You must diversify your investment portfolio to lessen your risk, we all know that. Did you know though, that you can invest in real estate using your IRA? Within certain guidelines and following certain rules, the IRS allows you to use retirement money for real estate investing. This is can be condos, office buildings or even raw land. Use your IRA funds to buy the property then turn around and sell it to a developer for a profit! You’ll be using money that is yours without touching your household income!
You may have some money in stocks, bonds and even a savings account already. However the interest earned is very small unless you have a bulk of money in those for at least 15 years or more. However, raw land investing can increase your retirement funds quicker and maybe allow you to retire sooner than originally planned! Stocks will go up and down, bonds can lose their value and savings accounts have slow growth. There is no more land being made though! You will be investing in something that is limited!
If you aren’t familiar with raw land investment it is when you buy land for the purpose of developing then resell for profit. You may want to make it a long-term investment or a quick turn-around. Raw land can increase as much as 300% on the average. Financial advisors and fund managers don’t offer raw land investment even though they are a favorite of the very rich because they won’t make a commission on that purchase.
In fact, banks, mutual funds and insurance companies prefer to be the middle man by only offering IRA accounts that are lucrative for them such as stocks, bonds and other ‘paper financial’ investments. Therefore, you are on your own when it comes to investing in real estate and using your IRA funds to do so.
So if your retirement is coming up soon or still a few years out and the government’s recent announcement that the Social Security plan is in the red, won’t it be a good feeling to know you have your financial future secured yourself?
Showing posts with label we sell land. Show all posts
Showing posts with label we sell land. Show all posts
Tuesday, September 7, 2010
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.
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.
Saturday, August 28, 2010
Real Estate Investing With Your 401k Money
You may already have a 401k account in place. Since those funds have taken a drop over the past couple of years, you are now looking for other ways to build up your retirement nest egg. Have you considered using part of your 401k to increase your retirement nest outside of your 401k account? Probably not, most people don’t know that there are ways to use their 401k’s for other investments outside what is offered there.
Many investors have started their real estate investing by buying raw and vacant land with their 401k funds and making a tidy profit too. This is not only creative thinking, but it is safer than using your own money. However there can be risk too if you don’t watch how you go about it. This needs to be a personal decision based on your own preferences.
One way to use your 401k for real estate investing is by taking out a loan against your 401k. You probably have always thought of your 401k to be where money went out of every paycheck and built up into a lump sum that sits there, drawing some interest, till you retire. Other than seeing that contribution deducted each pay check, you may not even think about your 401k until income tax season. Good news! Your 401k and raw land investments can create a meaningful relationship that will earn you more money!
Seasoned investors will tell you that the main goal with real estate investing is to use little to no money of your own. This is even more so when buying vacant land. When you borrow against your 401k to finance your land investment, you won’t be using monies that you depend on to pay your bills and survive. You want use this money to purchase good deals on land and then when the economy turns around, you sell it and receive all your original money and more. This allows you to payback the loan without affecting your 401k. You won’t be taking the money out of your pocket and you’re paying yourself back with interest.
As with any investing, there are some cautions you need to be aware of though. Such as there is probably a maximum amount you can borrow against your 401k. That amount can vary based on how much you have in your 401k. Also, there are no tax benefits when you finance a portion of any real estate transaction with your 401k. Nor will that real estate purchase be eligible for mortgage-interest tax deduction either.
If you aren’t a risk taker, there is a more safe and secure way to invest in land and still use your 401k. There are 401k plans out there that offer the option to invest in real estate trust. The part that makes this safer for you is that the trust companies do the actual real estate investing. This is less work and worry for you, but you also have less control on what real estate they invest your money. You found a good deal on a piece of land, but you have no control of your money purchasing it.
If your 401k doesn’t offer a real estate trust, another option is move the money from your 401k in to an IRA if that is allowed. You will be penalized for taking your money from the 401k, but it will give you more flexibility with your money. And with the right land purchase, you will make more than enough profit that the penalty is a small cost to pay. Even with this method, remember that you are only borrowing the money for a short time and make sure you repay yourself as soon as a deal is closed. Keep the profit available to purchase your next land investment.
Many investors have started their real estate investing by buying raw and vacant land with their 401k funds and making a tidy profit too. This is not only creative thinking, but it is safer than using your own money. However there can be risk too if you don’t watch how you go about it. This needs to be a personal decision based on your own preferences.
One way to use your 401k for real estate investing is by taking out a loan against your 401k. You probably have always thought of your 401k to be where money went out of every paycheck and built up into a lump sum that sits there, drawing some interest, till you retire. Other than seeing that contribution deducted each pay check, you may not even think about your 401k until income tax season. Good news! Your 401k and raw land investments can create a meaningful relationship that will earn you more money!
