subject: A Wise Way To Invest Your Self Directed Iras [print this page] Retirement is a time in life you should enjoyRetirement is a time in life you should enjoy. To really enjoy your retirement, you need to be financially prepared. Investing your Self Directed IRA is a smart way to start investing now for your future. Although you will not see the money you earn immediately, a huge benefit to this kind of investment is the tax free profit.
In today's economy, picking the right investment is important. Because of the dramatic drop in the housing market, it can have promising returns. Specifically, property tax sales can be a rewarding avenue.
A property tax sale can help you find properties at a very low cost. Because of the low cost you will be able to make a significant profit once the property is sold. With the investment coming from a Self Directed IRA, the money you make will go straight back into it as tax free income.
Properties are sold at tax sales when the tax delinquent owner cannot or will not pay their debt. Their property is taken from them and usually sold at auction. Qualified citizens bid on these properties and the winner becomes the new owner.
The minimum bid starts with the amount owed in taxes. The winner of the bid is basically paying off the debt owed on the property. The price paid for the property depends on how high the bid gets but there are some that go for as low as a few hundred dollars.
There is a lot of preparation work to be done before you attend one of these auctions. It is smart to contact the county with any questions you may have about their property tax sale. Some counties do not hold auctions. Some require an entry fee and some require a refundable deposit. Make sure you know what is required before you participate. It is also important to get the list of properties that will be up for auction so that you can narrow it down to the ones you want the most.
Be aware that without proper research, you may encounter problems with the properties you purchase. You might find people living there that need to be dealt with. There may also be additional liens that will need to be paid off. Most of these issues can be discovered beforehand if you put in the time.
Make sure you keep your cost down when you are bidding. Remember that you want it to be a good investment. By using your Self Directed IRA, your retirement is at stake. Use this money wisely in order to get the best returns.
