Retirement can sneak up on you faster than you think. It’s important to prepare ahead of time so you can be ready when the time comes. Investing is a great way to do this. Using a Self Directed IRA to invest can be very smart as you can avoid paying taxes on your income.
With this money there are many ways you can invest. One very popular route to take is the housing market. With the economy in the shape it is, the housing market can be a promising venture. While there are many avenues within the housing market, property tax sales are a great place if you’re looking for a large return.
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.
A property becomes a tax sale when the original owner is delinquent on their property tax. If they do not pay off this debt, their property can be taken from them. In most parts of the country the tax delinquent properties are sold at auction to qualified citizens.
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.
You might stumble upon some unexpected problems with these properties. You will want to do as much research on them as possible. You may even want to visit them so you know exactly what you will be purchasing. Be prepared for other financial issues that you will be responsible for.
Remember the key is to invest, so you want your cost to be as low as possible. If you’re using money from your Self Directed IRA, your retirement is at stake. Use it wisely so you can have the greatest return possible.
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Coktostin, John "Investing In Your Future With Self Directed IRAs." Investing In Your Future With Self Directed IRAs. 22 Jun. 2010. uberarticles.com. 4 Aug 2014 <http://uberarticles.com/finance/investing/investing-in-your-future-with-self-directed-iras/>.
APA Style Citation:
Coktostin, J (2010, June 22). Investing In Your Future With Self Directed IRAs. Retrieved August 4, 2014, from http://uberarticles.com/finance/investing/investing-in-your-future-with-self-directed-iras/
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Coktostin, John "Investing In Your Future With Self Directed IRAs" uberarticles.com. http://uberarticles.com/finance/investing/investing-in-your-future-with-self-directed-iras/
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