Seasoned investors will tell you that the main goal with real estate investing is to use little to no money of your own. This is even more so when buying vacant land. When you borrow against your 401k to finance your land investment, you won’t be using monies that you depend on to pay your bills and survive. You want use this money to purchase good deals on land and then when the economy turns around, you sell it and receive all your original money and more. This allows you to payback the loan without affecting your 401k. You won’t be taking the money out of your pocket and you’re paying yourself back with interest.
As with any investing, there are some cautions you need to be aware of though. Such as there is probably a maximum amount you can borrow against your 401k. That amount can vary based on how much you have in your 401k. Also, there are no tax benefits when you finance a portion of any real estate transaction with your 401k. Nor will that real estate purchase be eligible for mortgage-interest tax deduction either.
If you aren’t a risk taker, there is a more safe and secure way to invest in land and still use your 401k. There are 401k plans out there that offer the option to invest in real estate trust. The part that makes this safer for you is that the trust companies do the actual real estate investing. This is less work and worry for you, but you also have less control on what real estate they invest your money. You found a good deal on a piece of land, but you have no control of your money purchasing it.
If your 401k doesn’t offer a real estate trust, another option is move the money from your 401k in to an IRA if that is allowed. You will be penalized for taking your money from the 401k, but it will give you more flexibility with your money. And with the right land purchase, you will make more than enough profit that the penalty is a small cost to pay. Even with this method, remember that you are only borrowing the money for a short time and make sure you repay yourself as soon as a deal is closed. Keep the profit available to purchase your next land investment.
Wednesday, August 25, 2010
Invest In Land for Your Retirement Fund
The old fashion way of saving for your retirement is not giving out the high returns any more. The stock market method isn’t safe either in today’s economy. So what is the best way to build up your retirement account? Invest in real estate! Yes, even better, invest in raw and vacant land!
There is no bad reason that should keep you from investing in land. If you are looking for a way to build your retirement account, land investing is the fastest way to make money in real estate. You want to buy land in markets that is selling fast. However, you must do your homework to make sure you will get the maximum from your investment. So the trick here is to know how and when to act with land investments.
Yes, the economy is still suffering, but now is the time to really start looking at investing in real estate, most especially in land deals. Certain areas of the country are hot markets right now such as the South. This is an area you can expect to get a significant size return on your investment in just a few short years.
In these economic times, you want to get the best investment strategy that will offer you high returns and low risks. Land investment is one that will offer you just that. You may have the idea that only the independent wealthy can afford this type of investments, but you are wrong. By doing your homework and playing your cards right, you can invest in land with a small amount.
Property that is not developed offers the greatest return. Experts will agree that land property investments offer higher returns on a more consistent basis. Land investments are safer than other investments and the value will only appreciate. Making a land investment you will know going in that you will get a higher return, as much as up to 200 percent even. With a stock market investment, the average return is as low as 4 percent.
While retirement is a hot subject these days for just about anyone that is in the work force. We are all worried about our retirement funds and social security isn’t looking strong right now either. Many Americans are looking for a new way to investment their money and find a strategy that will ensure they are protected financially when it comes to the retirement years.
For many would-be retirees the stock market, 401 K, insurance, and savings are not giving them the peace of mind for their financial freedom they had hoped for all these years. So what many of us are now realizing is that there are other investment strategies that many other have been very successful to secure their financial freedom when they retirement. Land investing is one of the smartest things you can do to increase your net worth and secure your financial freedom. For land investments, you can expect is a significant return on your investment as land will always appreciate in value.
There is no bad reason that should keep you from investing in land. If you are looking for a way to build your retirement account, land investing is the fastest way to make money in real estate. You want to buy land in markets that is selling fast. However, you must do your homework to make sure you will get the maximum from your investment. So the trick here is to know how and when to act with land investments.
Yes, the economy is still suffering, but now is the time to really start looking at investing in real estate, most especially in land deals. Certain areas of the country are hot markets right now such as the South. This is an area you can expect to get a significant size return on your investment in just a few short years.
In these economic times, you want to get the best investment strategy that will offer you high returns and low risks. Land investment is one that will offer you just that. You may have the idea that only the independent wealthy can afford this type of investments, but you are wrong. By doing your homework and playing your cards right, you can invest in land with a small amount.
Property that is not developed offers the greatest return. Experts will agree that land property investments offer higher returns on a more consistent basis. Land investments are safer than other investments and the value will only appreciate. Making a land investment you will know going in that you will get a higher return, as much as up to 200 percent even. With a stock market investment, the average return is as low as 4 percent.
While retirement is a hot subject these days for just about anyone that is in the work force. We are all worried about our retirement funds and social security isn’t looking strong right now either. Many Americans are looking for a new way to investment their money and find a strategy that will ensure they are protected financially when it comes to the retirement years.
