There is more to buying raw land, would have as at first sight and more than a few people, they would get a second chance in the search had been deceived, defrauded, misled, ill-advised, uninformed, oversold, uneducated and often unprepared. You are aware, often too late, that a raw land purchase should be properly investigated, evaluated and negotiated using a logical and rational plan.
Let me say, I am not starting a geologist, soil analyst, surveyor, engineer or landConsultant. I am a passionate real estate investor, licensed agent, evaluation assistant and landlord who purchased various raw lots, as big as a 15-acre property, investment and construction projects. In addition, I worked with numerous individuals competent in homes that have contributed to my general awareness of the conditions and benefits of undeveloped land, consulted. We, as small investors can further use this information to our advantage to choose wisely and use of land to ithighest and best use in meeting our needs, wants and desires.
This chapter is not a technical threshold and as such it will not go so far as to say how much lime to your soil is to adjust the pH value (7.0 neutral), but try to get you to think about some of the more general considerations that can lead you to explore your options further with this material as a starting point.
Thus said the first question I ask is, what exactly doThey intend to do with this country, if you have it? Why did you buy it? What is the purpose you have in mind to fulfill the country? Do you want to build a house, buy a lot for retirement or investment? Will you purchase large surface area for farming or subdivision? Do you want commercial, residential, recreational or agricultural? Will it be in the north, south, east or west?
So should be your first question, what I am, or we, for the purchase of this land? Does it want to meet me, or our, requirements? ToAnswers to these questions you are best served by talks with those who are intimately involved with the land, such as your spouse, partner, family members, associated owners, etc. If you have a clear idea of what the country should have served, are met, then you can begin your search. So often people donate their time and effort because the significant partners have such a big gap in what each person really wants to purchase that they never adjust to something, or at the endmuch less than they might have had.
Country can be said to consist of soil, geology, water and climate. Whether you are on the beach, mountains, deserts, plains, or the city a lot, they all have some basic components. Some of the basic requirements we most often seek are clean air, water, electricity, sanitation and garbage disposal.
Clean air could be interpreted by dusty roads, as freedom smog, foul smells from industry or landfills, free from noise on the roads, airportsand / or neighbors.
The availability of water is essential and is often desired for aesthetics as well as drinking, bathing, washing, cooking, cleaning, toilet and watering vegetation. We also enjoy lakes, rivers and streams for recreation. Others enjoy the tranquil sounds that our streams, rivers and oceans can provide. Without a doubt, the availability of water is an important concern. Note: A 1666 square meter roof can collect 1000 liters of water for every inch of rainfall; cisterns of all typeshave existed since the dawn of man.
Electricity is another necessity that we believe are often taken for granted. If a power plant within a reasonable distance from the country or it is connected you get thousands of dollars to run their own circuits to public lands to get your electricity? How far are gas and oil suppliers?
Sanitation - 25% of our country is on a well and septic system. If you do not have access to public utilities, your land support a septic system and theTo operate the water?
Solid waste disposal - how far is the landfill? Is there a collection service? You can not burn anything to get rid of as you?
These are the most important requirements for modern, everyday life ... Things that we really need, but often overlooked until after the signing of the contract. Other essentials are a telephone, mail delivery, shopping, police, fire, hospital / emergency services, schools, churches, recreational facilities and access by good roads andHighways.
They are answers to questions such as those above and county officials, such as planning and zoning want is community development and building departments, a good place to start to win. I would also call utility companies about water, sewage, electrical and telephone, and talk with neighbors, vendors, developers, brokers, experts and consultants on site, were some of the main issues dealt with at the beginning of my search. I do not want to be dependent on the vendorsknowing, either.
The planning and zoning departments can offer the following: maps used by others, projections of future development, lists of planned new roads, utility extensions, locations of planned waste disposal facilities, details on environmental areas and future land use. They also regulate building codes halt, halt-cut permits, preservation, housing codes, subdivision regulations, tree cutting and building regulations. They usually have aerial photographs and maps thatcan help you to better identify and evaluate the land in question.
Have you identified your location? If it is in the east where the weather is often wet and humid or out west, where it is predominantly dry and dry? Will you live in the cold season in the north or gravitating towards the southern hemisphere? In terms of location, what are you least comfortable with: Avalanches, landslides, earthquakes, floods, hurricanes, tornadoes, tsunamis, volcanic eruptions and / or forest fires? YouYou may want to investigate areas of interest by clicking on sites like http://www.officialcitysites. You get a better picture of what you expected it on the economy, environment, population, recreation, education, medical and employment opportunities to name a few.
