I have heard more than just rumors that Lenders with REO's are very closely looking at how Realtors use video to promote their properties.   Clearly the 85% demand number is going to move our industry.  In fact I know of a growing Brokerage here in San Diego, that is offering video support to the right, hard working, agents as an inducement to join their firm.

This week I am going to be a webinar guest for Woman in Diversified Services.  If anyone has any comments about video and REO use, I would love to hear them before the webinar.

I am excited to hear about the referrals.  The only thing I miss about working with a franchise is the opportunity to use their referral system.  (I am an independent broker now)  I have tried paying for referrals in the past and have not been successful.  So thank you REO PRO for taking on a referral system that is based on no up front fees!

There are still a number of foreclosures in Tucson. The foreclosing market seems to be heating up a bit. I just listed 4 more foreclosure properties. You can view them all at the link below. Call me with any questions you may have. Thank you.

http://www.lexiclark.com/search/city-182/styp-Foreclosed/disp-LIST

It looks as if times are desperate for all trying to nickel and dime us, now its Equator. I typically paid about $65 dollars a month for ZIP codes today I woke up to $511 a month for the same Zip codes. As you can imagine I was not the only one caught by surprise. Contacting support at 9:13AM eastern time I'm still in line for support number 138, 2 hours later. So check your equator bill this morning.

At some point when i started getting REO's in 2006 i was told by Spring of 2009 it would be all over. Boy they were wrong in 2009 i sold 189 REO's but something was different then. REO's were being traded from one asset company to another and i was sent along the ride with the new companies selling an average of 150 a year till 2014. Now in 2015 the REO's are just drying up with no new asset manager on the block and nobody even making claims that we have a shadow inventory coming sometime soon. So is it finally over? 

Items that Repel Home Buyers

The seller’s market that was so prevalent a few short years ago seems to have shifted in favor of the home buyer. Thanks to an overall improvement in the economy and home prices that have risen by 10% or more for the past year, buyers are becoming a bit more selective about their purchase. Here are some items that scare buyers off and what you can do to fix it.

Foul Smells

Certain buyers may like fried food or indoor pets, but most people are turned off by unpleasant odors. This is especially true when the odor is noticeable when a person first walks in to the home.

Odors come in all shapes and forms. Various kinds of food, pets, and tobacco can leave behind distinctive smells. It is important to deep clean the home, the carpets and even the ventilation ducts to get rid of the odors.

Paper on the Walls

For 40 to 50 years wallpaper was quite the rage. Unfortunately, those days are gone. Since most people pick out a very particular wallpaper to go along with certain furniture and trim it is highly unlikely that the next person to buy the home will have the exact same taste. It is better to remove or cover up the paper with paint that is in a neutral tone. Wall paper on one accent wall can be a neat feature however. Using paint and stencils might be the best choice because it would be easy to paint over if it is not to the taste of the buyer.

Dirt

Many sellers fail to realize how important it is to have the home looking as clean as a brand new home. Most buyers do not look past what they initially see in order to understand the potential value of a place. They simply want to walk through and imagine their furniture, heirlooms and personal belongings in various spots in the home. That is tough to do when the sink is full of dirty dishes; the living room is a mess and all the floors need cleaning. Go through every room and thoroughly clean everything.

Sellers Standing Around

The vast majority of buyers prefer to look at a home without the seller present. When a seller is in the home during a showing it presents a bit of awkwardness for the real estate agent and makes the buyer feel pressure. This is easy to remedy: do not be present when the agent shows your home.

Old Items

If the home looks like you stepped back in time 20, or 30 or more years then it will be tough to sell. Old plumbing fixtures and doorknobs that have lost their usefulness scream out “lack of maintenance” and it will make potential buyers wonder if other things in the home are in need of major repair.

Less than the Truth

Thanks to modern technology it is easy to put together a large number of digital pictures and even a video of a home. These items, along with descriptions, need to be as accurate as possible. Putting up a description that omits the fact that a home is mere feet away from a train track or a picture that misleads about the size of a room can turn off not only buyers but agents as well.

Every small business owner requires a retirement strategy. Do you own a small business? Probably the idea of retirement planning isn’t as enticing as opening another store for your business. According to a survey conducted in 2014, nearly one-third of the small business owners didn’t want to retire whereas a quarter had no plans for retirement. More than one-third said that they would divide their retirement equally between work and leisure. Does that sound like your plans?

Here are two factors that you must consider:

• You don’t have an employer to set up a retirement plan for you.
• You are not likely to receive any kind of pension during retirement.

