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An article in Money magazine has confirmed what many real estate experts and savvy investors have already discovered: investing in rental property can pay off.

RE/MAX CEO Margaret Kelly recently professed this to attendees at Equity University’s Networking conference, and Equity Trust Company investor Neil Paulson also shared his recent successes from with investing in rental properties in his self-directed IRA. Money magazine is just the latest authority to confirm that the conditions are right to build real wealth by buying property and renting it out.

At first glance, the state of the current real estate market might seem dismal. But when you consider that all of the foreclosures are turning former homeowners into renters, there’s quite a demand for rental property – and plenty of inexpensive, foreclosed homes to buy up and rent out.

Consider these figures, from Money magazine:

“Mortgage rates are at a 40-year low, and homes in many areas are ultra-cheap. Meanwhile, demand for rentals has risen in more than 500 cities, according to recent Census data. That, in turn, has enabled landlords to charge more. Hotpads.com, a real estate research firm, reports that rents nationwide jumped 11.6% in 2010, to $1,320 a month.”

Conditions couldn’t be better, RE/MAX’s Kelly pointed out. But the one thing that might be holding some investors back is the perceived lack of cash to put into the investment. The good news is that you can use money from your retirement account to make the transactions. A self-directed IRA makes it possible to invest in non-traditional items, such as real estate. The best part: profits go back into the account, tax-free.

In addition to scoring historically low home prices and enjoying a captive audience of renters, you could be making money and keeping it all for yourself. Sounds like a no-brainer.

Click here to read the full Money article.

Click here for more information on buying real estate in your self-directed IRA.