Sunday, May 15, 2011

How to Diversify Investments by Rolling Over or Transferring an IRA/401k into California Land Investment?

Most IRA’s and 401k are invested in stocks and bonds, but many are not aware that you can invest the money that you have in your IRA or 401K into land investment. This also includes investments such as other real estate, precious metals, and commodities.
You can simply do this by rolling your current IRA and/or 401K account into a new "Self Directed IRA" account at no major cost to you. You will also retain the tax deferred status without penalties as you have not cashed out your investment. The Self Directed IRA Company will do most of the work for you, but the stock brokerage may work to attempt to retain you as their customer.
Part of the reason a Self Directed IRA is more valuable is that it provides more control and choices. This control provides you the ability to invest in land, or precious metals like gold and silver which all are hedges against inflation. If you speak to a gold or silver investment company they typically suggest a five year hold in those precious metals. In addition, land investment companies also suggest a five year or longer hold. Longer term holds depends on the location of your land investment (distance from development), and your future retirement horizon goals.
There is a difference between and transfer and a rollover. When implementing a transfer your IRA assets are moved directly from one financial institution (typically a brokerage) to another without the IRA owner actually taking possession of the assets. An IRA transfer avoids any possible tax liabilities that could occur by taking possession of your IRA/401K funds, while a rollover occurs when an individual requests a distribution from an IRA or a Qualified Retirement Plan. Your investment firm would then roll the funds into the Self Directed IRA. According to IRA laws you are allowed only one roll-over in any 12 month period. Of the three types of rollovers a Qualified Retirement Plan Direct rollover is not treated under this 12 month rule, while the other two rollovers IRA roll over and a Qualified Retirement Plan rollover are.
An IRA Rollover occurs when an individual has personally taken the distribution of funds from their IRA. You then have 60 days to rollover the distribution into another IRA. If this is not completed in the 60 day period you would be subject to a 10% tax penalty.
The process begins by your establishment of a self directed IRA account. You then initiate the transfer with a transfer form provided by your current IRA holding custodial.
You then designate the new self directed IRA custodial and they receive your funds as the new custodial. You don’t have to transfer your entire IRA/401k but just as much as you need for the new investment.
Your new self directed IRA is now available to receive California land investment. VacantLandDeals specializes in low priced and low capital land investment opportunities. They have land near development typically with ideal zoning in the path of growth for future urban development providing your exit strategy in five to fifteen years. VacantLandDeals also specializes in investment capital under $50k and some investments fewer than twenty thousand, so the low capital and low risk investment has the opportunity to mature. Go to to review an investment opportunity.

Monday, May 2, 2011

Beautiful Earth Group Breaks Ground in the City of Lancaster Ca. as Another Alternative Energy Company Turns Rural Land into Developed Land

The City of Lancaster, Ca. continues to move alternative energy projects forward in their quest to be the Green Capital of California and the nation. Recently The City Council gave initial approval for a new solar energy project proposed by a New York firm Beautiful Earth Group at 90th West at H on 180 acres of land on the west side of the city in Del Sur. The Del Sur Solar site looks to be from 80th West to 90th West along Ave H in an L shape form and the narrow portion of the L from 80th to 85th W down to H-8. The city has already approved the Tuusso High Desert Solar project that will generate 20 megawatts of power after completion next year at 100th West at H. The other two solar sites within the city limits are Sunlight Partners and E-solar which we have referred to before.
Beautiful Earth Group is a Brooklyn NY Non-profit firm focused on developing wind power and solar energy facilities for utility companies and government and commercial users. They indicated to the press that they targeted this location as it was on previously disturbed land “farmed land” so eliminating its environmental impact. They also use less water than the steam generating solar facilities. This project will compose of two 19 mega-watt facilities and will generate energy to power 10,000 homes. The city’s planning department last November approved changes to the general plan and zoning to allow this Beautiful Earth project to move forward. The site is also situated next to a large SoCal Edison Substation at 90th West at H. Press releases indicate that the company is still in the process of getting power purchasing agreements from Edison. But the city of Lancaster is creating opportunities and fast tracking permits in order to facilitate green energy technology within current city limits.
What does this mean for a land investor? Well it shows that large portions of city and county land have been bought for developers other than residential and typical commercial developers. Although there is a great deal of land available in the Antelope Valley these solar and wind turbine sites take up a good portion of available land. The real estate growth in Southern California is in Antelope Valley, as fewer homes are being built here and elsewhere, but alternative energy firms Beautiful Earth, E-solar, First Solar Inc., NRG Energy, and BYD are moving into the valley and maybe your parcel will be next.