Stock Market Investing

Did you know you can use your IRA or Pension plan to invest in real estate property? The majority of investors are feeling the pinch of the global recession and they don’t feel their investments are performing as they should. What these investors don’t realize is that there is another option out there for them called “private money lending”.

Make your Investments Work for you

Most people have been working for awhile have quite a large nest egg saved in their IRA allowing them to consider other options for this money such as private money lending for real estate. Private money lending using your investments in your IRA and other retirement plans is a widely acceptable practice and can offer a very large return when done properly. There are some things you need to know before you use private money lending as an option to earn money through high interest earning loans.

Self Directed IRA

In order to take advantage of private money lending using investments you must have what is called a self directed IRA or a roll over 401k through a custodian. This simply means that you are responsible for making investment decisions on behalf of the investment fund. This allows you to direct your funds anyway you choose fit including private money lending and investment options.

Choosing a Custodian

To get a self directed IRA you must first choose a custodian for your account and roll over your existing 401K account after a job loss, retirement, or change of jobs (transfer funds within 60 days to remain tax deferred). Your new custodian will help you fill out all necessary paperwork and information so the process can run smoothly.

Choosing a Good Private Money Lending Investment

After you have completed the rollover process and assigned a custodian, you get to participate in the fun part which is choosing your private investments such as real estate investment. Make sure you do your research and find a good real estate investment firm that has been in business for awhile. The majority of private money investing options will offer an annual fixed yield rate of 10% percent or more! That means that a 20K investment will yield a 2K annual return on investment or $167 dollars a month just for loaning out your money.

Security

Many private money investments are secured by personal guarantees adding another layer of protection to the lender. Not only that, but there are checks and balances along the way to ensure that you are getting the most out of your loan and protected in the event of a default.

In a lot of cases private money lending investments are outperforming the stock market. This investing method is 100 percent legal according to the IRS and you have complete control over what you invest in and how much.

Article Source:http://www.articlesbase.com/investing-articles/how-to-use-your-investments-wisely-and-benefit-from-private-money-lending-1125464.html

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This entry was posted on Monday, August 17th, 2009 at 8:14 pm and is filed under Stock Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.