homes to apartments to commercial buildings. Kevin Dickenson, a Palm Beach real estate agent explains the process and provides an Excel calculator that makes it simple to compare investment properties.

Palm Beach, Florida (PRWEB) December 31, 2012

According to a recent article published by CNBC entitled “Buy Foreclosures with Your IRA”, many investors are beginning to take advantage of the downturn in the market by investing in foreclosures through their self-directed IRA or 401K. With over $4 trillion dollars locked in retirement plans consisting primarily of stocks and bonds, today’s distressed real estate market provides a rare opportunity to diversify portfolios that are heavily weighted with stocks.

As the legendary investor Louis Glickman once said, “The best investment on earth is earth.”

It’s a painless process to transfer an IRA from the bank or brokerage firm to a self- directed IRA administrator such as NuView IRA. With all of the uncertainty in the stock market, now more than ever is the time to learn how to invest in distressed real estate. Kevin Dickenson, a Palm Beach real estate agent, suggests buying income producing rental properties that return 7% to 10%, or damaged properties to fix and flip.

Self-directed IRAs offer significant tax advantages that have made many millionaire investors. The greatest benefit is that IRA investors pay no capital gains tax when the property is sold by the IRA. In addition, because the profit from the sale is deposited back into the IRA with no tax on gain or growth, the investor enjoys the power of compound interest to invest in the next real estate deal. Although IRS 1031 exchanges can be used to fund partial IRA investments in real estate, self-directed IRAs do not have the same limitations and holding periods, therefore, are much more flexible.


“The first step in purchasing real estate is to retain a trusted Realtor who is knowledgeable on the subject and knows how to analyze investment properties,” said Dickenson. Purchasing real estate with your IRA is remarkably similar to conventional means, but IRS regulations must be observed. As with any investing, it’s always appropriate to obtain expert advice from tax and legal advisors. Beyond that, the best solution to avoid problems with the IRS is to become an educated investor by reading or attending a workshop or seminars on buying real estate in an IRA offered by the self-directed IRA Administrator.

“Newbie real estate investors need to understand cap rates, return on equity, gross rent multipliers, net operating income and all the other variables necessary to analyze real estate”, said Dickenson. “I’ve compared dozens of Palm Beach foreclosures for investors, and it’s not difficult to find rental properties with a 7 to 10% cap rate,” said Dickenson. A real estate investment calculator is the key tool because it distills down all the variables and makes comparing properties a breeze. If you purchase at the right price and in a good location, the property may have significant appreciation when it comes time to sell.

Download Kevin Dickenson’s real estate investment calculator here.

“I recently sold a two bedroom condo in a good location to an investor for $51,000 cash”, said Dickenson. The monthly rent is $800, the annual condo association dues are $2,700 and annual property taxes are $800. At 90% occupancy, the calculator shows a 9.1% cap rate and is higher than a lot of stock portfolio returns. “The future appreciation of the property is the wild card, but South Florida home values experienced a significant increase in 2012, so I think it’s safe to say the bottom is behind us,” said Dickenson.

Please visit http://www.KevinDickenson.com to view a list of Florida bank owned homes and foreclosures. Mr. Dickenson can also be reached by calling (561) 262-8243.

Kevin Dickenson and Prudential Florida Realty are not affiliated or compensated in any way by NuView IRA, Inc. Please perform your own due diligence prior to making any investment decisions.
Share on FacebookShare on Twitter Comment

You Might Like

Other recent news in Press Releases

3M Announces Record First-Quarter Sales of $7.8 Billion; Earnings Increase 11 Percent to $1.79 per ShareU.S. Residential SALES Activity and Median Prices Reverse Downward Trend in March Even as First Quarter Distressed SALES Increase From the Fourth Quarter
CHICAGO Blackhawks, St. Louis Cardinals, Boston Bruins, New England Patriots, Tampa Bay Rays Lead Bloomberg Businessweek’s “Smartest Spenders in Sports” 2014 RankingAkamai Releases Fourth Quarter 2013 ‘STATE of the Internet’ Report
Jingcheng Receives CHINA's First S-76D™ HelicopterClean Energy Opens Latest FLORIDA Compressed Natural Gas Station for Hillsborough Area Regional Transit Authority
Discounted 65-inch Wall-mounted Network ADVERTISING Machines Now Released By China Digital Signage ADVERTISING Player Company Digital-Signage-China.comGlow Digital Media is excited to Announce an Exclusive Strategic Partnership with Blue Ant Media in CANADA
PCS Bail Bonds Reacts to TEXAS Attorney General’s Assertion that Arming School Employees Doesn’t Violate State LawsVoices Against Brain CANCER Declares May 9th As National Gray Day



comments powered by Disqus

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2014 One News Page Ltd. All Rights Reserved.  |  About us  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
One News Page - Top Headlines RSS Feed RSS  |  News for my Website  |  Free news search widget  |  Advertise  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |  One News Page on Facebook LIKE us on Facebook  One News Page on Twitter FOLLOW us on Twitter  One News Page on Google+ FIND us on Google+

Bullet: One News Page official news app for iPhone Bullet: Our news app for iPhone