Investing in a retirement plan allows you to choose whatever path you want with more confidence.

Solo 401k: A Perfect Match for Small Business Owners

Solo 401k is a retirement plan that allows self-employed individuals and small business owners, without full-time employees, to save money for their retirement. It is important to understand that you qualify for Solo 401k plan even if you are working with your spouse.

What makes solo 401k Special?

• High Contribution Limits: Solo 401k has higher contribution limits than IRA accounts allowing you to contribute up to $53,000 in 2015 (additional $6,000 catch up contributions for individuals above 50 years of age).
• Flexible Investment Options: The flexibility to diversify your investments is the primary advantage of Solo 401k plan. You can invest in real estate, private business, precious metals, and other traditional investment options. In case you have a Roth option, all your investments will grow tax-free.
• Roth Contributions: Traditional Roth IRAs do not allow contributions for individuals that make more money than a certain limit. The Solo 401k retirement plan offers freedom to pay your taxes upfront, regardless of your income. You can contribute up to $18,000 in Roth contributions for 2015 and an additional $6,000 in catch up contributions for professionals above 50 years of age.
• Solo 401k Loan Access: The last US recession (Dec 2007 to June 2009) had a huge impact over small business owners and all the major banks scrutinized their loan access. Solo 401k is here to the rescue. It offers borrowing from retirement plan and you can borrow up to 50% of your retirement fund (maximum limit of $50,000) during financial distress. Solo 401k loan is available at prime rate plus one percent interest rate, which makes it extremely affordable.

On top of everything else, you are free to direct your investments without any intermediary. There is no need to file a return until your account balance crosses $250,000 in value. Solo 401k is a complete retirement solution for small business owners. 

I just received an email request for an exterior BPO due in less than two days (about 42 hours) for $42. I generally just delete these because the fee is too low for me but it just so happens I had an accepted order within a few blocks for another client (for $70, not a rush order). I thought I'd log into their system and reject for fee and see if I could get them to bump it up a little before I drive for photos tomorrow morning. I took a couple minutes to see if the property was listed, had any MLS history or if subject data was available in the tax records (it's not for many properties in our area).

By the time I logged in a couple minutes after receiving the email the order was already gone. No big surprise and no big loss. The thing is I recently did a drive by for this company, for $125. They offered me $200 for another but I turned it down because it would have been about a 90 minute drive each way and I didn't know the area very well. The one I did for $125 was a mile from my house and was really a pretty easy one. I guess whoever does them for $42 wasn't available.

I often get these email orders for exteriors for $40, $35 or even $30. I almost always just delete the email. Sometimes when I am not to busy I'll log in and reject for fee and ask for more. More often than not the order has already been accepted. Once in a while I'll get an approval on the increased fee.

I have multiple clients the regularly pay $65-75 for a standard drive by, and more for a rush or anything that might be farther than I'll normally drive or a little more difficult to find comps for. I often get companies that I normally do not accept assignments from offer well above their normal fees when they can't get someone to take these assignments. Sometimes this will be a Friday before a holiday weekend but often it's not. The recent $125 order came in on a Wednesday afternoon. Wasn't even a rush order, due the next Monday.

This got me thinking. I wonder if the agents that are accepting these orders for $42, or $35 or even $30, have any idea that they'll gladly give me $60, $70 or more for the same order when you don't accept them. What would they think if they knew I often get twice as much as they do, just because I ask for it.

I received a notice from a company that Ca state regulations require that all payments be made to the employing broker or brokerage.  They payment is already low.  For many years all payments go directly to me.  My broker does not care but the logistics of writing a check back to me will be difficult to continue on a continuous basis.

I do not have similar issues with other companies. Anyone has that experience?  They now ask for copy of driver's license.

The real estate downturn of the mid-2000s is mostly over and the market is heating up, with prices rising in all over the U.S. In Wisconsin, the real estate market might be even healthier than in other locales, with new and existing home prices expected to rise 2.4 percent by early 2016. It might just be the perfect time to buy, but before you make any offers, you need to do a little planning to make sure you can pay out over the long run, especially if it's your first home.

