Land IRA

4 Things to Keep in Mind When Buying Land in an IRA


1

Use of the Land

The land must be for investment purposes only. IRS regulations prohibit personal use of the land.

2

Ownership

You can own 100% in your retirement account. Or, you can split ownership with yourself using personal funds or another investor.

3

Loans

Midland is not a lender. What we do is help investors use their funds creatively, including retirement funds, to invest in real estate.

4

Long-Term Plans for the Land

If you are looking to buy and hold the land, you probably want to open an IRA with us. If you are looking to develop the land, you may want an LLC. We do both!

Buying Land In Your IRA

Land could be an excellent investment that provides better stability than other real estate and has low maintenance costs. Watch our video to learn about investing in land with an IRA.

Types of Land Investments

Raw Land Investments

Long-Term Holdings

Your IRA purchases the land, and you can resell when property values increase, providing a good return. There is the potential for economic growth, urban sprawl, or large corporations to build nearby. Any of these would increase the land’s value.

Speculative Holdings

Your IRA hopes to receive the same gains as with long-term holdings. However, these gains happen in a much shorter timespan. As with long-term options, these holdings require minimal effort. The cost of maintenance or upkeep is low.

Development and Subdivision Potential

These investments can be tricky but lucrative if the timing of the purchase and potential returns align with the stars. As this category indicates, land can sell in parcels rather than one giant tract. Savvy investors might be able to obtain significant returns using IRA funds to invest in land.

Farmland Investments

Farmland is generally considered a viable investment vehicle. It’s potentially a fixed resource that provides the means to grow and harvest crops, raise cattle, chickens, and other critical food sources. The risk in these investments can be minimal and provides stable returns. Farmland investments offer a hedge against inflation and stock market assets.

Land Investment FAQs

Can I build on the land?

Can I live on or use the land?

Can I sell the land?

Can I sell the land to myself when I want to use it?

Can I sell the mineral rights to my land? Can my land be used for an agriculture preservation program?

Who is listed on the deed?

Can I work the land myself?

What are the purchasing options? Do all funds need to come from the IRA?