San Antonio Housing Market Still Booming in September 2017

Home sales continue to climb in San Antonio and are staying on track for another strong, record-breaking year even though there are fewer homes available on the market.

In August, there were nearly 3,000 homes sold in San Antonio, for a 2.3% increase from 2016. The total number of homes sold for 2017 are 20,867, which is 4.3% above last year at this time. Experts believe that the market is going to break the previous record when almost 30,000 homes were sold in a year.

The median home price in San Antonio is up 3.1% in August to $218,400. This is the fourth highest median price ever in the San Antonio market. Local home prices are shooting higher as there is a shortage of construction workers and more housing demand caused by the growing population in San Antonio.

It is true that housing prices are going up in San Antonio. Still, I am finding plenty of under market value, San Antonio investment properties available for my portfolio. Blue collar workers flocking to San Antonio for jobs need houses to buy with owner financing or to rent, so my business is still doing well.

San Antonio generally is still a good place to invest in under market value, high ROI investment properties, even if prices are higher than 2010. The strong, growing population and low unemployment rate indicate that this is a growing, robust economy with little signs of slowing down.

I am seeing more accredited and non-accredited investors with solo 401ks and self directed IRAs buying investment properties in San Antonio for their portfolios.  Below is a great under market value property that will see major appreciation in the next five years.

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Potential more than 40K in profit on this investment. 1614 Alametos, San Antonio, Texas 78201. Excellent location, just north of downtown with a short distance to the river walk and the new San Pedro creek river walk extension (multi-billion dollar inner city revitalization project).

Properties in this location are expected to appreciate by more than 50% in value over the next two to three years. 1614 Alametos has a large back yard with shady trees. Currently the property is set-up as 2 bedrooms and 1 bathroom with a large patio in the back of the house. To get the maximum value out of this property and location, another bedroom and bathroom should be added. Estimated repairs: $65K with purchase price: $69K. Max After Repair Value: $199K.

Note: 1622 Alametos just down the street was sold to an investor in 2015 for $65,000. With $15,000 of rehab, the property was sold for $99,000 with owner financing for a 13% ROI. Home was sold within one week.

Price: $69,000

Exit Strategy: Buy, Rehab and Hold this San Antonio investment property.

How an Investor Can Make 13% ROI in Their 401 or IRA Retirement Portfolio

Many people today are worried about saving enough money for retirement. If you are going to rely on the stock market to ensure that you can live comfortably in 10, 20 or 30 years, I understand why you may be nervous. While the historical returns of the stock market may be in the 8% range, there is no doubt that some years, the return is much less. If you are planning to retire in a few years and the market dives, you may find yourself not retiring at all.

I know someone who planned to retire in 2007 and live comfortably. After the market crashed, he had to go back to work for another five years.

The good news is that you can make a reliable 10% or even 15% ROI per year if you purchase under market value real estate investments. I have made a fortune with San Antonio investment properties over the years.

A popular way to make money for retirement today is to invest in under market value real estate in San Antonio in a solo 401k or self directed IRA. These funds can grow tax deferred over time, and you can often make an excellent rate of return.

Even after you technically retire, you still can invest in under market value real estate and enjoy cash flow. It may not be tax deferred any more, but you can still enjoy positive cash flow. Meanwhile, your friends and relatives are living off their retirement savings accounts based upon the stock market, which frequently dwindle over time.

Below is a great example of what you can do with an under market value investment property with a solo 401k or self directed IRA.

new front
$65,000 cash price, $15,000 rehab, resold for $99,900 owner finance, $1041 per month, 7 DOM, 12.9% ROI.

Still, we have CA investors coming into our fine city and buying property investment homes and making 12-13% ROI annually, with no property maintenance.

This San Antonio investment property was purchased by a CA cash buyer in July 2015 at 1622 Alametos St. This house is in 78201, and is north of downtown. This region is seeing rapid growth and appreciation.

The bottom line on this property was with only $10,000 of rehab, it was sold with owner financing at $99,900 in only a week after it was rehabbed. Here are the numbers:

  • $1041 per month
  • 30 year note
  • 10% interest rate
  • $5000 down payment
  • $99,900 final price
  • $216/mo. taxes/insurance

The total return on this San Antonio investment property was 13% per year.  That money is being returned to the investor’s solo 401k account each month, and he will use that money to eventually invest in more San Antonio investment properties.

This is what you can do with investing in real estate properties from within a solo 401k or self-directed IRA. Whether you are an accredited investor or a non accredited investor, this can be a great financial move.

Building Real Estate Wealth – Watch Out for This Expensive TAX TRAP!

If you plan on using financing to help your IRA to acquire real estate you have walked smack dab into one ugly tax trap under the name of “Debt Financed Income”. Financing or as the tax law refers to it as “leverage” refers to obtaining a Mortgage, seller carry-back note, a private or hard money loan.

Normally income earned by an IRA is not subject to taxes, however, if real estate is purchased with borrowed funds, the income will be considered “Debt Financed Income” and the profits generated will be subject to “Unrelated Business Income Tax (UBIT).

Huh?

The simplest explanation is, that the IRA is using non-IRA money to make tax deferred profits. Since the purpose of the IRA is to invest personal pre-tax contributions the use of non-IRA funds falls outside this design and results in a percentage of profits being taxed at trust tax rates in the calendar year when the profits are realized.

Here is an example, if your IRA purchased a property for $100,000, and financed $60,000 of the purchase price, the debt/basis percentage would be 60%, and so the IRA would have to include 60% of the profits as taxable income.

