We are finding out the hard way in a Contract for Deed we purchased in Alabama about the Power of the Power of Sale Clause. The Power of Sale clause is one of many clauses written into most mortgages which will allow the lender or owner of the mortgage the power to sell the property in the event of a default by the homeowner, in order to pay off the mortgage debt. It is for all purposes the equivalent of a foreclosure, without having to foreclose judicially in non-judicial States.
Are you getting your piece of the incredible profits available from foreclosure opportunities?
Wholesaling, Fix and flip, rentals however you decide to make money, right now the investment window has never been better.
However, it takes money to make moneyâ€¦
Have you thought about using your IRA, 401k, 403b or other retirement monies?
You have no doubt heard that you can do this but did you know that the old fashioned IRA is NOT real estate friendly?
Congress recently created a much better plan to use, a self administrated (SA) Defined Contribution (DC) plan. This type of retirement plan is very friendly for real estate investing.
In todayâ€™s real estate market it is difficult to hide from the fact that foreclosed homes are quickly becoming a large part of the available inventory on the MLS (Multiple Listing Service). Real estate investors who in the past have primarily looked to other sources for their deals are turning more and more to foreclosed homes and working with banks as a way to profit.
Hot foreclosure deal and you need the money now?
Don't look to your IRA as it can't do much to help you out since you cannot borrow from your IRA.
Just so you know, there is an IRA provision that will allow you to â€œwithdrawâ€ any amount you choose for any purpose.
NOTE: This may be done only once every consecutive twelve months and you must replace the monies within 60 days.
There is NO compromising these requirements. Failure to adhere to these two rules will result in those monies being deemed distributed with the resulting taxes and/ or penalties.