Where to invest your hard-earned dollars is serious business. Before making any decisions about where to put your money, you should analyze the different investment vehicles available to you and determine where you are the most comfortable. For most people, the comfort comes from having your eggs in several different baskets . . . investing in the various markets and real estate.
Planning to purchase your first investment property? Caution and patience can keep you from making big mistakes. Listen to the advice of your agent and consider all the possible factors that go into making a good investment decision to prevent you from experiencing the many potential pitfalls that can turn your investment into more of a money pit.
Here is some advice to help you avoid some of the most common mistakes that first-time real estate investors make.
Except for some special circumstances in certain locations, real estate historically has gone up in value over time. Sometimes very quickly, sometimes slow but steady, and at times like a roller-coaster ride. A look at the past 100 years shows that if you held onto real estate for at least 10 years, you probably made a good investment that yielded you a reasonable return. That's certainly not the whole picture, and there are many factors that impact your return on investment, making investment decisions difficult at best.
Yes you can. It's important to note that there are strict rules and processes that must be followed to do it right.
There are several different ways your Self-Directed IRA can own the property . . . it can pay cash and hold the title, it can partner with other IRA funds or personal funds, it can hold interest in an LLC or land trust and hold the title in the name of the LLC, among other ways. Your IRA can hold various investment property types including commercial buildings, vacant land, condos, mobile homes, apartment buildings, residential real estate, and more.