066: Wall Street Insider and Self-Directed IRA Expert Belinda Savage

Belinda Savage grew up in New York and started working on Wall Street at the age of 17. She was a bond trader at 24 and eventually went into the self-directed IRA business. Belinda grew up around stocks and bonds, but loved the real estate industry when she was introduced to it. In this episode of the InvestFourMore Real Estate Podcast, we talk about how she got started in Wall Street, how she transitioned into the self-directed IRA business, opportunities for investors, what she thinks of the housing market, advice for new investors and much more.

Investing in a self-directed IRA

I already talked with Matthew Tillack a few weeks ago about the ins and outs of buying houses with a self-directed IRA. Belinda and I talk about how to use self-directed IRA’s for houses and other investments as well. Just about the only thing you cannot use a self-directed IRA for is collectibles, life insurance, and running a business (remember to always talk to an accountant or lawyer for your specific needs). What is really interesting is that 95 percent of CPA’s do not know how to properly use a self-directed IRA, so you must find an expert in the business to make sure you are using every advantage you can.

Real estate notes is something that Belinda encourages investors to buy with their IRAs. Note investing takes some time to learn about, but you can essentially become the bank. We talk about how to buy notes and what happens if the borrower falls behind on their payments and the investor has to foreclose on a note in their IRA.

How can you invest in real estate with little money down?

Belinda and I also talk at length about investing with little money using an IRA. She works with many investors who may only have a few thousand dollars, but want to get started investing in real estate. It is not easy to buy with little money down as an investor, but possible. She mentions a few ways investors can use self-directed IRA’s in conjunction with partners to buy houses or notes. Not everyone investing in a deal has to have their money in an IRA and there are many ways to structure a deal. There are also ways to get a loan to buy houses in a self-directed IRA, as long as they are non-recourse.

What does Belinda think about the current housing market?

Many people think we are in a housing bubble because housing prices have increased so much. I think that there may be bubbles in certain areas of the country, but I don’t think we will see a huge crash like we did ten years ago. Belinda thinks we may be in bigger trouble than I do and talks about her contacts and why the housing market may be in trouble. However, she does not think the entire country is going to crash again. In fact, she made a very good point that baby boomers are nearing retirement age, and areas that have many retirement communities could see a huge housing boom when they start moving to warmer climates.

I am still planning to invest in Florida, although I have been slow about it. She thought Florida and Arizona will be particularly strong markets in the next decade because of the baby boomers.

How can you contact Belinda to talk about self-directed IRA strategies?

Belinda is very easy to get in touch with and you can email her at [email protected] or call her cell phone, which is 480-239-5539.