How to Take Advantage of Your Self-Directed Individual Retirement Account

I recently had the chance to meet with some old colleagues and friends of mine. During our
get-together, I was asked what I do with my individual retirement account (IRA) money.
I shared with them what I do.

I took my IRA money out and, combined with my wife’s IRA, we now have a self-directed

IRA. We've turned this into a checkbook controlled self-directed IRA LLC, and with our IRAs,
we are the owners and managers of the LLC. We’ve been using this fund since 2007 and
invested in a rental while most of the money goes toward flipping homes.

By using our own IRA money for the last 10 years, we’ve been able to grow our nest egg

by 300%. We just filed our tax returns and we can see the assets between 2007 and
2017, which showed about a 30% increase each year. My friends were definitely excited
after hearing what we were able to turn our IRAs into.

If you’re looking to leverage your IRA into a good income, I’d love to speak with you and go over your options. We can talk about getting a return by investing some of your retirement money. I look forward to hearing from you.

Does the Election Affect the Southern California Market?

How does the election impact the real estate market? I ran some numbers to figure out exactly how the election affects our area.

What’s in store for the real estate market during this election? I ran the numbers and compared September 1st to October 15th in 2015 to the same time period this year to measure what (if any) impact the election has had on the Southern California market. 

In 2015, 2,570 units sold between the 1st of September and the 15th of October. This year, only 2,483 units sold, so there was a slight drop in sales, 3.4% drop in the number of units sold. However, homes are also selling faster this year than they did last year. In 2015, the average days on market was 58, and this year, it’s 57. 

Not only are homes selling faster this year, they are also selling for more money. The average price in September of 2015 was $559,000; this year, the average price is $589,000, which is a 5.4% increase in home value The good news for buyers is that interest rates have dropped from 4% to 3.5%. 

So, regardless of what has been happening in the European, Japanese, or Chinese economies, the U.S. real estate market has continued on. This negative election cycle has not negatively affected our market. Trends in the real estate market still follow the basic economic principle of supply and demand. 

The real estate market relies on supply and demand, not politics.

The reason there was a drop in units sold year over year is that we have lower inventory this year than we did in 2015. Prices have increased by 5.4%, which is a hefty increase, so now is a great time to put your home on the market. Now is also a great time to buy a home and take advantage of those low, 3.5% interest rates. 

If you have any questions about buying or selling a home in our current market, just give me a call or send me an email. I would be happy to help you!

Boomerang Buyers in Southern California

Today, our preferred lender, Dave, is here to discuss the latest buzz in the market: boomerang buyers. Boomerang buyers previously went through a short sale, bankruptcy, or foreclosures, and are now eligible to come back into the market.

Loan programs improved in the last couple of years. Plus, the market became stronger and healed. A lot of those buyers don't know they can come back into the market because of programs offered by the lending community.

Many clients think that the seizing on a short sale is forever. However, you can get back in the market in as little as three years through FHA or two years with Fannie Mae. There is also an FHA back to work program that allows people with major credit challenges to get into the market in one year.

Additionally, there are several great grant programs available to boomerang buyers. This is free money that you can use for a down payment or closing costs! A lot of people may be able to qualify, so talk to a professional to see which program works best for you.

You don't have to be a first-time home buyer to qualify for these down payment assistant programs. With grant programs, you don't even have to pay the money back.

Keep in mind income guidelines are extremely aggressive with grants. For instance, in Orange County, it's about $98,000. In LA County, it's $80,000.

Ultimately, these opportunities are great for people looking to enter the market. If you have any questions for Dave or myself, give us a call or send us an email. We look forward to hearing from you!

 Buying a SoCal Home? Search all Homes for Sale
Selling a SoCal Home? Check out our FREE Home Value Report  

Accessing my Secret List of Homes From 6 Different Avenues

There are many great San Gabriel Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (626) 643-7090 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I will be talking about my secret list of homes in the Covina and Los Angeles areas and how you can access it. You might be skeptical at hearing this, but trust me, this list does exist. I have found these properties from 6 different areas.

1. Shadow Properties: These are foreclosed homes that have not been released to the market by the bank.
2. Flipped Properties: I have access to the 'fix and flip' homes that investors buy and then repair. The investor will give me a price, and then I can contact you to form an offer.
3. Expired Listing / For Sale by Owner Follow-Up: I follow up on properties like these and can help you gain access to them by calling the bank and/or the owner of the property.
4. Home Valuations from my website: When home owners us the home valuation tool on my website, I then know about their property that they might be trying to sell. These homes are not listed, but I am able to contact the owners.
5. Access to Probate Attorney: When people pass away, their estates must be settled, and I have contacts in this industry that I can communicate with to find you a property.
6. Access to Divorce Attorney: Much like #5, I have contacts with attorneys who can alert me to potential homes as a result of a divorce. 

Most real estate agents do not have the connections that I do, so contact me if you are having trouble locating a good property in the Los Angeles or Covina areas. I can find a hidden gem for you among these 6 different avenues. If you need assistance please call me at (626) 643-7090 or email me at reoagent@shawnluong.com

What MBA Classes Won't Teach You - Lessons from My Personal Investment Story

There are many great San Gabriel Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (626) 643-7090 for a FREE home buying or selling consultation to answer any of your real estate questions.

A long time ago I had my first experience in investment. It wasn't the most sophisticated nor the most thrilling endeavor, but it allowed me to learn volumes about how investments work in the real world.

I happened upon an acquaintance who said that they could fetch me a 36% return on a $1,000 investment. The plan was to buy 100 boxes of shrimp (wholesale) in downtown San Pedro and Los Angeles for $10 each. The shrimp would then be distributed at a grocery store in Fresno, CA, where the shrimp sold for $18 per box.

Each week we netted $1,800, $360 of which were given back to me. This was a very simple investment that I made, but it began a path that led to where I am now. No MBA classes could have taught me what I learned in those few weeks.

I learned quickly that returns are relative, and that cash flow is king. This has been my guiding principle ever since. If you are currently looking to invest in rental properties, then please contact me and I would be glad to help you in your venture.

You can contact me at (626) 643-7090 or email me at reoagent@shawnluong.com

Thanks for watching, and I'll be back soon with more real-estate information for you.