Self Directed IRA is legally no different than any other IRA.  The term “self-directed” simply indicated that you, the client choose your IRA’s investments without the aid of a traditional financial planner or specific investment company. Your self directed IRA can purchase raw land, rental properties, commercial property, condos, mobile homes, boat slips, TIC and other foreign property investments and much more.

The IRS has a website http://www.irs.gov/publication 590, pages 40 and 41 discuss what you CAN’T do with an IRA.  The rules of governing what an IRA can invest in are exclusive, not inclusive.

As a real estate professional I am always looking for ways to purchase property for the long term.  The self-directed IRA is a tremendous way of buying property of all types.  Careful planning will often enable an investor to profit from these opportunities with great success.

Here is a list of Counties that accpet the tax value transfers:  Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara and Ventura.

Counties that have rejected Prop 90 in recent years include:  Butte, Calaveras, Contra Costa, El Dorado, Fresno, Inyo, Kern, Lake, Madera, Marin, Mendocino, Merced, Modoc, Mono, Napa, Nevada, Placer, Riverside, Sacramento, San Benito, San Bernadino, San Luis Obispo, Santa Barbara, Santa Cruz, Shasta, Siskiyou, Stanislaus, Solano, Sonoma, Ttinity, Tularea and Yolo.

 What does this mean to consumers?  Rates on consumer debt like car loans and home equity lines will benefit.  Home loans will not feel relief as much because the cut was factored in a few weeks ago.  This cut will hurt return on investments, like CDs.  It also continues to weeken the dollar, making foreign goods more expensive.  Inflation may nudge higher.

Renters buying for the first time.  Condo owners buying their first single family home.  Growing a family or just needing more space and buying a bigger home.  Deciding to buy an investment property.  Finally, making the decision to scale down to a manageable home that requires less time and work.

There is no other investment opportunity that offers the ability to leverage your money into such potential gains.

 What’s a normal real estate market?  It’s understanding how to apply your money and skills through a given period of time. 

Walnut Creek real estate has shown to be one of the most consistent areas in the US while on a larger scale;  Contra Costa real estate is so diverse that the statistics tend to show the market in more of a down turn that many of the individual areas like Walnut Creek .  The 680 corridor has a very strong employment base that fuels housing.

In today’s age of technology, buyers and sellers have tremendous data at their finger tips.  Combine that with a strong, knowledge real estate agent and you have the equipment you need to buy and sell real estate.

Marion Bennett has some thoughts of her own about the normal real estate market on the coast.

 16 new home listings and 19 sales.  This means more buyers are in the market.  Open houses this weekend were busier than the past several weeks. 

IT’S ALL GOOD!

 Buyers get out there and buy!  In chaos comes opportunity.  Take advantage of extraordinary interest rates, listings that have been on the market for months and let this general feeling of chaos work in your favor.

Besides below asking price offers, how about asking for a rate buy down on your mortgage or seller to pay closing costs.  Want to buy a Townhome or condo.  Ask for 2 years HOA dues to be paid by the seller at close of escrow.  Ask for for everthing you want and let the seller think about it.  If their serious about selling their proerty they will grap you by the ankle and make the deal work.

It’s a great time to buy a home!

 I have a client that wants to wait to buy a home in the Pleasant Hill, Martinez area because they feel that homes will become even more affordable next year. 

They may be right.  I don’t see the real estate market in Contra Costa County improving any time this year.  Finding the bottom of any market; be it real estate, mortgage or stock market is a skill set that is beyond 99.9% of the population.  It’s more luck than skill.

If you plan on staying in your home for more than 5 years, don’t wait.  Start looking now.  We know that interest rates are very good.  We know that sellers are motivated. Keep an objective view to the market.  Submit offers to seller’s that solve your wants and needs.

Prices of Walnut Creek real estate are incredibly affordable given the 20% appreciation that occurred during the past five years.  The real estate market in Contra Costa County is a true Buyer’s market.

It would be a shame to wait and have this market pass you by.  If Walnut Creek homes are still out of your range, Pleasant Hill and Concord real estate is more affordable and there are plenty of deals out there.

 

We had a hiccough in the San Francisco Bay Area real estate the early 1990’s, but that was nothing compared to the lack of bank liquidity that’s happen in the past few months.  So, what does it mean to you, the guy that has a 6% fixed rate mortgage? It will mean we probably won’t have to wait for a table in restaurants like Piatti’s in Danville or Monticatini’s in Walnut Creek.  Nordstrom’s won’t be out of size 11 Feragamo shoes.  Real estate or mortgage people are spenders. Walnut Creek Mercedes may come off the sticker price.  Consumer spending in Contra Costa County will be affected.   Lack of liquidity and diminished consumer spending can slow down a local economy.  We have enjoyed tremendous growth locally.  In the long run, those of us who live on the 680 corridor will be fine.  We have good schools.  Our businesses are very diverse; finance, real estate, technology, awesome retail and many other sectors. Walnut Creek is headquarters for many international corporations. BART has proven to draw business and homeowners to our Counties. How long will it be this way?  I don’t know, but there is no quick fix.  “Keep your Powder Dry.”