How best to invest in vacant land? Part III of our When, Where, How series on land investment

Published: Mon Sep 22 2008

Part III of our when, where and how series. In our previous releases informed investors that now is the best time to buy land, and to buy land near growing populations with sustainable growth. So, how does one invest in vacant land or pre-developed raw land? Well there are a number of ways to invest for the long term. The primary means is by cash purchases for typically lower priced parcels. Property in Northern Los Angeles County and Eastern San Bernardino County can be very affordable as a cash investment. Lenders usually shy away from undeveloped land loans, and when they do the interest rates are greater than a typical home mortgage loan.

Current Investors who are selling real estate are increasingly using the 1031 exchange option. Under the rule a real property owner can sell their property and then reinvest the proceeds in ownership of like-kind property and defer the capital gain taxes. In order to qualify as a like-kind exchange, property exchanges must be done in accordance with the rules set forth in the tax code and in the treasury regulations. A 1031 allows you to sell a property and exchange it and incur a no gain or loss to the IRS. It can be done over and over, but you will need a professionally qualified intermediary for a deferred exchange transaction.

A growing method of investment is via an IRA. Lance Dorman of said “Now with Wall Street volatility rolling an IRA into land has become a viable alternative to the stock market”. “We know how to help investors to do that”. An investor must have a self-directed individual retirement account, which allows them to invest in assets other than stocks, bonds and mutual funds. With a self-directed account, people can invest in real estate, and even commercial businesses. There are IRS rules to using your IRA in real estate investment, and this can be handled by a qualified IRA custodial. Some typical rules are that funds to refurbish and maintain the property must come from your IRA account. Also, the IRA investment can’t be you own home. Ideal investments for a real estate IRA are investment income properties and vacant pre-developed and undeveloped land.

There are a number of options to buy land and secure your investment and retirement future and defer tax liability that established and readily available. can assist you to locate the right intermediary for IRA’s and 1031, and they can provide you with information about the land market in California. was formed to help investors find land investment opportunities, especially to help them find California land in the path of growth.
The company can be reached at 213-500-9578 or .
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Lance Dorman
2130 Fillmore Street Ste 132
San Francisco, Ca. 94115
213 500-9578
Contact Name: Lance Dorman
Contact Email:
Contact Phone: 213 500-9578

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