Business Development Tips for Realtors: Learn How to Earn Self-Directed IRA Buyers! by Erika Napoletano
As a real estate professional, you know first-hand the impact of the economy and the foreclosure crisis. But you're able to see the silver lining in the clouds - you know it's a great time to buy! But how do you reach the buyers who understand...and possess the liquidity/ability to purchase?
It's simple. You need to seek out self-directed IRA real estate investors.
Self-directed IRA investors are those buyers who are using funds from their retirement accounts to invest in real estate and other non-traditional assets. These buyers are generally savvier real estate investors who understand the value of leveraging their retirement funds to invest in an asset class they know and trust. In addition to seeking out these buyers, you'll position yourself above other professionals in your area by bringing this valuable financing source to your existing clients. The following are some steps you can take to build your business through the self-directed IRA market:
1. Learn about self-directed and real estate IRAs. You can read this comprehensive 7-part article series on self-directed IRA basics and a list of custodians. The more educated you are about the fundamentals of these purchasing vehicles, the more able you'll be to speak with your clients about the option.
2. Contact local self-directed IRA custodians and research the potential for co-sponsoring webinars and seminars for their clients on buying real estate in their IRA.
3. Research non-recourse lenders. These are lenders that specialize in financing for self-directed IRA buyers so they don't have to use 100% of their available liquidity to execute a purchase. Your self-directed IRA custodians should be able to give you a list of lenders they work with on a regular basis.
4. Understand fully what self-directed IRA custodians are currently requiring for their account holders to execute a purchase with their IRA funds. Loan-to-value (LTV) often varies and documentation requirements vary from custodian to custodian. Being up-to-speed on these criteria will help you make your buyer's experience as seamless as possible.
5. Establish a section on your website targeting investor buyers and offer links to self-directed IRA resources and features listings that fit a self-directed IRA buyer's needs.