604: He Made $100K Per Month With Vacant Land (IRA Strategy)

For example, let's say that you have an IRA right now at Schwab or Fidelity or whatever, and you want to use it to start to become a land banker like I did.

I buy lots for around ten grand, and I only buy lots in specific narrow criteria areas.

My criteria is very narrow because after 30 years of doing this, I have learned where not to buy, where to not buy land.

And some of you, some of you put in the comments, "What about California?" Heck no.

California is the last place that I would buy any land or real estate for that matter.

So same thing with Florida.

There's land for sale all around me, but an acre in Florida is 500 grand where I live.

An acre in Alabama or Tennessee or Texas or Arkansas, probably between 10 and 20 grand.

Big difference, right? So my criteria is very narrow, and we have become an expert at identifying the fastest growing subdivisions in the country that have permits getting pulled for people to build houses and quarter acre buildable lots on paved roads with utilities and lakes and golf courses and amenities, and those properties are the ones that I've done the best with over the last 30 years.

So let me give you an, an example.

In Texas, most of you know Austin, Texas, right? In Austin, Texas, there was a subdivision that was a resort community near Lago, uh, called Lago Vista, Texas, and it was right near Lake Travis.

So in that subdivision, I was buying in there many years ago, over 20-some years ago, and I started buying lots as fast as I can for $9,000, $10,000, and $11,000.

That was my buy box.

So I started to buy lots in there, and I would buy those lots and hold them in my self-directed Roth IRA, which we call a real estate IRA.

So in other words, they're not at Schwab, they're not at Fidelity.

And then I took my old 401(k) plan and rolled that over into my self-directed IRA with an administrator.

So that means that I can use my IRA for lending, new construction, fix and flips, mobile homes, you name it, land, land banking, whatever.

So I went ahead and started to use my IRA to purchase those lots in that resort community, and that was after practicing with lots in Florida that didn't do as good.

They went up, but the taxes were too high.

I had to mow the grass every two weeks, which is a waste of, waste of money.

So we only buy wooded lots that are between an acre...

I'm sorry, a quarter acre to an acre on paved roads that are right around the 10 grand to 20 grand mark, somewhere between 10 and 20, and we're buying those to hold them so they appreciate.

For example, let's say that you have an IRA right now at Schwab or Fidelity or whatever, and you want to use it to start to become a land banker like I did.

I buy lots for around ten grand, and I only buy lots in specific narrow criteria areas.

My criteria is very narrow because after 30 years of doing this, I have learned where not to buy, where to not buy land.

And some of you, some of you put in the comments, "What about California?" Heck no.

California is the last place that I would buy any land or real estate for that matter.

So same thing with Florida.

There's land for sale all around me, but an acre in Florida is 500 grand where I live.

An acre in Alabama or Tennessee or Texas or Arkansas, probably between 10 and 20 grand.

Big difference, right? So my criteria is very narrow, and we have become an expert at identifying the fastest growing subdivisions in the country that have permits getting pulled for people to build houses and quarter acre buildable lots on paved roads with utilities and lakes and golf courses and amenities, and those properties are the ones that I've done the best with over the last 30 years.

So let me give you an, an example.

In Texas, most of you know Austin, Texas, right? In Austin, Texas, there was a subdivision that was a resort community near Lago, uh, called Lago Vista, Texas, and it was right near Lake Travis.

So in that subdivision, I was buying in there many years ago, over 20-some years ago, and I started buying lots as fast as I can for $9,000, $10,000, and $11,000.

That was my buy box.

So I started to buy lots in there, and I would buy those lots and hold them in my self-directed Roth IRA, which we call a real estate IRA.

So in other words, they're not at Schwab, they're not at Fidelity.

And then I took my old 401(k) plan and rolled that over into my self-directed IRA with an administrator.

So that means that I can use my IRA for lending, new construction, fix and flips, mobile homes, you name it, land, land banking, whatever.

So I went ahead and started to use my IRA to purchase those lots in that resort community, and that was after practicing with lots in Florida that didn't do as good.

They went up, but the taxes were too high.

I had to mow the grass every two weeks, which is a waste of, waste of money.

So we only buy wooded lots that are between an acre...

I'm sorry, a quarter acre to an acre on paved roads that are right around the 10 grand to 20 grand mark, somewhere between 10 and 20, and we're buying those to hold them so they appreciate.