Tuesday, August 31, 2010

Buy Land With IRA Funds And Pocket The Profit!

If you are one of the many people that thing you cannot use IRA money to buy real estate, you are wrong! You invest your IRA money in a wide selection of investments that include stocks, bonds, mutual funds and money market funds. IRA money can be used even to purchase saving certificates and U.S. Treasury securities. You can even use your IRA money to purchase promissory notes that are secured by mortgages or deeds of trust and real estate. This includes houses, condos, office buildings and raw land.

While you cannot use IRA money to buy your own primary residence or any other property that you may live in, you can purchase investment property. This is where buying raw land will allow you to diversify your retirement investing. You may own stocks and bonds, and have a savings account already in place. You may even have a substantial size 401K plan for your retirement. However, owning raw land that can be resold for profit gives your portfolio diversification in your investing.

Raw land is a commodity and can provide asset security before and after retirement. Raw land can be turned into cash at any time to meet other financial emergencies or needs. We all know that land value will go up or down depending on the real estate market but it will always have value. By diversifying your portfolio with several sources of investment you will minimize your risks.

Maybe you prefer a passive investment and don’t want to worry about developing and re-selling raw land, you should still consider investing in raw land. You can partner with a seasoned, professional land developer by taking a partial ownership stake in a land development and not be directly involved with the management of the project. This method will enable you to invest in raw land and not have to be burden with learning all the phases of land development.

You may want to invest in self-directed IRA money for a future retirement home. By using the property as a rental until you retired, then take a distribution of the property from your IRA and pay any taxes before you move in. Not only will you make money from an investment for your retirement, but you will have selected your retirement location too! Perhaps you can share this bit of information with other prospective second-home buyers.

1 comment:

  1. With some budget friendly home staging techniques such as de-cluttering, simple rearranging, home repairs and clean surroundings must likely anyone can sell a house faster even without the help of a realtor.