Real estate investing can be one strategy to use to boost your 401K or other retirement plans you may have now or will be pursuing in the near future. Odds are you are one of the many who stood by in horror as the stock market lost half its value, turning your 401K and/or other retirement plans into dinner & a movie. Frantic to identify a safer alternative to "right the ship"? Well lo & behold a viable option has been uncovered. A magic pill with the secret ingredient that will help you replenish your depleted portfolio & ensure your retirement days will not be spent as a greeter at the local Wal-Mart. Okay, so you got me; there is no magic pill, potion, lotion, or secret sauce that will get you back on the course to financial health.
There are however, techniques that can be used to re-capitalize your retirement plan using the current Real Estate market as your vehicle. Two primary methods are being utilized currently to breathe life into thousands of retirement plans & lives. The first is to purchase real estate outright. The second is to lend money secured by real estate for a generous & consistent return on the loan.
For lack of a better term, Method 1 equates to "Hands On" investing, typically reserved for investors who buy, rehab, rent & sell properties acquired by using retirement plan funds. One caveat to keep in mind here is; unless you care to commit to locating, managing, selling, or managing a team to do it for you; you may be better suited to Method 2.
Method 2, aka "Turnkey", is certainly a more proactive approach to investing. In its simplest form you the investor will lend money that is secured by real estate with the Assistance of a 3rd party custodian. You will then align yourself with a professional real estate investor or company who will handle the acquisition, management, sale of properties for short term gains or hold the assets for long term passive income or a combination of both. You as the investor are able to enjoy a generous return that in most cases is in multiples of CD rates & other retirement plans which are currently volatile at best.
You will find that each method has unique advantages & disadvantages & finding your match will require diligence & your complete understanding of the entire process associated with real estate investing. There is risk in any investment strategy, but throughout history real estate has and shall continue to be the primary investment vehicle for the world's wealthiest individuals. You do not have to be wealthy to invest like them. Should you decide to do so, you should follow their "road map": Assemble a power team to research, analyze, formulate a strategy, joint venture with, and of course, CAPITALIZE on a down market.