Get Your Financial Ducks in a Row

Do you have good credit? Do you know what good credit is or the factors that affect your credit? Have you had late payments, bankruptcies, judgments or other liens? If the answer is yes, the first step is to work on your credit score and report. Up until just recently, access to your credit score and full report was granted after putting down credit card info for a "free trial." that you would have to cancel right away to avoid a costly fee. Now, you can access your score and report for free, so there's no excuse for not knowing what's happening with your finances. Your FICO scores are ordered separately, usually for a nominal fee. Check it for discrepancies or old information. Much of the time you can contact the lender directly to resolve these issues. Or, contact the bureau and use their dispute resolution process. Most mortgage loan programs require a 640 score or higher, so fixing errors or having old information removed can make a big difference.

Do You Have Funds?

Do you have money for a down payment or closing costs? If not, how long will it take you to save? Start now. Make a commitment to stash funds away each month to help you meet your goal. Some loan programs are still available for 0% down but watch out for those; if the market should falter again you don’t want to owe more on the home than it’s worth. It also goes without saying that you want to refrain from big purchases that require credit, such as buying a new car, until after the home purchase process is over.

Are You Homeowner Material?

Owning a home is touted as a big factor in achieving the American dream, but it's not for everyone. Ask yourself:

Am I prepared for expenses like home repairs and landscape maintenance? Am I at risk for job relocation? Am I able to stay in one place for three to five years?

Talk to a Lender First, Not a Realtor

Resist the urge to call your realtor first. Instead, speak with a lender or two to find the best program. There are many loan products and even more lending institutions so it's worth shopping around for the lowest rate. A good lender will also advise you on the best ways to protect your credit while you a preparing to buy a house, which might include ID monitoring and credit report monitoring to ensure that someone else isn't using your good credit or your identity while you working on purchasing your home.

Use a mortgage worksheet to keep track of the information you receive from various lenders. It can be a dizzying amount of numbers and differences so keeping them in one place is important. When you are within 60 days of purchasing, your lender will issue a pre-approval letter for the amount you qualify for. Now you can call your Realtor and look for your dream home.

Home Sales and Median Prices Grow Substantially in March

The Wisconsin housing statistics are in for the month of March, 2015. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:

~~~~~
The Wisconsin housing market grew substantially in March, with both home sales and median prices increasing at a robust pace over the past year, according to the most recent analysis of the statewide housing market by the Wisconsin REALTORS® Association (WRA). Home sales increased 16.1 percent in March 2015 over March 2014, and median prices rose 8.8 percent to $149,000 over that same period. For the first quarter of 2015, existing home sales were 6.7 percent ahead of the first three months of 2014, with median prices in the first quarter up 7.6 percent compared to the first quarter last year.

“The market is definitely heating up, and it couldn’t come at a better time as we move into the prime homebuying season,” said Dan Kruse, chairman of WRA board of directors. In a typical year, about 27.1 percent of homes sell in the spring months between March and May. “The economic fundamentals of the housing market have been good for the last several months, and we were expecting solid growth this spring, but double-digit sales growth is impressive,” said Kruse.
~~~~~

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Dane County, and Rock County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. This month both Dane & Rock County's home prices & home sales increased significantly, year over year! If you are thinking of buying or selling, the market is REALLY heating up! Dane County home prices are up (7%)!, while Rock County prices are up (17%)!!!, year over year.

Housing Statistics for the State of Wisconsin:

March 2015
Home Sales: 5,441
Median Home Price: $149,000

March 2014
Home Sales: 4,672
Median Home Price: $137,000

Housing Statistics for Dane County, WI:

March 2015
Home Sales: 601
Median Home Price: $220,000

March 2014
Home Sales: 505
Median Home Price: $205,000

Housing Statistics for Rock County, WI:

March 2015
Home Sales: 188
Median Home Price: $122,500

March 2014
Home Sales: 152
Median Home Price: $103,950

View my report from last month. Wisconsin February 2015 Housing Statistics

Thinking of purchasing a home before prices or rates rise any further? We'd be happy to show you any homes currently listed for sale. Take a look at all available MLS listings below:

With the recent home price increases, now might be the right time to sell your Wisconsin home. Take advantage of your increased equity! Feel free to take a look at our cutting edge Rock Realty Marketing Plan! If you would like some insight into how much your home is currently worth, we would be happy to provide you with a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market.

Sometimes you have to search through the fog to find the best real estate agent you can. Here are seven key points you can look at to make sure you stand the best chance of finding that quality agent to help you sell your home. 

