You can take advantage of the new home construction market by building your own property from the ground up or teaming with others to invest in several properties. Land values have bottomed out and in many places it makes sense to build new investment homes instead of existing ones toira investing new construction either flip or hold.

Either way, for a short term profit or holding for a rental, you’ll need likely need to finance the project with a construction loan. Yet at the end of the construction, the temporary note must be replaced by a permanent mortgage. Do you have an IRA? Did you know that investment real estate can be financed in part or whole using a self-directed IRA?

Most IRA funds today are given five stars if they’ve returned something along the lines of 8.00 percent per year. And compared to traditional investments, that’s not bad at all. The problem with that strategy is you have to be the lucky investor smart or lucky enough to have picked the best investments to place your IRA funds into. But you can also use those funds for real estate investments and turn a much greater profit all secured by real estate and not dependent upon the quarterly performance numbers of a selection of publicly traded companies.

Funds from the IRA may be used as a down payment or even to finance the entire transaction. Once the property is sold, you can place the original amount plus your profits tax free right back into the fund. The IRA fund must be a self-directed fund, one where you control where the investments are made. This can be an IRA you’ve funded for years or it can be a 401(k) rollover from a previous employer.

If you’ve never tapped your IRA for real estate investments, it’s something to consider, especially if the best you’ve been doing is 5.00 to 8.00 percent returns.