IRA Uses in Real Estate Investment

I ran across this on ExpertClick's blog:



The Real Estate IRA - Stock Market Alternative

DENVER, CO

Investors looking for an alternative to the stock market are discovering the advantages of real estate investments within their IRA's and searching for educational tools to explain the process and offer reassurance. In a free series of educational webinars, Chris Yates, President of CM Yates Inc in Denver, has become the first-choice resource in both teaching the steps and investing their funds. Yates has filled in the answers for numerous conservative investors alarmed by the diminishing returns on their IRA and personal investments. Free webinars can be viewed at: http://cmyatescapital.com

Self-directed IRA companies including Entrust New Directions IRA have used Yates as a resource for educating their clients. Yates' company, CM Yates Capital, provides information on investment options created via private real estate investment fund models. Yates himself is no stranger to center stage, having been featured in national and international media. Example articles can be found at http://cmyatescapital.com

Praised by Personal Real Estate Investor magazine in Nov/Dec '08 for his creative financial strategies in an article titled "Assured Returns by the Numbers," Yates is once again in the PREI spotlight in the Sept/Oct '09 issue. Publisher Andrew Waite says that "CM Yates Capital is showing every other real estate investor how to get money for the hundreds of great deals available now in every market"

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Denver Home Prices Up 5 Months In A Row

This from the Denver Post.

I tend to wonder if we are in a mini-bubble with the $8,000 tax credit deadline looming. I was speaking with my brother-in-law about property prices in Aurora and how a 3 car garage home in Southeast Aurora can sell (or at least be listed) for more than a home in Stonegate in Parker. We were at a loss. Bidding on homes in Aurora is a nightmare. We recently offered $5,000 over listed price on my sister's dream home in Aurora. The agent called us back and said that we were up against a bidder that put into his contract a provision that they will beat any offer by $500.

Comparing the home to recent sales in the area, I had difficulty believing it would even appraise at the listed price.

When we got our highest and best notification, the listing agent asked that we strike the appraisal contingencies. He stated that the seller was worried that the property may not appraise and he was willing to give contract to the offer that would withdraw the contingency. In other words to the bidder who would pay above appraised value. We could not do that.

We lost the home. All of this on a re-sale. Foreclosure bidding is even bloodier.

Metro Denver home prices up 5 months in row

By Steve Raabe
The Denver Post

Posted: 09/30/2009 01:00:00 AM MDT

Metro Denver home prices rose for the fifth consecutive month in July, offering another signal that the depressed real-estate market has turned around.

Area housing prices increased 1.5 percent from June but were down 2.9 percent compared with July 2008, according to the Standard & Poor's/ Case-Shiller home-price index.

Each of the index's 20 U.S. metro markets fell from a year ago, although Denver fared third-best by having the lowest annual drop after Cleveland and Dallas.

"The rate of decline in home-price values continues to decelerate, and we now seem to be witnessing some sustained monthly increases across many of the markets," said David Blitzer, chairman of the index committee at Standard & Poor's.

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More Evidence We Coming Off The Bottom

This from the Denver Business Journal:







Tuesday, September 29, 2009, 11:00am MDT | Modified: Wednesday, September 30, 2009, 10:08am

Case-Shiller Index: Denver home prices rise again, getting closer to 2008 levels

Denver Business Journal - by Mark Harden

Home prices in the Denver area rose in July for the fifth straight month, and prices are creeping closer to where they were a year ago, according to Standard & Poor's closely watched S&P/Case-Shiller Home Prices Index.

Home prices in Denver rose 1.5 percent in July from the previous month, according to the index report, released Tuesday. That follows a 2.5 percent month-over-month rise in June, a 1.3 percent increase in May, a 1.5 percent rise in April and a 0.1 percent gain in March.

Those increases followed month-over-month price declines in January and February.

As for year-over-year changes, Denver home prices fell 2.9 percent in July from the same month in 2008, down from the 3.6 percent year-over-year decline in June and the 4.6 percent drop in May.

Denver's year-over-year decline in July was the third-smallest of any of the 20 U.S. cities tracked by the Case-Shiller Index, bested only by Cleveland (a 1.3 percent decline from July 2008) and Dallas (a 1.6 percent decline). All 20 cities declined to some extent.

Link To Article

Castle Rock Law Firm Robinson & Henry, P.C. Rolls Out the Bankless Financing Program®

Robinson & Henry, P.C. has inaugurated the Bankless Financing Program, or BFP for short to help increase home sales in Colorado. The buyer can buy and the seller can sell, without need for a bank or mortgage company.

The Castle Rock, CO Law Firm of Robinson & Henry P.C. has announced that they are inaugurating the Bankless Financing Program also known as the BFP® to increase home sales in Colorado. The Bankless Financing Program® allows a Home owner to sell his property and a Home buyer to buy the property without need for a bank or mortgage company to be involved.

"We have seen the need for a new method to allow homes to be sold and we believe that the Bankless Financing Program® will satisfy that need. In Douglas County, Colorado, the number of real estate conveyances has dropped to only one third the volume of a few years ago. This can't go on. The current mortgage backed system is obviously broken and we want to be part of the solution," Mike Robinson, Sr. Partner at Robinson & Henry said.

Under the BFP®, the buyer makes payments to a Licensed Escrow Corporation which in turn makes all required payments to the underlying encumbrances on the property. Because of recently passed federal legislation, a working couple can make the purchase down payment with funds from their tax sheltered account such as an IRA without penalty and have the income tax issues satisfied with a federal tax credit. The BFP® addresses current difficulties caused by appraisal and credit issues for both buyer and seller.

http://mikerobinson.com/

A Serious Warning From the Federal Reserve about Interest Rates

If you follow Peter Schiff: One of his predictions, exploding interest, has not yet become reality. I picked this up from the Economic Policy Journal Blog.

This certainly won't help the housing market.

I believe the use of installment land contracts will surge. A matter of fact, Robinson & Henry in Castle Rock, Colorado have already resurrected the ILC's and coined the name Bankless Financing Program.

The ILC's were set up in the 70's when interest rates were in the double digits. Since individuals could not purchase a home at 18% they would pay the seller's loan (at the lower interest rate) through and outside escrow company. Installment Land Contract is also known by the name Contract for Deed.

Robinson & Henry is actively closing without banks.

A Serious Warning From the Federal Reserve about Interest Rates

This gets a bit technical, but the Federal Reserve is flashing that there could be serious, I am talking major league serious, interest rate hikes down the road.

The first clue to this was last week Thursday's report out of FT that the Fed may use mutual funds as a source to shrink Fed reserves by conducting reverse repurchase agreements with the the funds. When something like this is leaked by the Fed, they are trying to alert the markets so they won't be surprised by such a move when it occurs. As I wrote last week, I saw one reason for this move as the Fed:

...contemplating doing this, if banks start to lend against excess reserves, as a back up to Bernanke's plan to control money growth via the interest rate it pays on excess reserves.

Okay, so the Fed has a back up plan, but now there is an interesting story in WSJ's weekend edition headlined: Official Sees Aggressive Rate Boosts in the Offing. The story reports:

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