Dissecting Private Money

One of the most important tasks of a real estate investor is to “build bridges” to other people. Believe it or not, befriending other people, even your fellow investors, can be a big help to your career and to your business. It allows you to find and sell properties quickly. In addition, it enables you to find funding for your investments, especially if you don’t have enough cash in your pockets.

If you want to become a successful investor, some of the people that you should build bridges to are lenders of private money. As we all know, one of the basic requirements of investing in real estate is having access to a considerable amount of quick cash and private money lenders are known for providing quick financing.

Unlike traditional lenders such as banks, credit unions, and mortgage companies, private money lenders are more amicable and easier to deal with. They are more accessible and most of them won’t ask questions about your credit rating. So even if you have a poor credit score, you can still borrow funds from these financiers.

The reason why lenders of private money are unfazed by a borrower’s poor credit rating is that they don’t care about the latter’s credit record as private money lending is primarily a type of asset-based financing. A private lender usually verifies the eligibility of a loan application by assessing the after repair value, or ARV, of a property for which the loan is being made. If he feels that the borrower can make big profits from the collateralized property, then he is likely to approve the loan application.

An advantage of borrowing private money instead of traditional banks loans is that a real estate investor doesn’t have to deal with a processing team or panel when filing a loan application. In addition, he doesn’t have to submit reams of paperwork and other credentials. What he needs to do, however, is to find good deals to convince the private money lender that financing the project will also bring the latter great profits.

To find private money lenders, you should ask around to determine who might be willing to provide funding for you investment projects. You can also ask referrals from accountants since most of them do paperwork for those who have access to a huge amount of ready money.

Meanwhile, if you want to learn how you can take advantage of private money when investing in real estate, visit www.REIWired.com, your prime source of quality real estate education on the Internet.

Why Use Private Money For Your Real Estate Investing Projects

If you are planning to make a living through real estate investing, one of the skills you should develop is the ability to get quick cash for your business. As we all know, having continuous cash flow is important for a real estate investor because it allows you to act quickly and outsmart the competition when it comes to obtaining profitable properties. In addition, you can easily complete a project without having the need to rush to banks and other lenders in case a financial problem comes up.

There are many ways to obtain funding for a real estate project. You can go to banks and other lending institutions and qualify for a loan. However, to get the financing you need from these lenders, you will need a good credit rating, as well as proof of income and assets.

If you don’t have any of those, don’t worry because there is a great alternative to traditional mortgages. Private money is a type financing that is mostly suited for financing real estate projects. It offers flexibility that you won’t get from conventional loans.

Because they are offered by private individuals rather than institutionalized lenders, private money loans can be asset-based. This is a perfect set-up for real estate investors because their loan applications can be approved or rejected depending on the value of the real estate investments for which the loan is being made. So if you want to obtain the services of private money lenders, all you have to do is to find a property that is capable of attracting a good deal.

So what makes private money loans ideal for funding real estate investing projects?

So if you want to ensure the success of your real estate investing projects, make sure that you obtain private money whenever you’re in need of cash.  Meanwhile if you want to know learn more about private money lending, visit www.REIWired.com

How to: Leave your job/ retire? what are your 401k options

A “Rollover IRA” is the name given to an IRA that holds money from a retirement account like 401ks or a 403b. Money from an employer’s plan can be rolled over into a Traditional IRA. In certain situations a Traditional IRA may later be converted into a Roth IRA. IRS Compliant IRA Rollover You have a few options with your 401k plan from a former employer. In almost all cases, a transfer to an IRA Rollover account is the best option for wise investors. For long term retirement security it is imperative to have a sound savings plan such as an IRA and control and flexibility are key to ensuring financial success. Included in your choices are these options: * You can transfer the money into a Traditional IRA or IRA Rollover account – these accounts offer the same tax deferred status as 401k plans but offer you more flexibility and control of your investment options. If the you opt for a Traditional IRA, you can also continue to contribute up to the annual limit. * You could leave the money where it is – one drawback of this method as that you must rely on your former employer for account management * You can pay a penalty, take the money out, and spend it. This option is strongly advised against as you would be subject to both the 10% IRS withdrawal penalty (up to age 59 1/2) and the withdrawal would be taxed as ordinary income www.mutualfundcenter.com http www.atlanticfinancial.com www.atlanticfinancial.com www.atlanticfinancial.com

If I want to Start Lending my Own Money, and do it legally in WI. What do I need to do?

I have a retirement stash that I would like to make some money from. I would like to loan out that money at like a small percentage, say 1-2%. If I wanted to make that a business, or make it legal, do I need a bankers lisence in WI? or can I just get a Private Lending license?

What is the best institution to use if you want to create a rollover IRA?

I’m in my 20′s and was working for a company and had a 401k. When I left to become an intern I lost all of my benefits of the 401k. Now I would like to rollover the money I have earned from the 401k into an IRA. Which institution is best?

Can IMF wean Europe off its mess?

