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Major opportunities for all-cash IRA real estate investors, as banks become more realistic on the market for short sales

U.S. homes nearing foreclosure accounted for 12 percent of total sales in the second quarter as banks agreed to more transactions at prices below the outstanding mortgage balance according to RealtyTrac Inc. The proportion of sales of homes in default or scheduled for auction rose from 10 percent a year earlier and was little changed from the first quarter, the Irvine, California-based information company said today in a report. Most of those were short sales, or transactions for less than the mortgage debt.

An increase in short sales, along with a shorter average time to sell such homes and bigger discounts relative to normal deals, indicate the market is clearing distressed properties more efficiently. Total pre-foreclosure deals rose 19 percent from the first quarter, while slipping 12 percent from a year earlier, when a federal tax credit pumped up demand.

“This is a glimmer of hope that lenders are getting more realistic, a spokesperson for RealtyTrac, said in a telephone interview. “It’s a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers.”

Pre-foreclosure homes took an average of 245 days to sell after receiving the initial foreclosure notice, down from 256 days in the first quarter. The average sale price was $192,129, a discount of 21 percent relative to non-distressed homes. Discounts averaged 17 percent in the first quarter and 14 percent a year earlier.

Sales of distressed properties, which also include homes seized by banks, totaled 265,087, down 11 percent from the second quarter of 2010 and up 6 percent from the previous three months. The average price of all distressed homes sold in the second quarter was $164,217, down less than 1 percent from the previous period and almost 5 percent from a year earlier. Such properties sold at an average 32 percent discount, compared with a 27 percent discount in the first quarter.

Take Control of Your Retirement Funds Tax-Free!

The Self Directed IRA structure has become a popular choice for gaining total investment control (“Checkbook Control”) over your IRA funds and making investments tax-free.

IRA Financial Group’s Self-Directed IRA LLC with “checkbook control” solution is tax court and IRS approved. A special purpose limited liability company (“LLC”) is established that is owned by the IRA account and managed by the IRA account holder – which is YOU. The IRA Custodian then transfers the IRA Holder’s retirement funds to the new IRA LLC’s bank account, which can be opened at any local bank account providing the IRA holder with “checkbook control” over his or her IRA funds. When you find a real estate investment that you want to make with your IRA funds, as manager of the LLC, you will simply write a check or wire the funds straight from your Self Directed IRA LLC bank account to make the acquisition. All investment income and gains would flow back to your Self-Directed IRA Tax-Free! The Self Directed IRA real estate with “checkbook control” allows you to eliminate the delays and costs associated with an IRA custodian, enabling you to act quickly when the right investment opportunity presents itself.

The returns on your real estate investments could yield as much as 20% annually over the next seven to ten years. With that kind of potential, what are you waiting for?

To learn more about the advantages of using a Self Directed IRA LLC to purchase real estate, please call an IRA Expert at 800-472-0646 or visit

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