Tips on Buying Reno Real Estate with your IRA

By Larry Crickon

While most people understand that real estate is an investment, many people are taking advantage of the qualified retirement accounts to purchase real estate as an appreciating or revenue-generating instrument like IRAs.It’s really important to understand the tax implications, legal ramifications, and various other intricacies of purchasing Reno real estate within your IRA.
So, lets dive into some tips on buying Reno NV real estate with your IRA!

Tips on Buying Reno Real Estate With Your IRA

If you don’t have a self-directed type IRA… first off… you’ll need to connect with your trusted financial advisor to find a reputable and low fee self-directed IRA. Or, connect with us and we can direct you to some very good self-directed IRA companies we’ve worked with in the past.

Open a Self-Directed IRA

The first step for purchasing investment properties in Reno within your IRA is to open a “self-directed” IRA. You can do this by visiting a qualified financial advisor or other trusted fiduciary to act as the IRA custodian. A fee-only financial advisor can help you set up this account with minimal hassle, while a commission-based financial advisor may attempt to steer you clear of purchasing tangible assets within your IRA (he or she won’t earn much on the investment).

Types of Properties You Can Buy With Your IRA and Rules

You can own a wide variety of properties within your IRA, including residential, commercial, and industrial structures, as well as unused land. Many savvy investors choose to purchase parking lots, storage unit facilities, and other types of property that require little maintenance, but generate steady income.
Your IRA cannot own any home where you live or vacation. Legally, you aren’t even allowed to spend one night in the property. You cannot avoid this restriction by “renting” the property from your IRA, or renting to your spouse, children, grandchildren, parents, or grandparents, nor can you use an IRA to purchase property from close family. You could, however, rent to property to a sibling, cousin, or friend. A solution that many investors implement is to purchase a home for their IRA, rent it out for income until retirement, then assume residence upon retirement.

How Does Income Work With Real Estate In An IRA?

The income generated in your IRA may not be used for your “personal current benefit.” This means that all income generated by the property must remain within the IRA until you retire. Selling the property will require you to leave all profits within your IRA. Also, property taxes, insurance, improvements, and other costs associated with the property must be paid by the IRA. Failure to comply with these regulations could disqualify your IRA, subjecting you to income taxes on the entire value of the property, plus a 10% early distribution penalty.
It’s important the all distribution rules associated with an IRA (or Roth IRA) including taxation, required minimum distributions, beneficiaries, and other factors do not change when using a self-directed IRA to purchase property. There can be a huge upside to real estate in your IRA, but it’s best to know exactly what’s in store.

Learn About Our Properties In Reno Call Us (775) 721-2274
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What Are The Risks of Note Buying in Reno?

By Larry Crickon

If you’re thinking about buying notes, you probably arrived on this article because you are doing your due diligence and you want to know what are the risks of note buying in Reno to help you determine whether or not to invest in them.
That’s a smart decision to perform due diligence before doing ANY investing, so we’ll answer your question, “What are the risks of note buying in Reno?” here.

Notes May Be Non-Performing… But Is That Such A Bad Thing?

Notes are like mortgages. When you buy cash flowing notes, you’re buying the possibility that the homeowner will continue to pay their “mortgage” payments. While many do (these are called “performing notes”), not all notes are performing. Some start out as performing notes and then become non-performing – that is, the homeowner chooses to no longer pay.
The good news is: there are a few ways you can deal with this risk!

• First, you can work with the owner to get them to pay.
• Or, you can sell the non-performing note to another investor who might be better at dealing with the situation (so at least you get some of your money out of the situation).

And better yet: if it turns out that you’re really good at making non-performing notes into performing notes then you’ll actually have another way of making money: you can become the investor who buys non-performing notes at a discount and turns them into a performing (cash flowing!) notes again.

Other Risks May Include An Out-Of-State Owner, Non-Predictable Notes, Etc.

Notes that are local might be easier to deal with than those that are out-of-state. However, this varies. If you’re just starting out then make sure you buy notes that are only in NV, or even just in Reno (if available).
Or, you might find that the note’s cash flow is just not very predictable. Technically the note is non-performing sometimes and performing at other times. You may simply need to work with the homeowner to help them find a payment method that works for them.

