MILEAGE TALLY: 306/1,000
A few years ago I used a self-directed IRA to purchase vacant property across from our house. Self-directed IRAs are typically used for real estate development so you can add rental income into your retirement savings — but that’s not the only thing you can do with them. I used a self-directed IRA to prevent the development of an empty city lot (aside from landscaping it).
To protect this person’s identity s/he will not be named, but, I think you’ll find the perspective interesting and inspiring.
Do you know of anyone else who has used their self-directed IRA to buy a town?
What business(es) exist or are planned for your town?
When the Union Pacific pulled their maintenance station out of Keddie several years ago, the restaurant and hotel businesses had to find new customers. The then owner turned the businesses into student housing and cafeteria services. A few years before we acquired the town, the students moved to college housing and the businesses closed. Our plan is to complete the initial rehab of the 20 remaining cabins, which will take approximately 2 to 2 1/2 more years. We then hope to attract other IRA investors to the project to raise enough funds to complete the rehab in the restaurant, coffee shop, gift shop, grocery store, theater, convention center, day spa and amphitheater. All businesses will be rehabbed to current safety codes and be ADA compliant.
Why do you feel confident making these investments?
How walkable is Keddie?
What other plans do you have for Keddie’s revitalization/growth?
The restoration project planned for Keddie is designed to fit into the needs of the local communities in Plumas County. Currently the local community of Quincy is suffering a severe downturn in their economy. The unemployment rate is double the national average at 19.8%. This project is designed to ultimately hire approximately 60 temporary and permanent tradespeople from the local area. The planning process takes into account the need to bring the housing units and commercial businesses up to current building and safety codes. There is also a major interest in designing the various rehab projects to be as “green” as possible. The final rehab project will allow us to hire the following local tradesman:
- General Contractor: 1
- Electrician: 1
- Carpenter: 2
- Energy Consultant: 1
- Roofers: 3
- Tree Service workers: 3
- Portable lumber mill service: 2
- Plumbers: 2
- Painters: 4
- Security Personnel: 3
- Housekeeping Staff: 5
- Wait Staff: 12
- Cooks: 3
- Baker: 1
- Gardeners: 2
- Stone Mason: 1
- General Laborers: 4
- Bookkeeper: 1
- Network Administrator: 1
- Resort Manager: 1
- Day Spa workers / masseuses: 2
- Restaurant Manager: 1
My goal is to eliminate of about 1/2 of the local town’s unemployment. Cool thing to do with an IRA, huh!
Absolutely! Anything else you’d like to add about relocating to a small town / business building / etc?
The way the project is designed and currently working, the big ticket items are funded by our IRAs. The intermediate rehab of the cabins is funded by the cabins’ rent. Essentially, the town is building itself back by itself (given our design). I give tenants very cheap rent in exchange for their volunteer labor to continue the rehab work. The idea of this project comes from a form of martial art named Aikido. In Aikido you use the energy of an opponent (our little town) and redirect it into a positive direction. [emphasis added] If used correctly, you use very little of your own energy to accomplish your goal. I hope my ramblings have made sense. If not let me know and I’ll try to further clarify our ideas.