Seminar on June 28th: “Finding a Way with Your IRA”

Planning retirement in the next five years?  Looking to eventually downsize to a condo in the city?

If you answered “yes” to either of the above questions then you shouldn’t miss this free informative event on leveraging your IRA (Individual Retirement Account) by investing in today’s opportunistic real estate market, while also securing your future.

Did You Know?

• Your self-directed IRA can buy income property with before-tax dollars – rent it out and move into it when you retire
• Demand for rental housing in the city is skyrocketing – experts expect 25-30% increases in rent over the next five years
• The condo supply pipeline has been pinched, resulting in a dearth of new inventory until at least 2015 – the best selection and values are available now
• You can obtain financing on your IRA purchase securing today’s unprecedented low rates for the future while building positive cash flow in the interim

Presented by Realogics Sotheby’s International Realty, a panel of experts has been assembled to explore myths and facts with using IRA’s for income property, to discuss available financing options, and the review the overall housing marketing in downtown Seattle.

Here’s the details:

Finding a Way with Your IRA” – Investing in Today’s Condo Market for Tomorrow’s Retirement

Tuesday, June 28th, 2011 from 6:00pm – 8:30pm

The Hyatt at Olive 8 – 1635 8th Avenue – Downtown Seattle

Keynote Speaker – Tom Kelly, Syndicated Real Estate Columnist & Author

Self Directed IRA’s – David Nilssen, Guidant Financial

IRA Financing – Larry Enselman, Pacific Crest Savings Bank

Market Watch – Dean Jones, Realogics Sotheby’s International Realty

Admission is free

“We recognize there’s a growing opportunity for pre‐retirees to take advantage of today’s real estate opportunities by purchasing condominiums, renting them out with positive cash flow and then either holding them as an income property in their IRA or redeeming that asset as either a principal residence or second home in the future,” said Dean Jones, Principal of Realogics Sotheby’s International Realty. “The stars may be aligned downtown. We’re bringing in leading opinions to explore this investment strategy and welcome interested consumers and real estate brokers to view the interactive presentation and join the panel discussion.”

RSVP to 206.448.5752 or send an email to RSVP@RealogicsSothebysRealty.com

See you there!

1 Hotel & Residences Reduces Number of Investment Opportunities

Only a small fraction of 1 Hotel & Residences have sold, and the project has been delayed again.  However, even though the Seattle market hasn’t expressed acceptance of the hotel/condo concept as hoped, the developer still remains positive the project will be built with some consideration that 100% of the retail space has already been filled.  The major problem doesn’t appear to be lack of interest in owning a hotel room, but the nationwide credit crunch condo-hotel projects are seeing from lenders.  Therefore, plans are being redesigned to be more appealing to lenders.

If you have been considering 1 Hotel & Residence as an investment, we’re not sure all this hype is reason enough to look away from it. But, here are a few pros or cons to help differentiate between owning a hotel/condo versus owning a condo as a 2nd home.

1. Revenue – This is one of the biggest reasons someone considers such a project.  The majority of hotel/condo projects are more established in areas like Florida and Las Vegas and anyone considering the purchase should research tourism trends.
2. Pre-furnished – Most all successful businesses have some consistency in service and appearance.  As a business, hotel/condo projects will rarely allow you to change anything about the room including fixtures, paint color or even blinds.
3. Convenient Space – A common trait among hotel/condo projects is that they generally offer a superior location than a traditional condo and are generally larger than nearby hotels.
4. Check-In – Unlike owning a condo as a 2nd home, hotel/condo projects require a notice in advance that you’ll be staying in your room (in some cases up to 60 days in advance).
5. It’s a Business – But you generally don’t have the responsibility other than the equivalent of paying an HOA-type fee.  In addition to having management and staffing to service the guests and property, hotels are generally experienced in marketing.
6. You Just Don’t Know – …what the return will be.  The U.S. Securities and Exchange Commission prohibits hotels and real estate firms from making any predictions.  Therefore you’ll need to know what types of property has the highest probability in appreciating.
7. Consistency – Tourism is generally seasonal. Despite a large increase in overall tourism to Seattle, there’s not nearly as many potential visitors in the Winter as there is in the Summer.  Also, keep in mind that rates can and will change.

If you have any questions regarding this type of investment, but sure to contact an experienced expert before making making any decisions.