Unique Investing Program Yields High Returns For Self-Directed IRAs

I’ve been a volunteer for the Adult Education Center here in town for the past few years. We hold all kinds of classes designed to help people better themselves and prepare for many of the challenges of the workplace. From time to time we also support individual lecturers who hold one-time presentations along the same lines. I was one of the volunteers on the evening that a young man by the name of Eddie made his presentation on preparing for retirement. This turned out to be one of the most popular classes we’d ever held.

For this particular class there was standing room only. I guess that’s not so surprising in light of what’s been going on in our financial markets lately. I actually felt empathy for Eddie as he fielded dozens of questions about the stock and housing markets in the United States. But it turned out that Eddie is a professional. He handled the questions well and managed to instill a sense of calm throughout the crowd. Once people had settled in and realized that Eddie had a lot of valuable information for them everyone listened attentively. And what a presentation he gave.

His primary focus was on retirement – specifically, individual retirement accounts or IRAs. He explained that an IRA was a wonderful way to accumulate money for retirement because the accumulated wealth in your account is not taxed until you actually retire and begin to draw it out – and then it’s taxed at the regular tax rate. He also explained how powerful the tax-deferred status of an IRA was because it allowed retirement funds to grow without the drag of having to pay taxes. He fielded a lot of questions around these concepts before moving forward with his presentation.

With the basic explanations of regular IRAs out of the way, Eddie went a little further in explaining self-directed IRAs. These accounts are essentially the same as the ones we’ve already mentioned except that the account holder actually directs how the funds in the account should be invested. Then Eddie shifted gears a bit and explained a program that was becoming quite popular in certain communities.

There is a program available where people can not only earn great returns in their self-directed IRA, but they can also help working class people and their communities. Someone in the audience shouted out that what Eddie was talking about sounded like real estate investing. Eddie confirmed that it was. And once again there were dozens of questions. With the sub-prime mortgage crisis still making news along with virtually every residential real estate market in the country declining, people wanted to know how and why real estate was a good investment. And again, Eddie showed that he knew his stuff.

He explained that with real estate values down so far there were a multitude of super bargains in most communities. And the program he described was perfect for taking advantage of such bargains. Essentially, the program looked to blue collar communities that were rundown and in need of attention. Once a community had been identified, people were shown how to enter the community, purchase properties at rock bottom prices and resell those properties to people who were actually waiting for quality properties in that community. Of course, they didn’t do this on their own. They did it with help of a particular company that had people and other resources in place to facilitate the entire operation. And the results were phenomenal.

Eddie showed examples of neighborhoods and communities that had participated in such projects. Literally everyone involved in such programs had come out winners. First, investors were needed to provide the capital to get the program started. Next, people were put to work rehabbing certain properties. Another benefit was that rundown properties were being purchased and restored, which brought life back to neighborhoods. In turn, this helped to bring pride back to these communities. And finally, the program made housing affordable to honest, hard working families. Everyone the program touched was far better off. And the majority of the work had been accomplished with private, not government funding. Everyone involved was a winner.