One of my favorite sources of funding to buy houses comes to fruition after educating those with old 401ks. I find that people who have old 401ks do not pay attention to them. Also those with old pension plans and old IRAs fall into that boat as well.
When someone leaves or quits their job or retires from their job, they have this big pile of money in their retirement account. Most just let it stay there dormant earning a pathetic rate of return. After a session or two with me they learn that they can roll over that money to a Self-Directed IRA. That’s an individual retirement account where the holder can fund real estate deals and get their money working for them just as money is supposed to versus…us working for money.
So, we get lots of our funding for our real estate deals from individuals with old 401ks, IRAs and old pensions. After educating them on this strategy, those that see the big picture come on board with us and become our Money Partners and provide acquisiton capital. Basically, they become our bank and we sign a note and a mortgage at closing just like the banks make everyone do when they loan money.
************************* If you are reading my blog for the first time, let me inform you that: I am a guy that buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments…People that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where I get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with me to provide the funding which empowers me to be able to purchase real estate on a continual basis.
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Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).