EXPLORE OUR
LAND BUYING OPTIONS
Land is one of the most exciting purchases one can make. It means so many things to so many people; a nest egg, a sanctuary, a place to build a home, spend weekends, a gathering place for family, a legacy, an investment, a hedge against risk, an income generator… the list goes on.
The good news is that there are so many ways to pay for your land. Our professional staff can assist and inform you about any of these great options.
FIND OUT THE
ADVANTAGES TO EACH OPTION
1. CASH
A way to save money on the purchase
2. CONVENTIONAL BANK LOAN
We have done lots of research to find you great financing packages through banks. Call us for current best options.
3. BUYING WITH AN IRA (INDIVIDUAL RETIREMENT ACCOUNT)
Many don’t know this but real estate can be purchased with IRA funds without paying penalties and deferring taxes on the gains.
4. BORROWING AGAINST A 401K
You can borrow up to 50% of account value up to $50,000.
- With a 401k, you pay interest on the loan out of your own pocket and into your own 401k account.
- The interest on a 401k may be lower than what you could obtain through a commercial lender, line of credit, or a credit card, making the loan payment more affordable.
- There are generally no qualifying requirements for taking a 401k loan, which can help employees who may not qualify for a commercial loan based on credit history or current financial status.
- The 401k Loan Application process is generally easier and faster than going through a commercial lender and does not go on your credit report.
- If you are taking a loan to buy a home, you can have up to 10 years to repay the loan with interest.
5. HOME EQUITY LOAN OR HELOC
You can use the equity in your home to secure a loan. Generally faster and one can write off the interest.
FIND OUT THE
ADVANTAGES TO EACH OPTION
1. CASH
A way to save money on the purchase
2. CONVENTIONAL BANK LOAN
We have done lots of research to find you great financing packages through banks. Call us for current best options.
3. BUYING WITH AN IRA (INDIVIDUAL RETIREMENT ACCOUNT)
Many don’t know this but real estate can be purchased with IRA funds without paying penalties and deferring taxes on the gains.
4. BORROWING AGAINST A 401K
You can borrow up to 50% of account value up to $50,000.
- With a 401k, you pay interest on the loan out of your own pocket and into your own 401k account.
- The interest on a 401k may be lower than what you could obtain through a commercial lender, line of credit, or a credit card, making the loan payment more affordable.
- There are generally no qualifying requirements for taking a 401k loan, which can help employees who may not qualify for a commercial loan based on credit history or current financial status.
- The 401k Loan Application process is generally easier and faster than going through a commercial lender and does not go on your credit report.
- If you are taking a loan to buy a home, you can have up to 10 years to repay the loan with interest.
5. HOME EQUITY LOAN OR HELOC
You can use the equity in your home to secure a loan. Generally faster and one can write off the interest.
ALL YOU NEED TO KNOW ABOUT
BUYING LAND WITH YOUR IRA
Did you know that income from land purchased with a self-directed IRA flows back into that retirement account tax-deferred?
Buying land investments with your IRA diversifies your retirement portfolio and can offer better returns on investments.
1. IDENTIFY
Identify your investment property and agree to terms with the seller.
2. OPEN AN ACCOUNT
Establish an account by choosing a traditional, Roth, SEP, or Simple IRA. The banking entity will deposit income and pay expenses through the IRA at your direction. The banking entity provides record keeping and tax reporting for the account.
3. FUND YOUR ACCOUNT
Transfer funds from an existing IRA, rollover funds from a former employer’s plan (like a 401k), or make a contribution.
4. COMPLETE THE PURCHASE
Send final closing documents and required paperwork to your Trust. Your IRA owns the asset once purchased.
5. MONITOR YOUR ACCOUNT
Use the banking entity’s online portal to monitor your account. You can make contributions, request distributions, view statements, tax documents, and pay bills on behalf of the IRA. They also provide a secure document upload feature for time-sensitive delivery of important papers.