• •Look at Reputation – Ask your potential agent to provide evidence of previous listings sold in the past year with contact information. Find out what the asking prices were and what the final selling price was.
• •Check the licensing – all states will issue real estate agents with a license and it is these licenses which can reveal if there were any complaints or problems with sales in the past year.
• •Go for a winning team – Awards issued by peers are worth taking a look at: if the local or state branch of the NAR has awarded your potential real estate agent with “Realtor of the Year” then it’s worth possibly considering this agent
• •Make sure an agent has the right credentials – just as doctors have specialist fields they study in, real estate agents may specialize in certain products. A doctor may be an expert in glaucoma, chiropractic or cancer but there are real estate agents that specialize in selling (or buying) condos, expensive million dollar-plus homes or luxury tower condo properties.
• •Check the experience of your agent – Finding out how long a real estate agent has been in business is important. There are two places where you can find this information online – one is the agent’s own website and the other is Realtor.com. It should say the year in which the agency was established. Be very wary of those agents that don’t reveal this information.
• •Check out the current listings – This is one sure-fire way of checking that the agent is selling the type of property you are wanting to sell (or buy). If you are selling a small one-bedroom apartment and the agent is listing million dollar plus homes then he or she may not be the agent for you.
• •Check their local Listings – By finding out the local listings, you will get a good feel of the homes the agent is selling in your district. If there are no local listings, you may have the wrong agent for you.

On a personal not, I have always found that just as important as the list above, is the potential agents personalities, professionalism and upfront honesty...even if it’s not something you want to hear. So don’t forget to see if you “click” with your new agent.

www.pamsvas.com - Real Estate REO and BPO Virtual Assistants

I just received in the mail an acceptance letter from NRBA saying my application was approved and that all they needed was my annual payment. The funny thing is is that I did not apply to be a member. I would appreciate anyone giving me their honest opinion about this group!!!

“Destiny is no matter of chance. It is a matter of choice. It is not a thing to be waited for, it is a thing to be achieved.”

William Jennings Bryan

Being a self-employed, every professional holds his destiny in his hands. Taking control of your life is the first step towards achieving success and retirement is an extremely important part of life. How do you achieve maximum benefits with your retirement plan?

Step I: Asking the right questions

Step II: Look out for best options

Step III: Analyze them and start investing your money

Top 5 Questions You Should Ask Your Financial Planner

• What are the plans that offer maximum contributions? Solo 401k and SEP IRA are the two self-employed retirement plans with maximum contribution limits of $52,000 for 2014 and $53,000 for 2015. Solo 401k allows catch up contributions for individuals above 50 years of age whereas SEP IRA doesn’t. In short, professionals above 50 years of age can add additional $5,500 for 2014 and $6,000 for 2015 in a solo 401k plan.
• Does it offer traditional investment options? Solo 401k retirement plans offer multiple investment options including real estate, tax liens, private business, precious metals, and regular stock and mutual fund investments.
• What is the deadline for Solo 401k contributions?  One can make both employer and salary deferral contributions up to April 15, 2015 for the financial year of 2014 and April 16, 2016 for the financial year of 2015. One can even file an extension for contributions up to October 15 of subsequent year depending on the type of business that sponsors the plan.
• Can a retirement plan offer financial support during off-season? For every business owner, surviving through an off-season is the toughest challenge and it takes every single dollar to push the company further. Solo 401k retirement plans are designed to accommodate any such financial urgency. One can borrow up to 50% of fund value up to a maximum limit of $50,000. This loan is available at Prime Rate plus 1 percent, which makes it an affordable source of funding.
• Are there any downsides of Solo 401k retirement plan? The only downside of solo 401k retirement plan is that one has to file returns if the fund value exceeds $250,000. However, even then, plan holder only needs to file a quick and simple form. At the same time, Solo 401k is only suitable for small businesses with no full-time employees (employees who do not qualify for retirement plans).

It is important to understand that investment options differ from one institution to another and it is extremely important to choose a flexible plan provider for Solo 401k retirement plans. 

If you are selling a home, your real estate agent may often tell you the something like – “we have to sell it fast, it’s in your best interests”, “get rid of this chapter of your life and start anew”. “make sure you clean your home thoroughly and give it a fresh coat of paint on the inside and out, and watch it sell like a hot cake.”

Real estate agents often recommend that you make use of a professional home stager, a person who will evaluate your home and tell you what it takes to make it appealing to potential buyers.

A recent survey has found that more than 50% of agents who work with buyers say that staging has an effect on the buyer's view of the home. It does tell us that staging is one sure-fire method to get buyers interested in at least looking at your home.

There is little doubt that decorating a home before putting it out there on the market, really does attract more buyers. Especially if the home is vacant or out dated. So the million dollar question has to be: “what if I have decorated my home but not necessarily in a way that will please a potential buyer?”

