automobile loan. When you buy a car and you put down five grand, you owe the bank for the rest of the loan. You don't get the title to the car until you make your last payment. It's the same thing with a piece of land. When I finished making my last payment on my lot (for $ 5,000 ), that's when I got the deed. When my buyer at $10,000 finished making their last payment, I transferred the deed to them. Not only did I double my money from the appreciation (100% return ), I also made 10% interest for five
years—10% interest every year for five years. So, I got paid twice. You can't beat that.
year I bought hundreds of lots and grew a huge portfolio by leveraging real estate.
HELPING OTHER INVESTORS
SCALING THE STRATEGY I realized that if I could do those deals multiple times—10 lots paying me $400 a month or 20 lots or 50 lots or 100 lots—then I could get ahead faster. I got a loan into my IRA from my brother for $20,000 and used it for down payments on several vacant lots. I put $500 down on 40 vacant lots, all in my Roth IRA, tax free. Every
Today I help investors find quarter-acre buildable vacant lots in fast-growing resorts. We send out thousands of offers to buy lots at a discount each month. When we get interested sellers, we call to negotiate with them, check for liens, and check to ensure the lot is big enough to build on. We also check the topography and pay someone to physically inspect every lot to ensure they pass my criteria. If they do, we close on them and pay closing costs for our clients. Then we transfer the lots to the clients who are on our waiting list to get their lots. Most people who buy these lots have sold their stocks and mutual funds and/or bonds and annuities. Some have used their LLC to buy them, and some have used their IRA or old 401(k) plan or even their current 401(k) plan to buy these lots. Owning vacant lots in resort communities presents a unique and potentially lucrative investment opportunity. With its tangible, customizable, and income-generating features, this form of real estate investment offers a range of advantages that set it apart from more traditional investment options like stocks and mutual funds. By carefully considering your investment goals and conducting due diligence, you can harness these benefits and build a diverse and robust investment portfolio. •
Michael Poggi is a real estate investment advisor/investor/developer, with nearly two decades of experience. He’s an internationally recognized public speaker on buying real estate
in your IRA or old 401(k) plan. For more information, contact Poggi at michael@themillionairesgroup.com or (954) 258-6954.
thinkrealty.com | 39
Made with FlippingBook Online newsletter