In the past Real Estate agents would inform the sellers of the cost that could potentially cost them by the tough appraisal format? The appraisers would enter a property with the mindset that they, had to be a Home Inspector and find deficiencies in the home. Some of the problems that the appraisers would call out in their inspections would cause the deals to just fall apart.
The problem was really agents just did not want to go through all of the hoops, when they could just conventional.
The other issue that was brought light in the years, from the late 90’s to 2005 was the sub-prime market had placed a major hit on the FHA loans the market shares went from around 48% of the lower market to just 32% in and around 2004. Since the FHA seen this fall taking place the appraisals inspections let up and were no longer calling things such as painting a railing.
Some f the other issues were that the MIP had been reduced. These issues and that FHA was really not credit score driven, made it easier for people to receive a mortgage. Not to mention; the money that the buyer could use could be 100% gifted by a relative.
This made the FHA more attractive to many buyers who never thought they could even purchase a home! Now that things are starting to change around and the market is showing signs of recovering in the real estate market, the experts in Washington are at it again. They want to change what is working and try to break it again, so they can drive the market in reverse.
This brings up another point; the Reverse Mortgage also has MIP “mortgage protection insurance, which at this time has a surplus in the fund and they also want to raise this one at the same time. If all programs are working to help stimulate the market why not just sit back and seen where it goes!
The biggest problem; is that the people in Washington who are making these changing are the same people that got us here in the first place. Now I can see maybe raising the down payment to maybe 5% of the purchase price, but to limit the seller contribution this is something that has helped more people own a home than any single issue in real estate. The closing cost and using some of the money maybe to buy down the rate can make the difference in a home selling for more money or even selling at all in and all ready struggling market.
In professional opinion as an Exclusive Buyers Broker for over 15 years, this has been the difference in a sale in many cases. The buyer may have the money for the down payment but fall short when it comes to the closing cost. In some areas of the country like in Florida where the buyer and seller have to pay a mortgage tax and the intangible tax these can significant additional fees to the buyer.
If you want to get the markets flowing again then we need to come up with creative ways to make the sale, and providing these additional items does make the difference. This few but significant changes in the FHA/HUD will have a dramatic impact on real estate markets around the country and send the real estate markets back into a tail spin.
You would think since the FHA has seen a dramatic increase in the market shares that they had lost over the years with stupid issues just to close that they could come up with a thought process that would keep the continuing up swing working.
Sunday, January 31, 2010
How You Can Turn Your Retirement Portfolio Into the Positive Even With Losses From the Bad Economy
How You Can Turn Your Retirement Portfolio Into the Positive Even With Losses From the Bad Economy
By [http://ezinearticles.com/?expert=Tim_G_Robbins]Tim G Robbins
Most people who have or had a 401k or Ira had some doing the investing for them, the company or person who is suppose to be and expert made bad choices or the selection just plain crashed on the market. Many of the 401k's where invested even in the company that they worked for at the time and the company lost their shirts and shoes. In many cases people had placed the IRA's with high risks or low return investments and did not see any growth.
The one thing that most people do not even know about and the investment gurus who make a fortune watching over your fortune good or bad, are that you can control what your money goes. There are options that they are not going to tell you about because they will not make commissions on your portfolio and that makes them keep it a secret. Many investors listen to their financial advisors who have taken hits on their own investment because they made bad choice for themselves, so how can they tell you what to do if they can't do it for their own investments.
These gurus will tell you that they have what you have for your investments; the real part is they make income even when you lose money they get paid on the up and the down. The only one that gets hurt is you and if you have short time until you need it you are in the hole. Right now you do not have much time to get back what you have lost by having someone else watch your investments you have to take control of them yourself. Well I am sure now you are saying to yourself I can't do this I am not and expert and they know more than me so they must be right. Wrong you do not have to be an expert to make big increases in your portfolio without having the so call expert doing the work for you.
So what is this way you can make your money work harder and smarter for you with all of the turmoil and loses that have happen in the market today. I know you see the stock market going up and then dropping over night. There is a way to actually make secure returns on your investments and be guaranteed anywhere from 12% to 15% secured. Ok now you're saying to yourself here we going with a Bernie scheme where everyone who got in got destroyed and lost everything. No this does have anything to do with any schemes of any kind; it has to do with capitalizing on losses' that are happening all around the country today.
What most people do not know that there was more money made by a few during the great depression then anytime in history and you can do it too. There is a part of the IRS tax code that lets you take control of your portfolio and make sound investments in real estate. As you are aware there are many pieces of real estate that are being offered and prices that are at a 10 year low or better.
I know right about now you are saying why I would want to invest in real estate when values are at the lowest they have been in years. Well it really very clear if you want to make money buy when everyone else is selling and sell when everyone else is buying.
So what is this opportunity that can make you wealthy in such troubling times!