Lets say your profit on the sale of this single family house was $50,000 x 60% (debt basis) then $30,000 is considered “Debt Financed Income” and is subject to  “Unrelated Business Income Tax” which is assessed at trust tax rates – in this case up to 39.6% which amounts to a kick in the gut tax hit totaling $10,238.00

Oh by the way, if you think you can dodge the bullet because you are going to rent the house, think again. The net profits from your rent roll are also subject UBIT each and every year– Yikes!

Wouldn’t is be great if “Unrelated Business Income Tax” could simply disappear?

This is where choosing the right type of plan makes all the difference in the world.

A One-Participant 401k plan is NOT subject to UBIT as long as the financing is non-recourse to you personally. Congress actually created a special tax code exemption for Qualified Pension Plans (401k’s) that removes them from the profit sucking UBIT vacuum an IRA cannot escape.

Choose a One-Participant 401k plan and you can gorge yourself on all the financing you want to and invest in high ROI real estate properties for wealth building. Under market value real estate investments are a great way to build wealth, and the solo 401k is the way to do it.

  DAVID COLE
ph:  928-350-8368
fax:  928-318-6695
website:  www.freedomfirst401k.com

Building Wealth In Real Estate Investing with a Solo 401k

One of the major purposes of investing in real estate in San Antonio and other places is to build wealth slowly over time. One of the most important ways to do so is to invest in high ROI real estate investments that are protected from US taxes.

Many real estate investors automatically decide to invest in real estate with a self directed IRA, which is a perfectly good way to invest. But there are other options that are worth considering; in fact, a solo 401k can often be superior to an IRA for investing in real estate. But most people are not aware that a solo 401k can be created by a private individual to invest in almost anything, including real estate.

Here are some things to know about the solo 401k:

  • It is a one participant 401k plan, and is just like a traditional 401k plan but it just covers one ‘worker’ – you.
  • Unlike an IRA, you can contribute up to $60,000 each year
  • A solo 401k plan has an employee and profit sharing option but a traditional IRA has a low annual contribution limit. For those over 50, you can make a maximum contribution of $24,000 in a 401k and that can be pre tax or after tax.
  • A solo 401k may be contributed to in either Roth or pre tax format, but a self directed IRA may only be made in pre-tax.
  • Tax free loans: A solo 401k allows you to borrow $50,000 or 50% of the account value. You can use the loan for whatever you want. A self directed IRA cannot be used to borrow funds without it being a prohibited transaction.
  • You can open your 401k at many banks yourself. But with a self directed IRA, you have to use a custodian to hold the funds.
  • You do not need to make an LLC with a 401k. The plan itself may invest in real estate investments without an LLC. A 401k plan by definition is a trust, and the trustee may take title to real estate property without an LLC being formed (another expense).
  • Much better protection from creditors: A solo 401k is a fortress against lawsuits and creditors. It offers far better protections than an IRA. The 2005 Bankruptcy Act will normally protect all 401k assets in a bankruptyc. Most states also have more creditor protection in a solo 401k than a self directed IRA – outside of Chapter 7, 11, or 13 bankruptcy.

Once you have established a solo 401k, you only need to decide which under market value real estate investments that you are going to invest in.

Seize Control of Your Own Wealth Management Now!

We’re living in a very exciting time and savvy investors are wasting no time in putting their retirement plans to work to capture juicy real estate investment returns. People everywhere realize that the real estate opportunities available right now will most likely never be repeated again during their lifetime.

Is your retirement nest egg still sitting there at the mercy of the stock market? A market which can drop like a lead balloon at the mere mention of a negative rumor. Perhaps it is time to rethink your retirement plan investing options?

Most people hold their retirement savings in traditional and widely-known vehicles such as; company-sponsored 401k plans, online IRA brokerage accounts and the like. But these are the same vehicles that have people up in arms due to the gut wrenching losses they have experienced.

You see, most “traditional” retirement plans only offer limited selections that are based in the equities markets. Problem is, these investments are driven by and subject to whatever impacts Wall Street and lately that has been just about everything.

Maybe you were among the millions of people who were pummeled in 2016 by two major corrections that resulted in $3 Trillion dollars evaporating overnight. How many people saw their retirement dreams go up in smoke in less than 24 hours? If you are sick and tired of the roller coaster ride on Wall Street then perhaps it’s time you explored so called, non-traditional investing.

Wall Street lives by two iron clad rules. Get CONTROL of your money and keep CONTROL of your money – anything else is unacceptable to them. They have absolutely no interest in helping educate you that they are NOT the only game in town.

A Self-Directed Retirement Plan = Freedom of Choice!

Self-directed retirement plans can help you break free of the investment restrictions your current custodian places on you. By utilizing a self-directed plan, a whole world of alternative investments opens up.

It’s not difficult to transfer your money over to a self-directed custodian. Your custodian of choice will walk you through the process of transferring assets into your self-directed plan and will also provide you with guidance on what you can and cannot invest in with your new retirement account.

Just what types of real estate investments open up to you with a self-directed retirement plan?

Here is a just a partial list of idea starters-

  • Raw land
  • Residential homes
  • Commercial property
  • Apartments
  • Duplexes
  • Condos/townhomes
  • Mobile homes
  • Real estate notes
  • Real estate purchase options
  • Self-storage units
  • Tax liens certificates
  • Tax deeds

All of these investments and more are available when you have a self-directed retirement plan! Take control of your own wealth management!

I have no doubt your curiosity has been piqued by this brief article – stay tuned as the next series of articles will pull back the curtains revealing even more about the secret that Wall Street hopes you’ll never discover.

  DAVID COLE
ph:  928-350-8368
fax:  928-318-6695
website:  www.freedomfirst401k.com

FREE IRA book: http://freedomfirst401k.com/self-directed-ira-guide/

Reserve your personal consultation: http://meetme.so/davidcole