Irvine CA- Blue-sky Management Corp, a private property management and commercial real estate investment firm, has launched Self Directed IRA Corp. Self Directed IRA Corp is a provider of direct debt and equity commercial real estate investments for IRA and non IRA/traditional investors. Self Directed IRA Corp was launched in response to a demand for higher, more stable returns by IRA and 401k investors. The company helps investors find alternative sources of income to increase their IRA, SEP, or Pension account values through careful and thoughtful investing in well positioned real estate.
Self Directed IRA Corp specializes in direct debt and equity investments in already reduced and bargain commercial real estate market. On the direct debt investments, investors act as a new Lender on low loan-to-value, well located properties; allowing IRA investors to replace their low yielding money market and bond returns in the public markets with higher returns found in placing First TD investments at 10-12%.
This finally allows investors a safe, stable investment vehicle outside of the public markets. For equity investments, properties are sought out where value can be added through experienced management and leasing.
Self Directed IRA Corp answers the concern among investors that feel the stock market may not be stable enough to support their retirement goals. Although Self Directed IRA Corp also seeks out under valued commercial real estate to own, it sees growing popularity of it private first trust deed lending where the IRA Investor can step in and be the bank and receive much higher returns than seen elsewhere.
The banks and Wall Street firms have left a tremendous void in the market place which can be picked up by the private investor. Self Directed IRA Corp as a Self-Directed Provider offers the expertise in finding the opportunities.
“We do this by originating first trust deeds on already under valued commercial real estate”, says Michael Austin, 25 year commercial real estate veteran and the President of Self Directed IRA Corp. “These are low risk, low loan to value (LTV) transactions that offer security since the investor is directly on the deed itself, and the borrower with whom the loan is made, maintains a handsome equity position thereby reducing the risk of default. Few investments compare when measuring the risk/ return formula.”
While it is easy to move IRA funds out of the public markets, its just now catching on with IRA investors becoming disenchanted with depressed values on their accounts during the last economic downturn. Many do not want to experience this again. Jason Mandrel, the team’s analyst and a Senior VP with the firm, says “The growth in this industry is phenomenal and exciting. With our real estate experience and contacts, we see valuable deals that very few others see, and almost none can offer the services and expertise provided by our firm.”
The funds in an IRA, pension and 401k can easily be moved depending on the current structure of the investors’ accounts. Many times the investor just needs to move it to a custodian that specializing in Self Directed IRAs, then the investor simply ‘”self directs” the funds now under his or her control. There are limitations such as certain self dealing, but Self Directed IRA Corp provides professional management eliminating the potential for prohibited transactions defined by the IRS.
Traditional investors can also take advantage of some the transactions that Self Directed IRA Corp is reviewing. Through years of networking in the commercial real estate sector, Austin feels the time is now to land opportunistic acquisitions being sold by the likes of the FDIC and banks. The firm seeks out low risk, valued oriented real estate that it can pass along to investors while offering all the expertise and management.
One of the biggest problems today is valuing and underwriting the investment decision. Mandrel states, “One of the ways we do this is through experience and overly conservative underwriting. We maintain an additional cushion by seeking out already reduced values and we focus in “A” location real estate.”
Studies and publications have suggested that all Americans should have approximately 25% of their retirement savings in real estate to increase their projected return and decrease their projected risk. That would correspond to a huge growth of over 1,000% over the current 2% level of $4.6 trillion in IRA assets. It is estimated that IRA assets will grow by as much as 500 million per year beginning in 2008 with the retirement of baby boomers.
The stability of a real estate first TD investment and it’s virtually guaranteed returns is an attractive investment in a sluggish economy over traditional stock and securities investments. Investors are becoming extremely more interested in investment vehicles that are not vulnerable to the ups and downs of the stock market.