The Simple Land Investment Program

That is Simple as in Savings Incentive Match Plans for Employees of Small Employers

The first thing you want to do is set up a Simple IRA. A Simple IRA is self-directed by definition. It's kind of like a 401(k) in that regard. The employer (you) runs it.

You can be a one-person business and still be eligible to establish a retirement plan for the business. An employee age 50+ can contribute $12,500.00 per year to the plan with a "matching" contribution from the employer (even if the employee and employer is the same person). The employer is the Administrator of the Plan and the reporting requirements are "simple" as well.

What this means in a nutshell is that you could establish this Plan for your business at the end of one year and within a few days fund it for two years, to the tune of about $50,000.00. That's a whole lot more than a traditional IRA.

Now with $50,000.00 and annual contributions of $25,000.00 you are ready to begin your land investment program.

First things first. Form an LLC with the Plan as the only member. You can get away with multiple member LLCs, but you'll need a CPA or tax attorney to guide you.

Find a piece of land outside of town but in the path of progress and buy it within the LLC. Maybe the owner wants $250,000.00 for it. If it is anywhere close to the real value buy it. The most important thing will be the owner's willingness to "carry" at a reasonable interest rate. This is much more important than the price. Remember you have $25,000.00 per year for payments, taxes, and upkeep. This will limit how much you can pay on payments.

One way to increase what you can pay per month is to rent the land to somebody, such as a farmer or a nurseryman.

Other high contribution retirement plans are the SEP IRA (formerly Keough Plan) and the Defined Benefit Plan Trust. Check with your financial advisor for which plan best suits your needs. You can use any of these vehicles for land investment. And if you don't know why you should invest in land read this.