A bad paint job is as bad as not bothering to clean or decorate your home at all. If you really want to make that sale then you should be looking at spending a bit of money. Depending on the size of your home, If you look at a home staging budget of say around $700, spent wisely, then you may very well get an extra few thousand in sales price.

If you have a larger home – say a house with 5 bedrooms and 4 bathrooms, then expect that home staging budget to be higher but you can also expect a much higher return on the sale of your property when it closes and more immediate interest when it hits the market. The fact is you should be able to recoup costs associated with the decorating and paint work you do around the home, and most times, even more.

So make sure you at least consider your Realtor’s recommendation of home staging. It may shorten your time on the market and put more money in your pocket at closing.

PamsVAS.com - Real Estate Virtual Assistants

In December 2014, national cash sales on single family homes made up for about 35% of the total of all home sales. WOW!!  However, if we turn the clock back a year we find the cash sales in December 2013 made up 38.5% of the share; so why is this figure falling and should we be worried by it? Now, I’m not saying that this # is the best gage of the real estate market, but we definitely should watch it. 

The percentage of cash sales on homes has been declining steadily since January 2013 and every month that follows the figure goes down a little more. Now, December 2014 was the 24^th month on the bounce where cash sales – as a percentage of all home sales – were down. 

Usually the drop each month would only be around half a percentage point but because there are seasonal variations, the figures should be taken as a year-on-year representation rather than a month by month one. If you are a real estate agent, you definitely understand that.

So, why are we still seeing a decline in the amount of cash sales. Turn the clock back just a little to January 2011 and you’d be amazed to learn that cash sales made up 46.5% of all home sales. 

It has to be a strong possibility that mortgage lenders were tightening up and not loaning out to any Tom, Dick or Harry and that if you wanted to buy a home, you had to pay up, especially if you were a foreign buyer. 

If we turn the clock back even further to the days before the housing crisis started, you will see cash sale figures of just 25%! Astonishingly low, but consider that these were the days when mortgage lenders were falling all over one another to lend money for home purchases. After the housing crisis hit in 2008, lenders were ordered and compelled to tighten up mortgage lending, leaving the majority of those home buyers post-housing crisis to stump up the cash, rather than getting a mortgage. 

We are expecting the levels we saw in 2006 (approximately 25% cash sales of all home sales) to return again once more. We are not saying that irresponsible lending is likely to make any sort of quick return, (although look at Freddie Mac’s latest announcement of 3% downpayment loans back again), but we can expect the cash sales figures to dip back to somewhere around 25% over the next year or 2.

pamsvas.com - Real Estate REO Virtual Assistants

Home Sales and Median Prices Grow in February

The Wisconsin housing statistics are in for the month of February, 2015. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:

~~~~~
The Wisconsin housing market showed signs of modest improvement in existing home sales in February even as median prices continued to grow at a robust pace, according to an analysis of the statewide housing market by the Wisconsin REALTORS® Association (WRA). Home sales in February 2015 grew 1.8 percent compared to February 2014, and median prices increased 6.1 percent to $137,900 over that same period.

“We know the months between December and February are traditionally low-volume months for home sales in Wisconsin, so it’s good to see some improvement over last year,” said Dan Kruse, chairman of WRA board of directors. Comparing December 2014 through February 2015 with that same period in the previous year, winter sales are up about 1.2 percent. “While the state is moving in the right direction, it’s important to remember that sales last year were hampered by very cold temperatures, and so this is really only a slight improvement,” said Kruse.
~~~~~

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Dane County, and Rock County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. This month both Dane & Rock County's home prices increased significantly, year over year, yet again! Dane County still showed an increase of total number of home sold, while Rock County was down slightly, year over year.

Housing Statistics for the State of Wisconsin:

February 2015
Home Sales: 3,482
Median Home Price: $137,900

February 2014
Home Sales: 3,419
Median Home Price: $130,000

Housing Statistics for Dane County, WI:

February 2015
Home Sales: 355
Median Home Price: $215,000

February 2014
Home Sales: 341
Median Home Price: $195,000

Housing Statistics for Rock County, WI:

February 2015
Home Sales: 92
Median Home Price: $111,500

February 2014
Home Sales: 110
Median Home Price: $97,750

View my report from last month. Wisconsin January 2015 Housing Statistics

Thinking of purchasing a home before prices or rates rise any further? We'd be happy to show you any homes currently listed for sale. Take a look at all available MLS listings below:

With the recent home price increases, now might be the right time to sell your Wisconsin home. Take advantage of your increased equity! Feel free to take a look at our cutting edge Rock Realty Marketing Plan! If you would like some insight into how much your home is currently worth, we would be happy to provide you with a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market.