Summary

As with all investments, the risks tend to align with rewards: the riskier an investment is, the greater the reward. So it’s important that you find the balance between the amount of risk you’re willing to take on versus the amount of reward you want to have.
Avoiding risk completely will mean zero return… so you may need to take on some risk to get a return on your investment. Fortunately, with note investing, you can manage your risks and still enjoy a good reward.
No matter what level of risk you’re comfortable with, there’s probably a note for you!
At Oracle Property Solutions, we are note sellers and we would be happy to work with you to show you what notes we have available and help you start investing in notes. Just pick up the phone and call our team at (775) 721-2274 or click here now and fill out the form, and we’ll share our list of available notes with you.

How To Determine Value Of Land In NV – The Art And Science Of Valuation

December 14, 2016

By Larry Crickon

If you own a piece of land and you’re thinking of selling or even just wondering how much it’s worth, then you need to find information about how to determine the value of land in NV. In this blog post, you’ll read our best advice about how to do that…

What You Need To Know First About How To Determine Value Of Land In NV

The very first thing you need to know is: it’s an art and a science. There are many factors that go into the valuation of land and there is never one single number that you can definitively say, “THIS is what my land is worth.” So we’ll give you some of the factors below but be aware that when it comes to how to determine the value of land in NV, you’re really looking at an approximate range.

Market Price Is One Way To Determine Value Of Land In NV

Economists will tell you that the best way to know the value of your land is to sell it. The price that someone is willing to pay is the value of your land. Of course, you might not be ready to sell (perhaps you’re just trying to see how much you can get for it) but certainly the most definitive answer you can get is how much someone is willing to buy your land for. But as you’ll soon see, there are other important factors as well…

Online Prices Shouldn’t Be A Way To Determine Value Of Land In NV

When you’re thinking about valuing your property, one of the first places that many people look is at some websites that claim to give you the value. (Zillow is one such site but there are others.) Use these numbers with caution! They are derived from a number of factors and should only be considered one piece of information in a much larger puzzle. These numbers can be wrong by as much as 50% in some areas.

Agent Market Valuations Are A Simple Way To Determine Value Of Land In NV

Many real estate agents offer free market valuations to homeowners and land owners. So you may consider calling up an agent and asking for a market valuation. The agent will then look at data from similar properties that have sold recently in the area and they’ll use that as a way to help you determine the value of your land. Again, it’s not a perfect number (since factors change) but it’s a good starting point if you are looking to list your property with an agent.

Here’s The Most Important Way How To Determine Value Of Land In NV

The best judge of the value, though, is YOU. Three people looking at the same piece of land will get very different valuations – if one is a farmer wondering how hard it will be to clear the land and grow a crop, and if another is an owner who wants to build a retirement home in the wooded area, and if a third is a property developer looking to divide up the land and develop a subdivision. Each one will value the land according to their needs. So what do YOU see yourself using the land for? (And remember: value is not always a financial number but also includes the time, effort, and potential enjoyment you can get from the land).

If you want to talk about land with us, we’d love to connect with you. Perhaps you have a piece of land to buy or to sell, just click here to enter your info and let us know about the property you want or you own and we’ll get back to you quickly.

4 Top Financing Options for Flipping Houses in Fernley, NV

4 Top Financing Options for Flipping Houses in Fernley, NV

By Larry Crickon

Flipping houses can cost money. Here are 4 top financing options for flipping houses to help you get started. Use one, some, or all of these financing options to acquire all the investment properties you want to flip!

If you’re thinking about investing in real estate, you have several options… you can rent, rent-to-own, wholesale, flip, and many other options as well! If you’re thinking about flipping, you’re probably looking to acquire an investment property and then fix it up to sell at a higher price. If so, here are 4 top financing options for flipping houses…

Flipping Finance Option #1

You can get a traditional bank loan from a mortgage loan lender like a bank or mortgage company. These are usually similar to the traditional mortgage loan that you might get for your residence: you pay a down payment and “use your credit score” to borrow the rest. Unlike your residential mortgage, you would sell the house to a buyer and then pay off the mortgage quickly.

The biggest drawback to this method is that you can usually only get a few mortgages in your name at once before the banks won’t lend you anymore. That will limit how many properties you can flip at once.

Flipping Finance Option #2

Another way to finance your flips is to partner with other investors so that each of you put in a portion of the total cost. For example, you might acquire a $100,000 property by finding 3 other investors and each of you put in $25,000.

Of course you’ll also need to figure out what percentage each person will invest in the renovations, and what percentage each partner earns at the end. In the example above, the simplest option would be for each partner to invest 25% and then get 25% back but some investors might prefer to be just “silent partners” while other investors might want to roll up their sleeves and do the renovation work!

If you’d like to flip some properties and perhaps want to partner with other investors, why not get in touch with us at (775) 721-2274 and we might be able to give you some suggestions or even make some introductions.