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Regulators seize three lenders to credit unions
Federal regulators took over three key lenders to U.S. credit unions Friday after losses on mortgage investments threatened to topple them. The move was a reminder that parts of the financial system are still burdened by the toxic assets two years after the financial crisis peaked. Credit union – United States – Banking Services – Business – Financial services

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Private Money Real Estate Investing – Q&A From Costa Rica with Chris Yates – Week 3 (Part 1)

Chris Yates answers student questions about private money for your real estate deals while traveling through Central America. In this edition, Chris gives you an inside look at the jungle “roads” of Costa Rica, and records this video from one of his favorite places to relax, on the “beach bench”. In Part One: Chris answers a question from Helga in Norway about the title registration process in the US. Tina from Washington asks what short of disclosure forms she needs for raising private money, and where to get them. Mike from Denver wants to know if private lending programs are “registered securities.” In Part Two: Where can you find an “investor qualification form” for free? Also, a student success story about getting your name in the media for free and legally attracting broad attention to your private money business without “advertising”. Submit your questions to Chris at cmyatesnews.com

IRA Rollover Penalties (individual Retirement Account)

If you are careful, you should not incur any IRA rollover penalties. As long as your custodial company has no fees attached to these transactions, the IRS is the only thing that you have to worry about.

In order to avoid dealing with the IRS, choose your new custodian, now, and have a transfer processed. Transfers are not reported to the IRS, because the fund is transferred directly from one institution to another. Rollovers are reported to the IRS, because a check is made payable directly to you.

If your contributions were all pre-tax or used as tax deductions, then you will incur IRA rollover penalties if:

You do not deposit the fund into another IRS approved plan within 60 days.

You do not request and receive an extension to that 60 day time period.

You do not receive the appropriate paperwork from you new custodian.

You do not attach that paperwork to your year-end tax documents.

You will also incur IRA rollover penalties if you take two rollovers within a 12 month period. There are no frequency limitations on the number of times that you can transfer the fund from one institution to another, although your custodians could charge a fee for the transactions.

If any of your contributions were made with after tax money, as they would be with a Roth, then the amount of those contributions is not subject to taxation. Earnings and interest accrued on those contributions ARE subject to being counted as yearly income.

If you want to convert from a traditional to a Roth account and all of your contributions were made with pre-tax dollars, you will be required to pay taxes on the entire value of the fund, at the time of conversion. Only those who make $100,000 per year or less are allowed to convert to a Roth or make contributions to one, but that limitation will be lifted, at least temporarily in 2010.

Now that I’ve explained the possible IRA rollover penalties, let me take just another moment of your time to give you a little investing advice. I have seen lots of would-be retirees lose lots of money over the last year, because their retirement accounts were so closely linked to the stock market.

Stock market ups and downs can seriously damage your account balance. You’ve worked hard for your money. You’ve lived on less every year, so that you could contribute thousands of dollars to a retirement account. Don’t tie your ability to retire to the volatile stock market.

Transfer your fund to a self-directed custodian that allows real estate and other more profitable investments that are safer, more stable.

We are offering a real estate investment that guarantees you will at the very least double your ROI from last year investments in traditional vehicles such as stocks, bonds and mutual funds etc. I quote: If you don’t experience double returns from the community investments we are involved in, we will pay it ourselves. There that is straight from the corporate mouth. As ever please check out this information for yourselves, you will be very glad you did.

Property values may have gone down slightly over the last year, but they did not decline by 20%, which is the average loss that we have seen in the stock market.

That was the average loss. Some people lost a lot more. Stock market losses can far exceed IRA rollover penalties. Consider a better alternative; real estate. If you have a couple of minutes to spare, please feel free to browse through my website.

Why Would You Do an IRA Rollover to a Roth?

When you complete a traditional IRA rollover to a Roth account, there are several things that you should be aware of. The law currently requires that your modified adjusted gross income or “MAGI” be less than $100,000 annually, but that is about to change. Here you can read about the advantages of Roth-IRAs and possible disadvantages, as well. I’ve also included a little bit of investing advice.

Advantages

There are no taxes on qualified distributions. That is the biggest advantage and the reason most often cited for conducting an IRA rollover to a Roth.

Distributions from traditional accounts are taxed as regular income. So, if you are in the same income tax bracket at both the time of contribution and the time of distribution, you are likely to realize a benefit. If you are in a higher tax bracket after retirement, you will definitely realize a benefit.

Other advantages include the following:

Participants are not required to begin taking distributions by age 70 ½, as they are in traditional accounts.

Direct contributions may be withdrawn at any time, once a seasoning period has passed, which is currently five years.

Earnings within the account will never be subject to income taxes, so if you make some good investment choices, that could be a big bonus. While earnings within a traditional account are not typically subject to income taxes or capital gains, they are subject to income taxes at the time of withdrawal.

The full amount of conversions may be withdrawn at any time, without taxes or penalties, once the seasoning period has passed.

A Roth-IRA is more like a traditional savings account, since you have easy access to the funds, but unlike a regular savings account, interest earned is not taxable.

Disadvantages

The biggest disadvantage of an IRA rollover to a Roth is that taxes must be paid on the converted amount, at the time of conversion. Since, you received a tax deduction or made pre-tax contributions to the traditional account, you will be required to pay some taxes at this time. Currently, only retirement investors earning less than $100,000 per year can make a conversion. The limitation will be lifted, at least temporarily, in 2010, unless the law changes. That’s another disadvantage, you never know if the laws will remain the same.

Advantages of Self-Directing

If you are considering an IRA rollover to a Roth, now is the time to think about self-directing. Self-directing offers investors more options and unlimited returns. Only about 5% of all account holders choose to self-direct, because they think it would be more difficult and time consuming. Let me tell you a little bit about another option.

An Option to Learn More About

There is a sector of the real estate market that has been largely ignored due to the over-building of higher priced homes and no new construction of affordable housing. This is an area where converting an IRA rollover to a Roth can benefit you, middle income families and entire communities. You might want to learn more about it. You can learn about a simpler more TURNKEY approach to real estate and IRAs by clicking on the url at the foot of this article, and going to my website. You will find much more information there.

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