Now that lenders have tightened qualification guidelines for investor loans, many potential investors have found it difficult, if not impossible to obtain a loan.  Meanwhile, foreclosed and short sale homes can be bought at huge discounts.  What's an investor to do?

    Many have lost faith in the stock market and are turning to self-directed IRA's and 401(k) plans as a source of working capital.  Real estate is still seen as a solid investment that people can see, feel and use.  There is power in purchasing property with cash and with little carrying costs.  This kind of investment may be less stressful than other forms of investment.  Since profits are held within the retirement vehicle, no taxes or capital gains are due until you begin making withdrawals.

    Several investment trust companies offer these programs; however, very few offer checkbook control of your investment.  There are strict IRS regulations regarding this type of investment, so it is important you get good solid advice and education from a reputable company.  The biggest mistake people make is finding the deal first, and then trying to setup a new account.  These accounts don't require a separate tax return, but do have their own Federal Tax ID number.  It takes approximately 4 weeks to setup the account.

    For more information, call my office or email me for an investment trust company referral that has worked well for us.