Invest in Land

Is at least 30% of your wealth in LAND?

“The major fortunes in America have been made in LAND” John D Rockefeller

To become and to remain truly wealthy over the long run, land is now and always has been the very best vehicle.

"90% of all Millionaires became so through real estate. More money has been made through real estate than all industrial investment combined.” Andrew Carnegie

Buy LAND, they are not making it anymore.” Mark Twain

My job is to assist you in acquiring land so that you may become truly wealthy over the long run, for generations. Think about why they call it, “playing the stock market” it is a game and it is one that the average investor rarely wins in the long run.

Investors


* Vacant parcels in high growth areas-Lake Geneva, Door County, and others
* Limited Partnerships-own a percentage interest in larger development parcels
* Cash, leveraged purchases, and IRA Accounts
* Shorter term secured investments in land developments (3-5 year notes at 8-15%)
* Land purchase, enhancement, and management programs
* No obligation one hour individual or small group consultations
* Consulting for rezones, annexations, land divisions, enhancement, development

Investing in Lots and Land

Investing in land, particularly in high growth areas, can be a wise choice. But while there are great opportunities in land investments, be aware of some common pitfalls you may face and remember, if you cannot use a land investment as intended, it's no bargain. Don't rely on photographs and vague property descriptions. Walk every square foot of the land with an eye to potential problems:

* Topography - Heavily wooded land will require expensive tree removal. Steep grades may restrict building options and impact building costs. Hidden boulders may block your path.

* Lack of infrastructure - Are there hookups for utilities including water, sewer, electricity, gas, telephone, and cable?

* Environmental issues - It is worth the expense to hire a professional to look for evidence of toxic or non-toxic waste, old wells or septic systems, underground pipelines, a burial site, or flood plain. Any of these could sabotage future land development.

* Government restrictions - Zoning ordinances, covenant restrictions, and environmental regulations all impact land use.

Many of these pitfalls are not insurmountable, but others may be. It is wise to protect your investments by working with your real estate agent and include sufficient time for discovery of any pitfalls - generally 30 to 60 days - as a contingency in sales contracts.

Investing in land is significantly different from purchasing developed real estate. Some of the advantages of investing in lots and land include:

* Buying land is usually a bargain compared to buying developed real estate.

* Purchasing land offers flexibility for the buyer. Depending on area zoning, land can be used for multiple purposes.

* When you invest in land versus rental properties, you don’t have to devote time, money, and effort to the upkeep of property or attracting and keeping a steady stream of reliable renters.

* Returns on real estate investments in land can be significant if you do your homework and invest where the demand is high or will be high in the near future. For instance, appreciation is almost guaranteed when land is purchased on the outskirts of a city in the path of development and held until the city "builds out."

* The market for second homes and vacation homes is booming, and buying a lot or land is the first step to building a second home for investment, pleasure, or retirement. When new developments open, there are often good deals for early buyers who invest in lots before construction begins.

Drawbacks to Lot and Land Investments

Before you invest in land or lots, it is important to consider the potential pitfalls of buying land:

* Due diligence is critical to ensure that your land investment can be used for the purpose intended.

* If you purchase raw land with no improvements such as utility services, sewer lines, or paved roads, you may face unexpected expenses by having to install this infrastructure which, in turn, will increase construction preparation and undermine investor profit.

* Lot and land financing options are more limited than with developed property, and hefty down payments are usually required.

* Don't expect the same tax advantages on land as on developed real estate. Check with a financial advisor or qualified tax consultant prior to purchasing land for an accurate picture of tax implications.

It's always best to partner with a professional real estate broker/agent who specializes in selling lots and land to smooth the progresses of due diligence, negotiations, financing, and closing the deal.

Investing in Land for a Vacation Home

According to the National Association of Realtors, almost 40 percent of recent real estate purchases were second/vacation homes. Baby-boomers led the market, followed closely by younger generations who see the long-term value of buying land.

If you are in the market for vacation home property, take some time to think through what you want to accomplish:

* Think location first. Look for land in areas that meet your personal interests. Do you love the seashore? Skiing pristine slopes? The solitude of nature? A resort lifestyle with non-stop activities and amenities?