Let's assume you know where you want to buy in this country, why do you want to buy it, and how and when to use it if you have it. The following general observations, ideas and information, you can help furtherInvestigation of alternatives that are available to you in your effort to find the land of your dreams.
Raw undeveloped land is owned, it has no utilities, sewers, streets or structures and usually must be cleared.
Here are (or can be) a few drawbacks that are sometimes associated with raw land:
1. The negative cash flow, usually the land does not generate income, while look out for the principle, interest, taxes and costs of development.
2. Tax advantages are scantyCountry can not be written off.
3. Generally, raw land is sick as a long-liquid investment that often first, before profits can be realized.
4. The risk of loss on resale can occur if you choose badly not to evaluate and negotiate fair to the economy slips or various other unforeseen events occur.
5. It is difficult to obtain traditional financing on or borrow against accrued equity.
Here are some possible benefits to raw land:
1. Country has theHave experienced enormous potential for enhancement, if purchased in the path of growth, or if a higher and better use can be achieved.
2. Owner financing can often be obtained by the seller at below-market interest rates.
3. Subdivision to create added value and for immediate returns.
4. Privacy and pride of ownership can give a secure feeling to the holder.
What is considered good and bad land?
The worst thing you can buy is swamp or bog. Land is mostly flatto develop the least expensive and the most desirable for the purposes of development. Land with barren rock will increase costs and virtually eliminate a basement just like a high water table.
Note: loamy soil, which consists of a balanced mixture of clay,
You will most likely be in touch with many of these sources by writing to them. You do not be discouraged if you do not receive responses, as the average response rate is an answer for every eight letters that you send. The pros areget on lists and pay services to
Monitor many of these potential sources is good old-fashioned detective work pays off. When researching in this manner, secrecy is a key and a quick action with all the cash is another.
Note is a particular emphasis on the hunting legally challenged property has a sand and some organic matter is rich and dark in color and is considered ideal for most purposes. On good ground over, you do not want hard cracking ground whendry and sticky soil when wet. Warning! Check with your state offices for the presence of expansive soils, the stuff cracks foundations in a very insidious way, what many into bankruptcy.
Many people are literally driven into the mountains. Granted, the views are spectacular but roads, power, water, sewer, and foundations such as piles, can be 25-30% on construction costs alone add further cost to this already expensive proposition. When considering going vertical, an 8-degree slope isacross the border, when the building economically on hillsides.
Plots with trees, a view, rectangular shape, a gentle incline, or not at all a good location is usually preferred, and streams can boost values by 100% in some cases.
How can the value of raw land
The evaluators give standard view of estimating value us some clues, please let us what evaluators do not look!
• Site size and shape, represented by facade, width andDepth.
• Corner influence equal visibility for commercial, residential or privacy.
• Plottage has assembly or combining of parcels have been carried out.
• How much land is excess or surplus, the surplus is worth less than what is required.
• Topography: Land's contour view, grading, natural drainage, soil, and benefits
• Utilities: sewer, water, gas, electricity, telephone, cable, etc.
• Site improvements: Landscaping, fences,Gutters, walks, drives and irrigation
Parking • Accessibility:, location, streets, alleys, roads and highways connecting
• Environment: Climate, adequate water supply, air quality, streams, rivers, lakes, oceans and the absence of hazardous substances
An old-timer once gave me the advice: He said: "Dan, always try to land so close to the amenities is an area famous to buy as these are often the reason people come to consider some areas. He lived inFlorida and had plenty of distance on a clear beach homes in tourist areas, from which its position.
Who has the raw land and how we find it?
You can start your search by contacting farmers, investors, brokers, state and federal agencies, cities with goods they need to cut back on the tax rolls, land management agencies, federal marshals, tax sales, bank foreclosures, developers share, property heirs, the elderly, families and friends. Use your networks andBirddog while driving areas of interest to buy on the lookout for other opportunities.
Property is often through newspaper advertisements, real estate, For Sale by Owner signs, flyers, bulletin boards, Internet, etc. A quick note, is not as advertised for sale, all right. I would not recommend to buy land, a big glossy brochure or business development, as it almost always overpriced to cover large overhead costs, advertising and profit. Do not forget, when a construction boom, landPrices are rising. You'll be much better if the demand is low. Another disadvantage is to stay away from land that has outside of its normal market as it is often overpriced or problems being advertised, otherwise it would have acquired a local buyer!
If you find your items, then it is very often they are going to have to dig for them. A few successful methods can also visit the County Clerk / Recorder 's office to the public records for the following search:
• New probate filings,to use to contact heirs
• Contact eviction proceedings from the state's landowners
• Arrests - these people may need money and may also be going away for a while.
