Golf Course Development With Your Self Directed IRA
Golf courses are so in demand that developers even build them with clay and packed sand in the middle of desert landscapes (see Saudi Arabia). Donald Trump bought a golf course on the Palos Verdes peninsula in Southern California after sinking ground dropped the 18th hole into the Pacific. After some renovation, Trump wound up with a world-class investment. Golf is a game played even by people who hate it!
Golf course development includes all aspects of building new courses or renovating existing courses, from design through implementation. Just because golf is popular, however, does not mean that every golf course investment will be a real money maker. Golf courses can fail to make money and fall into disrepair just as can any other investment involving commercial property.
The keys to making money with golf courses are finding the right location at the right price, finding and implementing a design that will appeal to golfers at various skill levels, bringing in tournaments and special events, and having the capability to amass premium greens fees. A development plan should at least address all of these concerns before you consider investing in it. This is especially true if you are considering spending retirement funds for it.
Investing IRA Funds in Golf Course Development
Say you have found the right plan with the right location and the right backing, if you do not have the right IRA you may not be able to invest at all. Traditionally custodied IRAs may not allow such investments. You will have to check with your custodian. However, if you have a self-directed IRA with checkbook control, you can invest solely in golf courses should you so choose. This is not recommended, though, since diversification is always advisable.
Written By Scott Janko, The National Association of Financial and Estate Planning (NAFEP)
For more details on the Self Directed IRA -ICOSM Click Here.
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