You can have a self directed Roth or Traditional IRA. You can look them up via Google. You'll want to compare prices because they do charge an annual fee as well as some transaction fees when purchasing land, notes, homes, stocks, etc.
If its a traditional IRA then the proceeds go back into the account tax-deferred (because with a traditional IRA you claim a tax benefit going in). So when you withdraw the money you will pay INCOME TAX on it.
If its a Roth IRA then it goes back in and its TAX free ... i.e. when you withdraw you will not have to pay any income tax on it.
I might have mentioned this previously so if its a dupe ... forgive me.
A person I know who was declaring BK in 2009 was told to get rid of a note (carry back financing) on a home he sold. The face value of the note was ~ $80k - $86k (somewhere in there). Anyway, he could not find anyone willing to buy it so I told him that I would give him $25k for it. He was happy to get rid of it because the BK court would have just taken it away (per his attorney). I purchased the note through my self-directed IRA. i.e. I gave them the instructions to purchase and they did.
The payments on that note are ~ $630 per month and they go tax deferred straight into my IRA every month. The folks paying on the note contacted me recently to inform me they are looking to refi and pay it off. I looked up the payoff and its ~ $66k. They had made a down payment of $40k and there was no way they were going to lose that house -- so they HAVE NEVER MISSED A SINGLE PAYMENT.
(note was purchased with profits from penny stocks, of course)
It's easier for rich man to go through the eye of needle than it is for a camel to get into heaven.