For many would-be retirees the stock market, 401 K, insurance, and savings are not giving them the peace of mind for their financial freedom they had hoped for all these years. So what many of us are now realizing is that there are other investment strategies that many other have been very successful to secure their financial freedom when they retirement. Land investing is one of the smartest things you can do to increase your net worth and secure your financial freedom. For land investments, you can expect is a significant return on your investment as land will always appreciate in value.
Friday, August 20, 2010
Why Should You Buy Vacant Land?
While the housing part of the real estate market slowed down the past few years, the raw land part of real estate has not only maintained, but it has heated up. If you have thought about buying raw, vacant land now is the time. Many experts say that they haven’t seen this much movement in the market in years.
The question many are asking is why? What good is raw, vacant land when the economy is as tight as it is right now? With job losses at an all time high along with foreclosures, why on earth is vacant, raw land such an attraction? Why would anyone buy something such as vacant land that they can’t use today?
The questions above are the answers too. Because of the high unemployment rate, many people that have been sitting on vacant land and need to sell it quick. They are willing to sell it below market for a boost to their cash flow. This is a last ditch effort for many to get the cash they need to catch up their payments on their primary residence as well as their monthly bills.
Another reason land is selling as good is because there isn’t any more land being made. What we have today is all we are going to have. So those people with money in the bank and jobs going good today are looking for someplace to invest that money that is safe.
This is one reason the generation referred to as Baby Boomers are buying raw land. They have seen the economy as it is now and as it was in the 80’s when the stock market crashed. They want to put their money in something that won’t disappear and as we said, land is here to stay, its limited resource and there won’t be any more made.
There are people that want to buy a second home for either retirement or vacations and maybe don’t have the money to do so right now. So they are buying vacant lots with plans to build in the future. They can start getting things done little by little such as septic, electric and water as they can afford it. Then perhaps buy a travel trailer or mobile home to sit on it while they build behind it.
Real estate experts believe that farm values are going to rise at a rate of 6 percent to 10 percent over the next five years. It is also expect that the median U.S. home is going to increase by 1.2 percent by the end of 2010. The economy is weak, but it is expected to turn around. Those people that have lost their jobs and home and have struggled these last few years will become employed again. Many are going to look for ways to get themselves in better position for the future and put their money where it will be safe. Again, they aren’t making land anymore!
Some people are even considering timberland as an investment purchase. This land has beaten the stock market for as far back as data is available to track both. While stocks have increased each year by nearly 12%, the total return on timberland was almost at 14%. Timberland is not familiar with activities on the on the stock market.
So expect the demand for land to remain strong for the next few years over any other forms of real estate. Polls taken lately show that at least 73% of those asked and responded expect to purchase land within the next 12 months. So buy yours today before they run out of stock! Because we all know, they aren’t making it anymore!
The question many are asking is why? What good is raw, vacant land when the economy is as tight as it is right now? With job losses at an all time high along with foreclosures, why on earth is vacant, raw land such an attraction? Why would anyone buy something such as vacant land that they can’t use today?
The questions above are the answers too. Because of the high unemployment rate, many people that have been sitting on vacant land and need to sell it quick. They are willing to sell it below market for a boost to their cash flow. This is a last ditch effort for many to get the cash they need to catch up their payments on their primary residence as well as their monthly bills.
Another reason land is selling as good is because there isn’t any more land being made. What we have today is all we are going to have. So those people with money in the bank and jobs going good today are looking for someplace to invest that money that is safe.
This is one reason the generation referred to as Baby Boomers are buying raw land. They have seen the economy as it is now and as it was in the 80’s when the stock market crashed. They want to put their money in something that won’t disappear and as we said, land is here to stay, its limited resource and there won’t be any more made.
There are people that want to buy a second home for either retirement or vacations and maybe don’t have the money to do so right now. So they are buying vacant lots with plans to build in the future. They can start getting things done little by little such as septic, electric and water as they can afford it. Then perhaps buy a travel trailer or mobile home to sit on it while they build behind it.
Real estate experts believe that farm values are going to rise at a rate of 6 percent to 10 percent over the next five years. It is also expect that the median U.S. home is going to increase by 1.2 percent by the end of 2010. The economy is weak, but it is expected to turn around. Those people that have lost their jobs and home and have struggled these last few years will become employed again. Many are going to look for ways to get themselves in better position for the future and put their money where it will be safe. Again, they aren’t making land anymore!
Some people are even considering timberland as an investment purchase. This land has beaten the stock market for as far back as data is available to track both. While stocks have increased each year by nearly 12%, the total return on timberland was almost at 14%. Timberland is not familiar with activities on the on the stock market.
So expect the demand for land to remain strong for the next few years over any other forms of real estate. Polls taken lately show that at least 73% of those asked and responded expect to purchase land within the next 12 months. So buy yours today before they run out of stock! Because we all know, they aren’t making it anymore!
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