With the looming expiration of moratoriums, it’s good to have a team lined up and ready when opportunities arise so you can make a solid real estate offer.

Looking for a way to get more bang for your investment in your retirement savings? A self-directed IRA (SDIRA) could be the answer to diversify your investments.

What is a Self-Directed IRA?

A Self-Directed IRA (SDIRA) is quite simply, an IRA. All IRAs abide by the same laws and possess the same capabilities. Unlike other IRAs held at banks, brokerage firms and other institutions, with a SDIRA, you’re not limited to stocks, bonds, or mutual funds. This means you can invest in virtually any asset including private funds, trustee notes and even crypto.

What are the benefits?

A Self-Directed IRA gives you the opportunity to build a more diversified and resilient portfolio. It allows you to take advantage of alternative investments such as real estate, precious metals, private equity, notes, and more. A custodian/administrator is required to do the record keeping for the assets in your account, but nothing moves in or out of it without your direction. You decide how much, when, and most of all, what to invest in, giving you the freedom to invest in what you know best.

Investing in Real Estate With a Self-Directed IRA

Real Estate is a popular investment among SDIRA holders because it is a tangible asset that people know and trust. With a SDIRA, you can invest in a wide range of real estate assets: residential or commercial properties, developed or undeveloped land, condos, hotels, mortgage notes, and more. Depending on what type of account you choose, earnings can continue to be either tax-free or tax-deferred.

How does investing a SDIRA in real estate work? Imagine you purchased a single-family property through your SDIRA. If you chose to sell it, your profits would go directly to your IRA. Alternatively, were you to rent out that same house, your income would go back into your IRA and any related expenses would be paid from your IRA. For more information about how to use your SDIRA to purchase a rental property, go here.

The level of control and flexibility associated with a SDIRA does come with its own set of responsibilities. For example, investments made with your SDIRA are owned by your SDIRA, not by you personally, making self-dealing prohibited. Click here for more information on SDIRA rules.

Getting Started With Investing In A Self-Directed IRA

The first step is to decide what type of account you want to open. Then, establish how you’ll fund it, and decide what your investment strategy will be. Speaking with a legal and/or tax advisor before you begin can help you to answer these questions.If a SDIRA sounds like it could be the answer to your retirement questions, get your copy of The Entrust Group’s Self-Directed IRAs Basics Guide today.

Many of our investors at Coastal Capital utilize this Self-Directed IRA Investments option with The Entrust Group to build safe, above average returns for their nest egg. To learn more about the fund please visit us here.

A hard money loan can provide quick relief

Real estate is interconnected with so many other industries, it’s not surprising that the real estate market is going through some ups and downs during COVID-19. Some landlords are finding themselves in tight spots when renters can’t keep up with their monthly payments. If you find yourself in such a situation, you might be able to negotiate with your mortgage lender, but many property owners are finding this to be a dead end after following a long rabbit hole. Fortunately, hard-money loans offer a viable alternative.

Especially in California landlords are facing challenges

Due to zealous restrictions, approximately 3 million California residents are unemployed, and about 1 million of those are renters. This naturally impacts their ability to pay their rent on time and in full. With about one in seven households struggling to pay their rent, many landlords are seeing the impact. Even though the unemployment rate is improving, it’s still in the double digits. Many tenants are still struggling to keep up.

For landlords with commercial tenants, it depends on the types of properties you own. For example, many bars, restaurants, and salons are suffering right now. They simply are not bring in the same revenue as before. However, if your properties are home to essential businesses that are thriving during this time, collecting rent payments might not be an issue.

Tenant protections in California

The recent tenant and landlord protection legislation prevents landlords from evicting tenants through Feb. 21, 2021. The law says that missed rent payments due to COVID-19 but how can you verify? Between Sept. 1, 2020, and Jan. 31, 2021, tenants must pay at least 25 percent of their rent to qualify for this protection. For most property owners, that’s not enough. It’s true that tenants aren’t completely off the hook—landlords can start recovering debt in March. But what are landlords to do about the months in between?

In addition any landlords are lowering rents for a period of time for existing tenants and offering discounts in order to entice new tenants to rent vacant spaces. Incentives include free rent for one month, free parking, and more. Such offers might get new tenants in the door or keep existing renters in the building. However these types of concessions put a dent in landlords’ wallets.

How a hard money loan can help during the COVID-19 pandemic

Hard money loans are based on your equity in the property, not on your personal financial history or credit score. This means that if you have enough equity, you can get a hard-money loan to cover the gap. Even if you can’t secure a traditional bank loan with enough equity you can get cash in a week.

These trust deeds are designed to provide short-term capital to help you cover the mortgage and related expenses until you’re able to generate more rental revenue. Most importantly hard money loans enable property owners to keep current on their mortgages, avoiding expensive late fees and expensive default interest charges. Often the costs with obtaining a small hard money loan far outweigh the costs of going into default on a property.

Coastal Capital Group is here for you

If you have tenants who aren’t able to keep up with their rent, Coastal Capital allows you to use your equity to secure cash. Hard money loans close fast—think days, not weeks—so you can keep up with your monthly payments even if your renters can’t. For more information and to learn more please Apply today.

Get a loan to flip a house, with the right lender.

Want top dollar when selling mortgage notes?
Increase the value with payment histories!

Owner Financing doesn’t have to mean waiting years or decades to receive money.
Sellers have the choice to sell all or just part of their future payments for cash today.

It’s a tough time to sell a house.
Hoping to stand out from the crowd, sellers are advertising “Owner Will Finance!”
Accepting payments over time provides buyers an alternative to bank financing. Of course sellers don’t want to trade a house that won’t sell for a buyer that won’t pay.