Flipping Finance Option #3

In some situations, you may be able to invest in real estate with your IRA or 401(k). This is a very smart strategy (although you should be aware that there are some restrictions and guidelines — so make sure you talk to an expert who can help you).

There are some significant tax advantages to using this financing option, so it’s one that you may want to consider if you have money available in your IRA.

Flipping Finance Option #4

Seller financing is a very powerful way to finance your investments. Using this method, you by pass the bank and the seller actually becomes your bank! Instead of getting a loan from a mortgage company, you simply get the house and pay the seller a regular “mortgage” payment each month until you’ve paid the entire amount off. Some sellers like this because they want to sell fast and like the cash flow.

Summary

If you’re an investor who wants to flip houses, you probably need to finance the purchase of them. These are 4 top financing options for flipping houses that you can use to acquire as many properties as you want!

You can talk to us at Oracle Property Solutions about how to acquire more properties to flip, or to help you figure out how to invest with your IRA or 401(k). Just click here to enter your information or give us a call at (775) 721-2274.

Advantages Of Hard Money Lenders In Nevada

By Larry Crickon

Real estate investors know that buying property and fixing it up to flip or rent can be a capital-intensive process! Sometimes you need money to help you acquire the property or to bridge you to when you can sell or rent it out. There are many ways to access capital but one of the most popular ways to access capital is through hard money lenders. In this blog post you’ll read about the advantages of hard money lenders in NV.

If You’re An Investor, There Are Many Advantages Of Hard Money Lenders In NV.

Hard money lenders give you more access to capital

It’s not always possible to do deals with the funding, capital, or credit that you currently have. So hard money lenders give you more access to capital so you can acquire a deal or complete it.

Hard money lenders often have real estate investing experience

Hard money lenders may not personally be real estate investors but many of them will have looked at several real estate deals and they can help you understand if your deal is suitable for a loan or not – which might be an excellent way to help you determine the quality of the investment you’re looking at.

Hard money lenders may not need your credit

If you’re a real estate investor with bad credit or no credit, or if you don’t want to touch your credit because you need it for something else, a hard money lender might not need your credit to do a deal. (Some lenders will but some won’t). The reason is because they are making a secured loan – one that is backed by the asset itself.

Hard money lenders are a financial “tool” in your toolbox

As a real estate investor, you’ll tie up your capital and sweat equity into a deal. And if you can’t complete that deal (because you can’t fully acquire it or you can’t get it up to a level of repair for rental or resale) then the deal will stall. A hard money loan can ease that situation and get the deal moving forward so you can complete it. Hard money lenders are not your only source of capital but they can help – that’s one of the advantages of hard money lenders in NV.

Hard money lenders in NV are familiar with state laws

You can rely on hard money lender in NV to be familiar with the lending and investing laws of NV. That is a valuable knowledge to rely on, and it’s one reason why hard money lenders are a better capital source than other less formal capital sources.

Hard money lenders help you to do more deals

Perhaps one of the best advantages of hard money lenders in NV is that you can do more deals. A hard money lender will get you the capital you need to move forward to complete the deal, to earn more money so you can do another deal. Using the money and profit from your previous deal, and perhaps another loan from a hard money lender, you can do even more deals or even bigger deals or even faster deals or even more profitable deals… all because of the hard money.
If you’re a real estate investor looking to fund more deals, a hard money loan might be the right choice for you. There are many advantages of hard money lenders in NV so find out more about how a hard money lender can help.

Click here to enter your information and get in touch with us – let’s see if we’re able to help you!

4 Top Financing Options for Flipping Houses in Fallon, NV

4 Top Financing Options for Flipping Houses in Fallon, NV

By Larry Crickon

Flipping houses can cost money. Here are 4 top financing options for flipping houses to help you get started. Use one, some, or all of these financing options to acquire all the investment properties you want to flip!

If you’re thinking about investing in real estate, you have several options… you can rent, rent-to-own, wholesale, flip, and many other options as well! If you’re thinking about flipping, you’re probably looking to acquire an investment property and then fix it up to sell at a higher price. If so, here are 4 top financing options for flipping houses…

Flipping Finance Option #1

You can get a traditional bank loan from a mortgage loan lender like a bank or mortgage company. These are usually similar to the traditional mortgage loan that you might get for your residence: you pay a down payment and “use your credit score” to borrow the rest. Unlike your residential mortgage, you would sell the house to a buyer and then pay off the mortgage quickly.