Well if you have a 401k or a traditional IRA you a going to keep losing and you will never really get back what you lost over the last few years, unless you make a change in how you invest. The program that is available is called the self directed IRA! Yes by taking your 401k or current IRA and rolling over into a self directed IRA, you can purchase distress real estate and make big profits. But this is just the beginning!
With a self directed IRA you are going to be able to invest in real estate and buy homes or even commercial properties at 20% to 30% of the value and in some cases even less. The best part of using a self directed IRA is you are using tax deductable dollars to purchase and the growth is tax deferred. Unlike traditional real estate investing; when you invest and you sell you have to pay capital gains on the growth, or the difference between what you invested and what you sold for this is the gain.
In a self directed IRA you are using the funds that you deposited in the account that were tax deductable to purchase real estate and when you sell it all of the growth goes back into your account and no tax is paid on it. The best part of this is you can go and do this over and over again and keep deferring the tax on the growth until later in life. There is one little caveat; that you need to know and it's really not a big deal, you can't own the real estate in your own name it must be held in trust in your name. You still own it but the trust has to control the property. This means you purchase the real estate and the trust pays all the bills and when the property sells the trust takes care of everything for you. But the best part is you are in complete control by deciding what, where and how you are going to purchase and when you will sell.
So what can you do and what can you not do with a self direct IRA
First there are a few things you cannot do when using this investment option!
You cannot use your IRA to purchase
• Collectibles (purchasing art, antiques, rugs, coins, stamps, wine, cars, etc.)
•Life Insurance Benefits (purchasing life insurance benefits from a policy holder)
Now here is what you can do with your IRA to make big profits! Other than the exception listed above that's it.
Now if you purchase real estate which I recommend single family homes or income producing properties such as multi-units apartments or commercial income properties or real estate notes. Here is the rules when you purchase real estate for your IRA!
1. The IRA owner; his or her ancestor; his or her lineal descendents (i.e., parents, grandparents, children or grandchildren)
2. The spouse of the IRA owner
3. Financial advisors and other fiduciaries
4. Any entity owned 50% or more by a disqualified party (such as a business half-owned or more by the IRA holder's daughter)
Some examples of prohibited transactions include:
1. Renting IRA-owned property to lineal family members or a spouse
2. Lending IRA cash at a below-market rate to a friend
3. Paying yourself from income derived from an IRA investment
4. Personally guaranteeing a loan to an IRA asset
So now that you know all that you need to know about what you can and cannot do with your IRA go out and start making back the loses that took away your retirement. Go buy rel=nofollow [http://njbuyersonestop.com]distressed properties or great income producing real estate!
Tim Robbins a Long time professional Real Estate and Mortgage financing specialist in New Jersey. I have spent the better part of 20 years helping people make great choices in their real estate purchases. Along with working with my clients to help them understand the opportunities that are available in today's markets I have also taught many people over the years with education on how to make sure you make the right decisions and how to invest. To find out more on how you can have a profession broker who will only work for you in New Jersey go to http://NJbuyersonestop.com or call 800-610-3599 I am here to help. Also do business with me and I will give a year of access to a professional attorney and protect your identity for thieves who want to take it away from you. I will also make sure you make the correct purchase and the best deal possible.
Article Source: [http://EzineArticles.com/?How-You-Can-Turn-Your-Retirement-Portfolio-Into-the-Positive-Even-With-Losses-From-the-Bad-Economy&id=3650424] How You Can Turn Your Retirement Portfolio Into the Positive Even With Losses From the Bad Economy
By [http://ezinearticles.com/?expert=Tim_G_Robbins]Tim G Robbins
Most people who have or had a 401k or Ira had some doing the investing for them, the company or person who is suppose to be and expert made bad choices or the selection just plain crashed on the market. Many of the 401k's where invested even in the company that they worked for at the time and the company lost their shirts and shoes. In many cases people had placed the IRA's with high risks or low return investments and did not see any growth.
The one thing that most people do not even know about and the investment gurus who make a fortune watching over your fortune good or bad, are that you can control what your money goes. There are options that they are not going to tell you about because they will not make commissions on your portfolio and that makes them keep it a secret. Many investors listen to their financial advisors who have taken hits on their own investment because they made bad choice for themselves, so how can they tell you what to do if they can't do it for their own investments.
These gurus will tell you that they have what you have for your investments; the real part is they make income even when you lose money they get paid on the up and the down. The only one that gets hurt is you and if you have short time until you need it you are in the hole. Right now you do not have much time to get back what you have lost by having someone else watch your investments you have to take control of them yourself. Well I am sure now you are saying to yourself I can't do this I am not and expert and they know more than me so they must be right. Wrong you do not have to be an expert to make big increases in your portfolio without having the so call expert doing the work for you.
