Recent Racket on REITs

Word on the street (Wall Street, that is) is that REITs may finally be seeing some increase in value. This is good news because anything real-estate related seeing some kind of increase could be a sign that the US economy is stabilizing.

In a recent article by the Wall Street Journal (see REITs: Better but Not All-Clear), REITs were highlighted as an investment opportunity on the rise. In fact, the Dow Jones All REIT index, has doubled since last spring. That being said, though, the very same index lost 75% of its value between February 2007 and March 2009.

The interesting thing about this article, to us, is how much talk there is about the premiums put on REITs for speculation. The reason many people come to Guidant to explore a self-directed IRA for real estate investing is because the speculation is largely taken out of the equation.

Don’t get us wrong, there will always be some sort of speculation and calculation involved in any kind of investment, but the fact that this article has to point out that “REITs now trade at a roughly 20% premium to the net value of their real estate,” makes us want to roll our eyes. Several times.

What does that even mean? 20% premium for what?

According to the article, it’s a premium for optimism; Optimism that the commercial market is on an upturn.

Would you like to pay a premium for optimism?

Maybe, but we’ll bet that you’d rather pay a premium for real returns. It’s exciting that there’s a positive rumble around REITs – because that means that there’s a positive rumble around real estate. But, for our self-directed IRA clients who invest in real property, this is even more exciting. For them, this rumble really can become a reality.

It’s Coming!

The end of the year is almost here! What does that mean? It means that the time you have left to make your 2009 contributions is limited!
According to the IRS website (www.irs.gov), the 2009 contribution limits for traditional IRAs and Roth IRAs are:

- $5,000 (depending on your modified adjusted gross income)
Or
- $6,000 if you are age 50 or older before 2010 (depending on your modified adjusted gross income)

To find out more about 2009 contribution limits, see Publication 590.
Although you may not have to make your 2009 contributions before December 31, 2009, if you are on an employer sponsored plan, such as a 401(k) or 403(b), you may be required to make your final 2009 contributions as part of your next pay check (the last of the year).
For many people who are paid bi-monthly, this means that they have already passed the deadline for ’09 contributions. That being said, this is always a great time to sync up with your benefits department and make sure you are getting the full max out of any employer contributions or matching for the year.

Remember, the more you save today – the more you will have to spend later! Furthermore, for those of you with employer-sponsored plans, while we cannot typically roll those funds into a self-directed IRA until you terminate employment, or reach the age of 59 ½, the more you put in today, the more you can invest in non-traditional assets later!
Happy contributing!

The Benefits of a Real Estate IRA

There are thousands of real estate opportunities to profit from for those that are prepared to reap the rewards. Property owners are feeling the affects of the economic downturn and are selling their holdings in an attempt to keep the proverbial “shirt on their back.” A real estate IRA is an ideal investment vehicle for taking advantage of these opportunities. It allows you to diversify your holdings from traditional investments such as stocks, bonds, and mutual funds while enjoying tax-free growth.

If you’re like most investors, you saw a decrease in your retirement holdings over the past couple of years. Well, now is the time to recoup those losses with a real estate IRA and get those holdings back to their lofty levels. Contact a Guidant representative today to find out how you can profit from a real estate IRA or self-directed IRA.
What Type of Real Estate Can I Purchase?
• Improved or unimproved land
• Detached homes
• Semi-detached homes
• Co-ops
• Condos
• Apartment buildings
• Office buildings
How Real Estate IRA’s and Self-Directed IRA’s Work
When you purchase a property in your Self-Directed or Real Estate IRA, the income and appreciation accrues tax-deferred or tax-free. To retain this tax-free wealth-building status:
• The entire real estate transaction must be processed through the self-directed IRA.
• You cannot purchase property that you or your family members already own with a real estate IRA. It will be construed as a disbursement and early-withdrawal tax and penalties will apply.
• You or immediate family members may not live in or lease a property while it’s in your plan.
A Guidant representative will cover all prohibited transactions within a real estate IRA to ensure you aware of potential conflicts.
A self-directed IRA allows you to invest in a wide array of investment vehicles including:
• Real estate
• Private businesses
• Franchises
• Tax liens

Guidant will set you up with a Self-Directed IRA LLC that will allow you to act as your own custodian for the plan. You’ll be able to take advantage of time-sensitive investments by simply writing a check from the IRA fund. You can save thousands of dollars in transaction and asset-based fees while building your retirement wealth tax-free.
A Self-Directed Real Estate IRA will allow you to:
• Instantly purchase foreclosed properties and tax liens without “jumping through hoops” to get the deal done.
• Purchase commercial, residential, and rental properties.