The biggest drawback to this method is that you can usually only get a few mortgages in your name at once before the banks won’t lend you anymore. That will limit how many properties you can flip at once.

Flipping Finance Option #2

Another way to finance your flips is to partner with other investors so that each of you put in a portion of the total cost. For example, you might acquire a $100,000 property by finding 3 other investors and each of you put in $25,000.

Of course you’ll also need to figure out what percentage each person will invest in the renovations, and what percentage each partner earns at the end. In the example above, the simplest option would be for each partner to invest 25% and then get 25% back but some investors might prefer to be just “silent partners” while other investors might want to roll up their sleeves and do the renovation work!

If you’d like to flip some properties and perhaps want to partner with other investors, why not get in touch with us at (775) 721-2274 and we might be able to give you some suggestions or even make some introductions.

Flipping Finance Option #3

In some situations, you may be able to invest in real estate with your IRA or 401(k). This is a very smart strategy (although you should be aware that there are some restrictions and guidelines — so make sure you talk to an expert who can help you).

There are some significant tax advantages to using this financing option, so it’s one that you may want to consider if you have money available in your IRA.

Flipping Finance Option #4

Seller financing is a very powerful way to finance your investments. Using this method, you by pass the bank and the seller actually becomes your bank! Instead of getting a loan from a mortgage company, you simply get the house and pay the seller a regular “mortgage” payment each month until you’ve paid the entire amount off. Some sellers like this because they want to sell fast and like the cash flow.

Summary

If you’re an investor who wants to flip houses, you probably need to finance the purchase of them. These are 4 top financing options for flipping houses that you can use to acquire as many properties as you want!

You can talk to us at Oracle Property Solutions about how to acquire more properties to flip, or to help you figure out how to invest with your IRA or 401(k). Just click here to enter your information or give us a call at (775) 721-2274.

4 Top Financing Options for Flipping Houses in Elko, NV

4 Top Financing Options for Flipping Houses in Elko, NV

By Larry Crickon

Flipping houses can cost money. Here are 4 top financing options for flipping houses to help you get started. Use one, some, or all of these financing options to acquire all the investment properties you want to flip!

If you’re thinking about investing in real estate, you have several options… you can rent, rent-to-own, wholesale, flip, and many other options as well! If you’re thinking about flipping, you’re probably looking to acquire an investment property and then fix it up to sell at a higher price. If so, here are 4 top financing options for flipping houses…

Flipping Finance Option #1

You can get a traditional bank loan from a mortgage loan lender like a bank or mortgage company. These are usually similar to the traditional mortgage loan that you might get for your residence: you pay a down payment and “use your credit score” to borrow the rest. Unlike your residential mortgage, you would sell the house to a buyer and then pay off the mortgage quickly.

The biggest drawback to this method is that you can usually only get a few mortgages in your name at once before the banks won’t lend you anymore. That will limit how many properties you can flip at once.

Flipping Finance Option #2

Another way to finance your flips is to partner with other investors so that each of you put in a portion of the total cost. For example, you might acquire a $100,000 property by finding 3 other investors and each of you put in $25,000.

Of course you’ll also need to figure out what percentage each person will invest in the renovations, and what percentage each partner earns at the end. In the example above, the simplest option would be for each partner to invest 25% and then get 25% back but some investors might prefer to be just “silent partners” while other investors might want to roll up their sleeves and do the renovation work!

If you’d like to flip some properties and perhaps want to partner with other investors, why not get in touch with us at (775) 721-2274 and we might be able to give you some suggestions or even make some introductions.

Flipping Finance Option #3

In some situations, you may be able to invest in real estate with your IRA or 401(k). This is a very smart strategy (although you should be aware that there are some restrictions and guidelines — so make sure you talk to an expert who can help you).

There are some significant tax advantages to using this financing option, so it’s one that you may want to consider if you have money available in your IRA.

Flipping Finance Option #4

Seller financing is a very powerful way to finance your investments. Using this method, you by pass the bank and the seller actually becomes your bank! Instead of getting a loan from a mortgage company, you simply get the house and pay the seller a regular “mortgage” payment each month until you’ve paid the entire amount off. Some sellers like this because they want to sell fast and like the cash flow.

Summary

If you’re an investor who wants to flip houses, you probably need to finance the purchase of them. These are 4 top financing options for flipping houses that you can use to acquire as many properties as you want!

You can talk to us at Oracle Property Solutions about how to acquire more properties to flip, or to help you figure out how to invest with your IRA or 401(k). Just click here to enter your information or give us a call at (775) 721-2274.