* Think time frame. If you want to build tomorrow your land choice may be very different than if you want to hold the land and possibly use increased equity as a down payment for future construction. Also consider construction contingencies. Some developments in popular vacation and second home markets require that construction begin within a certain period after the lot is purchased.

* Think distance. Travel time is important if you want a weekend retreat. It is impractical to spend a day traveling to and from your vacation home if you only have a day or two to stay when you arrive. Distance is also a factor during construction or when repairs and renovation are needed. The closer the land, the easier it is to handle the logistics of building.

* Think finances. How will you finance the land for your vacation home? Are you looking at the land for ultimate retirement or as an investment for future re-sale? Also, can you afford the expense of maintaining a second home in addition to your primary home? What about renting the vacation for part of the year as a source of income and to help cover expenses.

* Finally, think professional help! When buying a lot or land for a vacation home some distance away your current home, it makes sense to use the services of a real estate professional who knows the local market. This can speed your search for the best land and will streamline negotiations and closing.

Finding Lot and Land Investment Properties

There are several strategies for finding lots and land to buy.

* Some buyers look for "For Sale" signs on undeveloped land and buy directly from the seller.
* Some buyers scour the Internet for lots and land for sale. From online listings for sale by owner (FSBO) to online auction sites, the Web offers plenty of possibilities.
* Some buyers are successful at discovering attractive tracts of land not currently on the market, tracking down the owners, making offers, and closing the deals.
* And other investors purchase undesirable developed real estate on desirable land, scrap the property, and resell or redevelop the land.

Any of these strategies may yield positive results for experienced land investors. However, buyers beware. In all these cases, the entire responsibility for property research, negotiation, and closing lies with the buyer.

It is always advisable to enlist the expertise of professionals to ensure that there are no hidden barriers to land use, determine the feasibility of development or potential for re-sale, and accurately calculate total costs associated with the land purchase and development.

Research shows that most land investors save time, effort, and money by contacting a real estate professional who specializes in land sales. A Multiple Listing Service (MLS) (link to MLS advice) member real estate agent has resources to locate land that meets investor specifications and streamlines the entire purchase process.

What to look for in Lots and Land

The old real estate maxim "location, location, location" is a good starting point when you're looking for lots or land.

Consider your short-term and long-term goals as a prospective land purchaser. What kinds of zoning restrictions are there? Is this land you want to keep and hand down to your heirs - or are you seeking to turn a quick profit on the purchase?

How big is the parcel? Size determines property usage.

It's always a good idea when thinking of land investments to enlist the aid of a professional real estate agent who is a member of the Multiple Listing Service (MLS) (link to MLS advice). Then when you talk with your realtor, the more specific you are about your goals and requirements for land purchase, the easier it will be for him or her to tap the resources of the MLS for tracts of and that meet your needs at the best possible price.

Selling Land for a Profit

Market timing and land location play leading roles in the resale value of property. Even though the market is subject to demand, availability, and current economic climate, and you cannot relocate the land, you can take steps to protect and enhance the value of your investment.

* Stay tuned to long-range plans in the area where your land is located. When discussions about building moratoriums or re-zoning begin, it may be time to sell. Likewise, when talk of development and expansion surfaces in the area it also is probably a good time to sell.
* Especially if you are not nearby, a relationship with a broker/real estate agent who knows both the local market and your priorities can increase your odds for avoiding negative impacts and reaping the rewards of positive market changes.
* Make it easy for potential buyers: remove debris and spruce up your land by mowing and pruning. Mark boundaries so buyers can easily get an accurate picture of the property.
* Provide documentation. An original or updated survey, copies of covenants or other restrictions, and title insurance are helpful.
* Consider financing the transaction. Banks are sometimes hesitant to finance vacant property, especially raw land with no infrastructure. If you don't need immediate cash out of the deal, a reasonable down payment and monthly payments just below market interest levels can increase saleability and provide a stream of income.
* Protect yourself and gain maximum sales exposure by working with a real estate professional that specializes in lot and land investments and is a member of the Multiple Listing Service (MLS). (link to MLS advice) Through MLS you gain access to dozens or even hundreds of agents and their prospects. Additionally, your agent should also have a well-designed real estate web site. This makes your property available to a vastly larger number of prospects.

source:
http://www.gmacrealestate.com/
http://investinlandllc.com/