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Monthly Archives: August 2017

Find Cheap Land

While it is true that vacant land is less expensive than houses, that is a blessing when it comes to your startup capital. It is much cheaper to buy vacant land than it is to buy houses, apartments, or commercial buildings.

And as any landlord can attest, owning rental property comes with a myriad of headaches, from clogged toilets to evicting deadbeat tenants. Raw land has the advantage of being maintenance free while increasing in value over time. And if you can find cheap land, then there is almost no reason to not get involved with vacant land.

One thing to keep in mind with land is that like all types of real estate, location is everything. One tenth of an acre in Manhattan could cost millions of dollars, but travel a few counties away from the cities and you can get many acres often for a few thousand dollars. The sweet spot is when you can find an area that’s close enough to a metropolitan area to be desirable, yet far enough that you can find a great deal.

The best types of sellers for cheap land are the ones who have a reasonable expectation of what their land is worth. Oftentimes, people have owned their land for decades and expect to be paid market value or higher just because they’ve paid taxes on the property for all these years. These are not the sellers you want to do business with.

Unfortunately, many of the properties listed on the Realtor’s MLS fit this description. They think their property is worth X amount because so-and-so down the street sold it for a big amount back in 2007. But Mr. Seller doesn’t mention that his neighbor’s property is twice as big, has several potential building sites, and a beautiful stream running through it! Yes, sellers tend to forget these details and have expectations out of touch with reality.

If you are looking for the best land deals, it is in your interest to seek out a land expert. A professional real estate investor who focuses on vacant land often gets great deals by buying properties in bulk, and then passes the savings on to you in order to unload the property quickly. These deals are often from sellers who inherited the property, or are very behind on property taxes, or just don’t want the land for whatever reason.

Get Financing for Land and Lots

Since this is something the average person only does once in a lifetime you may not be sure as to how to start and where to begin when it comes to financing for land or home lots for building. When it comes to finding financing for residential land it is quite different in comparison to simply applying for a mortgage on an already built home. Today the interest rates are actually quite high with a very low loan to value ratio.

Research is really the number one key when it comes to finding great rates for land and lot mortgages. One of the best rates in the country rate now is lending to 38 of the states with 80% loan to value ratio and 3% interest rate; this is the type of find you have to jump on when they come along. These figures are certainly not average. Today the average loan to value ratio is closer to 60% with interest rates in the range of 6-7%. This is a significant jump from the numbers posted above and in some cases these higher percentages can make or break your dreams of buying your own lot and building your own home.

In order to be approved for one of these hard to get mortgages you will have to have several requirements met. First, you must have a satisfactory income to debt ratio of no more than 45%, the ability to come up with the down payment, 20% if you can find a good lender with good rates but this can be up to 40% in some cases and a credit score in the 700s to qualify without any problems. Also as a first time buyer it is important to note the other costs associated with your new purchase:

• Closing costs of about 1-2% of the entire loan amount
• Appraisal fees ($400-$600)
• Title fees

Many first time buyers are not aware of these additional costs and it can really harm your bank account when you do not budget accordingly.

Real estate professionals believe there is no better time than the present to be purchasing vacant land around the country. This aspect of the real estate market was hurt just as badly as residential homes and therefore there are many people around the country trying to unload their land lots to prospective buyers like yourself. In the past it was a profitable market to take vacant land and flip it but after the real estate market crash this business has become obsolete. Now is the time for home builders to find the lots of their dreams and begin building.

Start researching online and offline today to find the best lending deals serving your state or province and community in order to make financing a simple and profitable process. There are many qualified professionals to speak to.

 

Buy Land For Farming

Buying land doesn’t have to be tricky if you have the right people helping you every step of the way. You will need a team of professionals you can call like agents, brokers and maybe even a lawyer. Buying a farm is quite different then buying a residential lot. This may seem obvious but have you considered what it means to purchase bulk acreage. Have you surveyed this acreage and made sure that it will meet all your requirements?

First, have all your financial ducks in a row, so to speak before you even begin looking to buy land. You will be ready to buy as soon as you find what you’re looking for, if your finacing has already been secured.

Secondly, you should choose an agent who has experience with selling farm land since there are many specifics involved in terms of paperwork and land requirements that everyone will need to be on the same page about. The USDA’s website has all the documentation for many different types of land purchases.

Third, you should carefully examine the property, do not really on pictures or hearsay. make sure yourself, that everything you want is there. Do you plan on planting crops? Do you know for sure your soil is good and fertile enough for planting? Does it have proper drainage and irrigation?. Is there a place to put your equipment? Such as, a large barn, shed or other lot?

Lastly, have you done your research on insurance? You will need to know your options here as well as find someone you trust to help you cover all your bases. You need to insure your crops, even if it seems expensive, it will still be the best decision you made in case of a natural disaster which wipes out your harvest such as a tornado or a flood. In case of disaster, you shouldn’t rely on FEMA to save you. You should have a good insurance plan to cover your losses.

Spending time on a farm closer to nature and having an intimate knowledge of growing and caring for your food supply can be rewarding as a hobby or financially rewarding if you plan to take your fruits, vegetables and or meats to market. Whichever type of farm you wish to buy whether it be hobby, or livelihood. Check into rates on your loans for farm and carefully choose a real estate agent who knows the ins and outs of purchasing farmland.

 

Learn How to Sell Land Online Fast

These differences are important to take into consideration if you find yourself needing to sell land, because the strategies for selling the two types of properties are quite different, particularly if you need to know how to sell land fast.

Selling a house is not the same as selling land

Let’s think about some of the major differences between the two:

  • Fewer people are looking to buy land than houses Land just isn’t as popular as houses are. That’s pretty obvious, since most real estate transactions are made by people looking for a place to live, not an investment or a place to build. This is important to keep in mind, because simply putting up a sign or running a Craigslist ad won’t cut it: it may never be seen by someone looking for what you have to offer!

 

  • How do you “show” land? Everyone knows what it means to show a house, and it’s the basic thing you do at the beginning of the selling process. But what about for land? Showing land is a lot less likely to cause a potential buyer to form an emotional connection with the property than if the property was a house, simply because it’s easier to imagine oneself living at the new place if the house actually exists!

 

  • Harder to motivate agents The simple fact is that any given piece of land would almost always be worth more if it had a house sitting on it. So, real estate agents will gain a smaller commission from selling your land than from selling properties nearby that have improvements. Now of course, most agents try to do their very best for their clients, but it would be difficult for anyone to completely fight off the disincentive of a smaller paycheck.

The internet is your best friend

It’s no secret that a ton of real estate business is done online, but how should you use this knowledge to quickly sell your land? Well, as we discussed earlier, the number of people actively looking to buy land is relatively small, so you need to get your property out to a wide audience. This is easy to do online, with free sites like Zillow and FSBO being great places to submit your property. However, there are also special investor portals online that let you put your property right in front of the eyes of people who actually buy and sell land for a living! These folks look at properties all the time and make their decisions about whether or not to buy based on specific criteria, so it’s best to provide them with as much information about your property as possible. Oftentimes you can get an investor to make you an offer site unseen. Now that’s how to sell land!

Where do you find these investor portals? You can search Google for terms like “sell land fast” and find plenty of land investors ready to take a look. Look for ones who offer to cover closing fees and pay you cash.

I hope this has been informative, and best of luck selling your property!