Ways To Fund Your Investments Now

What options are on the table for funding your investments this year?

There is more than one way to fund your investing or investment business right now. Make sure you know your options and take advantage of them.

Self-Directed IRAs & 401ks

These are some of the best tax saving and investment tools available to individual investors. If you are not using them, then you are either grossly overpaying in taxes, are not safely diversified enough in your portfolio, or both. Your spouse and children can also qualify for these accounts, greatly compounding the tax saving and returns available.

1031 Exchanges

Many real estate markets seem to have hit new peak highs over the past year. This is leading many to make the savvy move of using 1031 exchanges to exit mature assets, without tax penalties on their gains, and to roll over into better priced, better value assets with more room for growth.

PPP Loans

You may not want or need a hand out. You may not even agree with all of these stimulus bills. Yet, you will invariably pay these debts back in some form of taxes. The last round of funding left plenty of this money on the table unused. You might as well take advantage of the free money if you have a real estate or investment business. Just be sure you know the rules for loan forgiveness and stick to them. This money can be used to cover the performance of any existing assets so that you can continue to expand while the market is ripe for it.

Lines Of Credit

Low rate lines of credit provide great access to flexible working capital. These funds can be used to invest in new debt and real estate assets, cover down payment gaps left by other types of financing, and pay for emergency expenses or renovations.

Mortgages

Mortgages have been notoriously inefficient and an unpleasant process over the past 13 years. However, there are new asset based and private money lenders who specifically design their loan products and process for investors. They can provide large chunks of capital for new acquisitions, and even access pent up equity.

Raise Equity To Create Your Own Fund

Why not create your own fund to invest with? You certainly don’t have to just play with your own personal savings from earned income.

Financial Arbitrage

This is an amazing market with an incredible spread between low rates for borrowing and raising, and the potential for far higher gains if you have connections and access to the right pools of assets.