Home Forums Hunting & Shooting Hunter's Campfire Own LAND Inside Your SEP/IRA

I see so many of you that lament leasing land or trying to find a place to hunt... a heads up for an investment you may not have considered.

Just so you know, you CAN own land INSIDE your SEP/IRA's... it is a little more complex as far as getting the paperwork prepared, but certainly not prohibitive. The retirement account is the custodian and holds the investment, (land/stocks/funds etc) until you sell them or begin taking distributions. If you sell the investment (land) the funds stay inside your retirement account. You would be amazed at the game that a smaller parcel can hold if it is managed intensively and pressure is controlled.

Many of you already know that you can buy and sell land/timberland inside your retirement account. You just have to find a custodian that will allow real estate investments... Equity Trust is the one I have used for about 22 years... they are NOT the cheapest, but they are the best. There are many more custodians out there that will provide this service...

I like the diversification aspect... the only "downside" is the liquidity aspect... much like your home, if you "HAVE" to sell in an emergency, you will get what the market will bear. If you have time to market it and price it correctly, you will be better served.

Owning timberland inside retirement accounts is much more common now that when I was a broker with Merrill Lynch/ AGE many years ago. Back then, it was just conventional investments for the most part.

I started my self-directed ROTH with Equity Trust 15-20 years ago but was recommended a custodian about 1 1/2 hours away in birmingham, Al that I have been very pleased with. the name is IRA Innovations and their customer service is top notch. I drove down and met with the ceo before moving my account and I've dealt with the same lady every time I have done a transaction. couldn't be more pleased with their service

I have also heard good things from that group...

That's good info! Thanks!

It took a little time, but my self directed IRA is now invested in real estate. Any tips on making an unsolicited offer on timberland? John Hancock is a common one here. Are there good opportunities after they log an area?

I have had my wife IRA in land for 15 years.....has worked out great for her.....

How does that jive with the rules on owner use?

https://www.investopedia.com/articl...ing-your-ira-buy-investment-property.asp

KEY TAKEAWAYS
You can hold real estate in your IRA, but you'll need a self-directed IRA to do so.
Any real estate property you buy must be strictly for investment purposes; you and your family can't use it.
Purchasing real estate within an IRA usually requires paying in cash, and the IRA must pay all ownership expenses.
Holding real estate in your IRA can be tricky, with tax issues and red tape. But, on the other hand, property can provide you with a good (or great) rate of return and diversify your portfolio

We use Equity Trust on a parcel. It works great.... Very smooth transaction very professional...

Just contact their land manager for that region... they usually don't turn anything loose for a deal but it never hurts to make an offer.

From what you've quoted and what I've read, it appears to be a blatant violation of the IRA rules and very bad advice. This is assuming that the owner intends to use the property for his own recreation. If the OP is a tax attorney or CPA with info to the contrary then he should say so, and I'll be eating crow. Otherwise, no thanks.

Yup, buy a hunting lodge or land that you can’t use till you retire, bad advice.

For example, don’t expect to live in your property until you retire.

“This is not any kind of personal transaction,” Winston says. “This can’t be a primary, secondary residence or a vacation residence. It strictly has to be a business transaction.”

Neither you nor your immediate family can benefit from the investment before you reach the IRA’s distribution age. If you do, you’ll be slapped with a tax penalty and could have your IRA invalidated.

I heard a story about an old Mexican fella, barely made ends meet and a rich fella that worked his ass off all the time.

The Mexican hunted and fished public land or was guest on friends land. He has a lifetime of memories with his kids all the way to great grandkids. He lives in a small house on the south side of San Antonio. He is still alive today.

The rich fella hardly had time for family, thats what he was going to do in retirement…He died

Can’t take it with you, NIX the fuggin retirement investments, buy land and enjoy life now !