So what is this way you can make your money work harder and smarter for you with all of the turmoil and loses that have happen in the market today. I know you see the stock market going up and then dropping over night. There is a way to actually make secure returns on your investments and be guaranteed anywhere from 12% to 15% secured. Ok now you're saying to yourself here we going with a Bernie scheme where everyone who got in got destroyed and lost everything. No this does have anything to do with any schemes of any kind; it has to do with capitalizing on losses' that are happening all around the country today.
What most people do not know that there was more money made by a few during the great depression then anytime in history and you can do it too. There is a part of the IRS tax code that lets you take control of your portfolio and make sound investments in real estate. As you are aware there are many pieces of real estate that are being offered and prices that are at a 10 year low or better.
I know right about now you are saying why I would want to invest in real estate when values are at the lowest they have been in years. Well it really very clear if you want to make money buy when everyone else is selling and sell when everyone else is buying.
So what is this opportunity that can make you wealthy in such troubling times!
Well if you have a 401k or a traditional IRA you a going to keep losing and you will never really get back what you lost over the last few years, unless you make a change in how you invest. The program that is available is called the self directed IRA! Yes by taking your 401k or current IRA and rolling over into a self directed IRA, you can purchase distress real estate and make big profits. But this is just the beginning!
With a self directed IRA you are going to be able to invest in real estate and buy homes or even commercial properties at 20% to 30% of the value and in some cases even less. The best part of using a self directed IRA is you are using tax deductable dollars to purchase and the growth is tax deferred. Unlike traditional real estate investing; when you invest and you sell you have to pay capital gains on the growth, or the difference between what you invested and what you sold for this is the gain.
In a self directed IRA you are using the funds that you deposited in the account that were tax deductable to purchase real estate and when you sell it all of the growth goes back into your account and no tax is paid on it. The best part of this is you can go and do this over and over again and keep deferring the tax on the growth until later in life. There is one little caveat; that you need to know and it's really not a big deal, you can't own the real estate in your own name it must be held in trust in your name. You still own it but the trust has to control the property. This means you purchase the real estate and the trust pays all the bills and when the property sells the trust takes care of everything for you. But the best part is you are in complete control by deciding what, where and how you are going to purchase and when you will sell.
So what can you do and what can you not do with a self direct IRA
First there are a few things you cannot do when using this investment option!
You cannot use your IRA to purchase
• Collectibles (purchasing art, antiques, rugs, coins, stamps, wine, cars, etc.)
•Life Insurance Benefits (purchasing life insurance benefits from a policy holder)
Now here is what you can do with your IRA to make big profits! Other than the exception listed above that's it.
Now if you purchase real estate which I recommend single family homes or income producing properties such as multi-units apartments or commercial income properties or real estate notes. Here is the rules when you purchase real estate for your IRA!
1. The IRA owner; his or her ancestor; his or her lineal descendents (i.e., parents, grandparents, children or grandchildren)
2. The spouse of the IRA owner
3. Financial advisors and other fiduciaries
4. Any entity owned 50% or more by a disqualified party (such as a business half-owned or more by the IRA holder's daughter)
Some examples of prohibited transactions include:
1. Renting IRA-owned property to lineal family members or a spouse
2. Lending IRA cash at a below-market rate to a friend
3. Paying yourself from income derived from an IRA investment
4. Personally guaranteeing a loan to an IRA asset
So now that you know all that you need to know about what you can and cannot do with your IRA go out and start making back the loses that took away your retirement. Go buy rel=nofollow [http://njbuyersonestop.com]distressed properties or great income producing real estate!
Tim Robbins a Long time professional Real Estate and Mortgage financing specialist in New Jersey. I have spent the better part of 20 years helping people make great choices in their real estate purchases. Along with working with my clients to help them understand the opportunities that are available in today's markets I have also taught many people over the years with education on how to make sure you make the right decisions and how to invest. To find out more on how you can have a profession broker who will only work for you in New Jersey go to http://NJbuyersonestop.com or call 800-610-3599 I am here to help. Also do business with me and I will give a year of access to a professional attorney and protect your identity for thieves who want to take it away from you. I will also make sure you make the correct purchase and the best deal possible.
Article Source: [http://EzineArticles.com/?How-You-Can-Turn-Your-Retirement-Portfolio-Into-the-Positive-Even-With-Losses-From-the-Bad-Economy&id=3650424] How You Can Turn Your Retirement Portfolio Into the Positive Even With Losses From the Bad Economy
Subscribe to:
Posts (Atom)
About Tim
- Mobile Specialist
- Hello I am a 59 year old marketing professional who holds a degree in real estate and marketing. At this stage of my life I use all of my past talents to background to help people grow and realize their potential in business.
Subscribe To
Posts
All Comments
ArticlesBase.com - Free Articles Directory