Moving out of a huge house and into a property that is considerably smaller is taking off in the U.S. (as well as in many other countries) in an ever-increasing way. So why do people do it? The average floor space of the typical American home is approximately 2600 square feet, but compare that to a tiny house where the floor space can measure just 100 square feet and no more than 400 square feet, and suddenly you really are looking at a huge downsizing operation.

Put simply, the Tiny House Movement is a social networking group whose aim is to downsize the area they are living in and then broadcast their experiences in the transformation. Advantages include lower mortgage payments, less cleaning and maintenance, lower utility bills, lower taxes, environmentally friendly and simplified living.

So what is the main reason why so many people are flocking to join this new revolution in downsizing the amount of living space in their new homes? The main reason is definitely financial and the effect of the 2007 Housing Crisis still has a huge impact on the way we are all managing our money now.

Indeed, the real estate down turn has changed the way most people live – which is hardly surprising when you consider that an average of around 50% of the income a person earns, is set aside for that roof over our head. Downsizing, even just a little, can reduce the portion of income dedicated to housing to as little as 30 per cent, thus freeing up some 20 per cent of our salary to spend on other luxury items or necessities.

Just calculate how much 20% of your take home pay is and think what you could do with that money: take an exotic vacation overseas, buy a new car, pay for your child’s university fees or just invest in a small swimming pool to go in your much smaller back yard. It’s a shocking statistic that some 76% of all Americans are living from one pay check to the next.

Another appealing statistic is that 55% of all tiny house dwelling people have more money in their saving accounts than the average American has (average savings is currently $10,800), so you can really bank on having more disposal income than the people trying to get by in their huge homes.

A Tiny House may not be for you and your family, but many people are learning to adapt, especially with all the advantages of a Tiny House.

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

Franklin D. Roosevelt

Franklin D. Roosevelt was able to sum together the entire thought process of real estate investors and agents in a single sentence. Real estate business is back on its track after the last recession and property prices are faring well throughout the United States.

As a real estate agent, it is quite common to ignore retirement planning and most of the agents do not have a solid retirement plan in place. In some cases, it could be lack of awareness and in others, overestimation of one’s ability to work. However, if you are to find a retirement plan that can help you in capital funding during a period of financial drought, isn’t that wonderful?

Solo 401k is a retirement plan for self-employed individuals and real estate agents can benefit a lot from it. It has comparatively higher contribution limits and one can contribute up to $53,000 in 2015 (excluding catch up contributions).

“The best time to plant a tree was 20 years ago. The second best time is now.”

Chinese Proverb

Top 3 Benefits of Solo 401k

• Higher contribution limits: $53,000 for 2015 (excluding catch up contributions)
• Flexible investment options: Real estate, private business, precious metals, tax liens, traditional stock and mutual funds
• Loan Option: Borrow up to $50,000 or 50% of fund savings

For real estate agents Loan option is one of the biggest benefits.

Solo 401k Loan Option

• Who can borrow: Every Solo 401k plan participant can borrow up to 50% of fund savings to a maximum limit of $50,000. If you have $100,000 in your solo 401k, you can borrow $50,000. However, if you have $30,000 in your solo 401k, you would be able to borrow up to $15,000 only.
• Interest rate for loan: In most of the cases, it is prime rate (3.25%) or primate rate plus 1% interest.
• Frequency of repayments: A solo 401k loan is repaid on a monthly or quarterly basis with at least one payment per quarter.
• No credit qualifications: You do not have to fulfill any credit qualifications unlike regular bank loans. For realtors, it can be difficult to get a credit during a financial drought and solo 401k loans can help them get necessary funding.
• No tax penalties: Unlike regular retirement plan, you do not have to deal with a tax penalty on borrowing from your Solo 401k until all repayments are made on time.
• Interest paid back to the account: The best part of solo 401k loan option is its low interest rate. Plus, instead of paying interest to another lender, your interest payment will be paid directly into your Solo 401k. Essentially, you are borrowing from yourself, and paying interest to yourself.

Real estate transactions involve different types of fees and Solo 401k loan option can help you handle those. For an instance, you might need money to cover legal costs or research work in the transaction. At the same time, it can help you grab crucial real estate opportunities and offer financial support.