If you want to take money out of your IRA to purchase a property you will not be assessed penalties because you are over 59 and 1/2 years of age. However you will be taxed at ordinary income for the distribution. There are vehicles that you can use if you are using the property as an investment and are not planning on living there where you can keep the money in the IRA and self direct it to purchase the real estate. There are tax rules that have to be adhered to in order to avoid the distribution and there are custodians that will administer the plan. I have helped many people purchase homes through their IRAs.... more
You can buy anything you wish depending on your comfort level and intellegence!
All you need to do is to watch the pre-foreclosure web sites, get the address, knock on the door, make an offer!
Now, just because you see property owner in default of their loan and in pre-foreclosure status doesnt mean that their house is for sale...many will pay the necessary money to get their mortgage current.... more