Note Buying In Self Directed IRA
I am thinking of starting a self directed IRA. I want to rollover about $40,000 from a 401k. Is this a good idea? Is this enough money to start? How would I find people looking to sell their notes?
Thanks in advance.
Start by buying one from a broker who advertises in the newspaper - a small one. From the experience you wil learn what it is about. Buy subsequent ones direct - by the time you do this you will know how.
While it is easy to use a SDIRA to buy notes, and it is a good play, you've touched on the real problem...finding good notes.
Right now, there are so many note broker wannabes being stamped out by the later night 'gurus", such as Russ Dalby, etc., that decent, unshopped notes are rather hard to find.
And with new loan interest rates being at such a low, owner carryback notes are at a low point.
One niche I've hit upon, where there is demand, in my area and yours, is purchase money for MHs in MHPS.
It's not hard to find really good credit buyer and good value DWMH for sale, where they both want the deal to work, but just need the purchase money.
So to have you with your IRA, come in and buy, at a substantial discount, at closing, that buyer's note, is a Godsend to both S&B,
Suggest you start telling MHP Mgrs that you do have purchase money available for good value, good condition DWMHs, for good credit buyers, and you'll get some action.
I just finished one like this and bought the buyer's note at a discount that's going to give me 18% per annum yield on my $$$....and it could easily have been done by my SDIRA.
In fact, this inspires me to write an article on this strategy so watch for it...Joel W permitting!
I know I am late with this but thanks for the replys.