Guidant makes real estate investing easier. You act as your own real estate IRA custodian so that you can take swift action when a profitable opportunity arises. The economists are telling us that the economy is in recovery which means that whoever is positioned to take advantage of opportunities will be the winners. Contact Guidant today to discuss the benefits of a Self-Directed IRA or Real Estate IRA.

How to Use a Self-Directed IRA for Small Business Investing

When many investors think of a self-directed IRA, they believe that it only gives them the opportunity to invest in stocks, bonds, and mutual funds of their own choosing. While it is true that you can invest in these vehicles, a self-directed IRA offers more options. Other investment options include real estate IRA’s, personal business investment, franchise opportunities, partnerships, private equity, and tax liens.

Most banks and brokerage firms neglect to tell you about these other investments due to their vested interest in selling you stocks and bonds. For example, if you decide to invest in your own small business, these firms do not earn any revenue. Guidant believes that you should be aware of all options for investing your retirement funds. After all, it’s your money. Contact a Guidant representative today and find out how a self-directed IRA can assist you with small business financing.
Use Retirement Funds for Small Business Investing
Whether you need start-up funds for a small business, franchise financing, or just want to diversify your retirement holdings, a self-directed IRA can provide you with the flexibility to make your own choices.
The job market has “tanked” and even if you land a position, the wages are not what they once were. Many individuals have taken the opportunity to strike out on their own and follow their dreams of owning their own business. They’ve had enough of the broken promises of job security and are taking control of their destiny on their own terms. And they are financing their small business by utilizing self-directed IRA’s, 401k, and other retirement funds without early withdrawal penalties or taxes.

The Guidant 401(k) Plan for Small Business Investing

The Guidant 401(k) Plan for small business financing allows you to invest your retirement funds in your own enterprise. A brief overview of the process is as follows:
• Guidant will assist you in setting up a C-Corp business organization for your new business or franchise.
• We will guide you through the process of setting up a 401(k) for your new business.
• Your retirement funds will be rolled over into the new Guidant 401(k) plan.
• The new 401(k) plan then purchases shares of the new corporation…namely, your new business.
• This small business funding option provides working capital from your retirement plan without taxes, penalties, or debt.

The Guidant 401(k) Plan for small business financing allows you to start your own business and, at the same time, control your retirement fund growth. If you’ve always wanted to start your own business but financing stopped you, the Guidant 401(k) Plan offers an ideal solution. Contact Guidant today for a free consultation on how to realize your dreams of business ownership.

Invest IRA in net leased real estate

When: Tuesday, August 25, 2009 9:00 AM - 10:00 AM PDT (PST)

With underperforming U.S. stocks and potential in the real estate market, now may be the time to invest in the potential of Net Leased Real Estate.

Join Forrest Moore, Self Directed IRA expert with Guidant Financial Group along with Ned Coyle, VP of Investment Properties and Brokerage Services for CB Richard Ellis, a licensed Financial Advisor in Toledo OH. Learn about:

• How to invest in Single Tenant Net Leased Real Estate
• The Costs of Occupancy
• Benefits of Investing in Single Tenant Properties
• Why Now is a Good Time to Invest in These Properties
• How to invest IRA/401k funds into Net Leased Real Estate

Guidant does not recommend any investments, but we do help individuals set up self-directed IRAs for investing in real estate. If you have ever considered purchasing net leased real estate, you should not miss this event. This webinar will begin promptly at 9a (PST) on Tuesday August 25th.

Register Now!