• Deposit system that may be forfeited collateral in the form of land.
• Divorce filed, resulting in a division of property
• New guardianships Contact disinterested heirs
• deeds in lieu of foreclosure may, in turn, private sellers to sell it to you.
• pendens means litigationpending, often signaling foreclosure
• Title Company in addition to the regular search of mortgage.
• Tax and easement liens also check files for IRS liens, bankruptcy filings and judgment liens.
Quick review
Up to this point we have not cheated because of when starting talking. We have also found that it pays to understand what each of the country wants to start. You are aware that utilities and basic needs are quite substantial. You knowwho you contact to obtain further detailed information about the properties of interest. You know flat land with natural resources, the development of desirable and economically. They know the risks involved with this type of real estate, and you also know that can rock, marshes and hills to be expensive to develop. You have a better idea of how an expert and you can start identifying some ideas on how land and people who find it yourself.
With that said, we areready ourselves to the work of the evaluation, negotiation and financing our well-sought piece of terra firma. What follows is a basic checklist. We need to consider, but you will be out for a run.
Basic Raw Land Checklist
• Get the most recent and valid information available: A copy of the document with the legal description of all agreements and / or restrictions.
• Get the street address, a plot plan indicating the specific property location,Survey, a preliminary title report, an updated map and all air and land based photographs allow you to fence lines, trails, roads, streams, ponds, building locations, etc. Walk the land to verify, evaluate and correlate to what is specified, also on the lookout for signs of hazardous waste dumping, burying or burning.
• Determine present use in zoning, said according to what planning and zoning. Symbols are used to designate uses - here are a few:
A1: Agricultural with single --Detached
C: Commercial Business
CO: Commercial Office
FP: Floodplain
M: Industrial
R1: Residential single family
R1H: Residential hillside
R2: Residential Condominium
RT: Leisure Tourism / Residential transitional
General categories include:
Farm, Ranch and Timberland
Recreational or resort
Industrial
Commercial / Business
Residential
Mixed use
• Make sure who the ownerIt's full name, address and telephone number
• Find out what they do, they are from a dealer in real estate?
• Ask if anyone else has on the title or the authority to act
• What are the annual taxes and assessed values?
• Ask why they are selling and how long they are in their possession
• If the owner does not want to sell, ask if they would have to sell a package from him.
The preceding is an abbreviated checklist. It should get you started fromon the right foot. Many people will research buying a new car more thoroughly than they would when buying raw land, there are many good books that are exclusively devoted to the issue of uncultivated land. This type of investment is generally not build the best choice for the new investor but often people look at it from dream homes developed areas and that is why I included my two cents here.
Finance considerations $ $ $
Raw land as opposed to improved property is muchmore difficult to finance through traditional lenders. The main reasons are that it generates very little income, development costs can be expensive, there are no buildings or improvements that can be used as collateral and it is often seen as speculative.
For these reasons, we find mention that the sellers are often our first choice for financing. It is acceptable for a seller of raw land to the typical 10% down and pay the rest over time to a specified (below market price) rate.This would be an example of a land installment contract. Other forms are contract for deed, mortgage and note and purchase money mortgages. In these cases, a real estate attorney usually drafts these contracts and a bank as trustee to facilitate verifiable records of payments to be received for action. The seller often retains the deed to the property is paid in full.
If you want to investigate bank financing, then you can begin by 30% with a seven-year mortgage,with the Bank through additional percentage point over prevailing interest rates for standard loans. This can not be accepted, but it gives you a starting point to see what they would be willing to do can.
If you plan on building on your country, then assess a development that is used with a set of blueprints for the project will help the lender in the grounds of your loan. If you equity from other property, then paying substantial down payments may be a tooOption.
My final words of caution here would be to know values and do not overpay. Always offer less when possible and research recent sales of comparable properties. The larger a parcel is, the cheaper it tends to get per acre. Ask an agent to go, which plays an acre for the land in the area who are trying to draw you into account, to buy more than one hectare.
When buying residential lots, builders try to keep raw land costs up to 10% of the total value of the project. When roads andUtilities are already in place, then they are 25% of its use as a guideline. If you can combine or assemble parcels or achieve changes zoning to the property, you have a good chance of immediately increasing its value. To examine material, and you always do your research you undertake before they buy. Try to protect and share it with risks in contracts with themselves. In essence, these are really options that you control the business, while you can investigate and research the countryPotential to meet your goals. Happy Hunting and buy the heights!