Are there 401k alternative investments that have the potential to provide greater returns on our investments? Yes, indeed! In fact, there are many 401k alternative investments that could potentially earn you greater than 10x your current returns – especially if your hard earned savings are in stocks, bonds, mutual funds, CDs or your personal savings account with your bank.
Today, investors have access to more information than ever before. Don’t consider yourself an “investor”? Well, if you are providing any type of money or resources with the expectation of financial gain, you are definitely an investor. By definition, an investor is any person who commits capital with the expectation of financial returns. Investors utilize investment in order to grow their money and/or provide an income during retirement. (Source: http://www.investopedia.com/terms/i/investor.asp).
As people search for ways to diversify their retirement portfolio, real estate is often an option that comes up. These individuals work with our team to find a property that their IRA can purchase. Nearly everyone with a retirement account can invest in real estate in one way or another.
Some are just entering the workforce and looking for a way to jump start their retirement savings, others have been contributing to their IRA for years and want to diversify their current holdings. We even see people preparing to one day retire in the home that their IRA owns! The IRS allows an IRA to acquire real estate as an asset without penalty and while keeping the tax benefits associated with that account type. (Source: https://newdirectionira.com/investment-options/real-estate)
In fact, in working with Sky Castle Real Estate, you have the opportunity to invest in real estate without having to do any of the heavy lifting! The process is simple. We find an undervalued property we want to purchase – and once you give us the green light, we borrow the funds from you to purchase and renovate the property. Once the renovations are complete (typically 4 – 6 months depending on the size of the project), we list and resell the property. At closing, you receive your principle plus interest. It’s just that simple!! Our goal is to keep turning that money for you and keep you making substantial profits so you keep coming back to us – building a long-term, mutually beneficial relationship.
Let’s walk through an investment deal scenario to see what the numbers could look like on a typical renovation project with a 6 month hold time with your investments.
Purchase Price of Real Estate: $189,000
Total Repair Cost: $68,000
Total Invested: $257,000
Sales Price of Real Estate: $395,000
Investor Potential Return on Investment = $12,850
Investing with us means you can relax while your money is in a truly safe place, working for you. Typical investments in our retirement accounts are completely unsecured, uninsured and the returns are unknown. There may even be years that you are actually losing money in the market!! When you invest your hard earned money with Sky Castle Real Estate, your investments are secured with legal documentation, your collateral is fully insured and your returns are fixed with our agreed upon terms.
We add layers of protection to our investors to ensure their risks are minimized. Each property we acquire is put through a rigorous evaluation process in order to assess the profitability before the property is ever purchased. Also, for your protection, you are provided these documents to secure your investment capital: promissory note, deed of trust/mortgage, hazard insurance policy, personal guarantee.
Most investors think an IRA can only be used to purchase investments, like stocks and mutual funds. But that’s not true! You can invest with Sky Castle Real Estate using the funds which are already in your IRAs and other retirement plans.
As it pertains to lending for real estate investments, enter the self-directed IRA. The IRS has set forth guidelines on what you can and cannot invest in with your IRA. Many people are surprised at the scope of options available. IRAs are much more powerful than most people ever realized. If you add to that power of a Roth IRA which allows you to enjoy your earnings tax-free or deferred, and you’ve got a fast road to an easy retirement.
If you have any interest in this opportunity, please contact our office by phone at 720.505.2005 or visit us at http://resdira.com/ericandamandadynneson.php. We would love to sit down with you to get a clear definition of what your financial goals are and the amount you are comfortable initially investing. We would also be happy to get you in touch with our partner local custodian who can assist you with getting your funds in place.