Question: I need to learn how to invest on raw land. Can anyone suggest good web sites or books?
Answer: I have actually developed a number of programs to help people learn how to buy and sell raw land. The best place to start is to download my free program at www.3fatallandbuyingmistakes.com. Read More
Question: I need a loan for school but dont have good enough credit to get a student loan. I have 3 acres of raw land, are there any lenders out there that will give me a loan using my land as collateral?
Answer: After the financial crisis in 2008, is now very difficult to use raw land as collateral for obtaining a loan. Nevertheless, there are many creative ways to sell property and use that money to finance your education. In fact, I even have a program that teaches people how to profitably buy and sell raw land and make amazing profits online. Learn more at www.artsofthelandflip.com. Read More
Question:
How do you sell raw land to mineral exploration companies or speculators? I don’t have the time, money, or resources to develop or do the exploration but the area is one of the most productive gold mining areas in the world.
Please note, I have not done any testing as yet myself. It’s strictly speculative. Sitting on raw land.What do I do?
Answer:
There’s so many variables involved, including front end money, back end royalty, etc. If you don’t own the mineral rights then there may already be a royalty in place. That in itself would change the scope of a sale to a mineral exploration company. It’s important to know what minerals the exploration company may be interested in as well. If it’s gold, it’s a different type of sell than another mineral.
Answer: No. Typically the County Assessor will value an improved land for residential use at a higher tax rate (as it’s more valuable) than raw land. Some developers work with the local county to reduce their tax rate by changing the property tax classification to Agricultural which has an even lower tax rate than residential. However, once you begin improving the raw land and begin getting permits with Planning & Zoning, the assessor will raise the tax rates on the property with the change in zoning. Therefore, depending upon your best and highest use for the property you will want to hold the land at the lower property tax classification to improve your return on investment.
Question: Is it feasible to believe you can buy properties in other states and sell them owner financed without even seeing them. I watched a webinar from larry goins today and he made it seem pretty simple. I know you can buy cheap property in places like Michigan but what do you with it? If nobody is there who do you sell and rent to? Some people talk about buying houses for $5,000 and renting them for $750 a month. Do people in these depressed areas really have that kind of money? Larrys program talks about buying these kinds of properties all over the country and selling them owner financed and making good money. This cant be as simple and easy as he makes it sound can it?
Answer: I’m not familiar with the Larry Goins program, but I have been acquiring land out-of-state doing my due diligence using Google Earth, www.homeinfomax.com and then use an inexpensive crowd sourcing site named www.wegolook.com to take pictures and provide me a report. This saves me so much time and money performing due diligence and helps me sleep at night knowing the land has been investigated properly.
Question:
Hey guys,
I was wondering if there is a passive investing guide out there for rentals. I have not found a solid guide on BP on how to invest passively if you simply cannot make weekly or monthly trips to rentals unless in times of extreme emergencies. A few reasons might be:
1. personal preference.
2. Job requires frequent travel
3. Job requires 70-90 hrs/week
What are the most important steps to passive investing? Selecting a property management company that tries to keep costs down? A friendly realtor to lease your house when there is turn over?
Answer: If you like the idea of passive income without any tenants, termites or toilets breaking in the middle of the night, then you should think about investing in raw land. With raw land of there are no maintenance headaches and the pressure to keep the tenant happy. Plus, there is less capital involved with structuring land deals. What I like to do is acquire 5 – 40 acre parcels from a distressed owner, sell that property on a land contract and a promissory note and collect the monthly payments. In this way, I have monthly passive income, plus I don’t have to incur the expense of foreclosure should my owner fail to make their payments. Simply rinse and repeat.
Question: Can anybody share how they are investing passively? Do you invest with a syndication or buy the property yourself and put a property manager in place?
Answer: If you like the idea of passive income without any tenants, termites or toilets breaking in the middle of the night, then you should think about investing in raw land. What I like to do is acquire 5 – 40 acre parcels from a distressed owner, sell that property on a land contract and a promissory note and collect the monthly payments. In this way, I have monthly passive income, plus I don’t have to incur the expense of foreclosure should my owner fail to make their payments. Simply rinse and repeat. I’ve been creating land notes since 2007 and there’s no better feeling than waking up and seeing those payments hit my account. There are a number of 3rd parties that will manage the paperwork, and collect the payments charging a small fee. They will then provide your customer with a 1098 so they can deduct the interest expense from their tax return.
I’ve been getting a lot of questions lately about specific issues regarding to land. I thought I would share so everyone could benefit.
QUESTION:
I had someone contact me about selling his land. It’s 1 Acre and it has an old abandoned Mobile home on it. It’s been abandoned about 8 months. The land can be used for commerical or residential. He inherited the land and wants to get rid of it. He said he wants 38k for it. Is it possible to wholesale land. And how exactly do you run the comps for it. I ran the comps for the area and homes in that area sell between 90-190K.
ANSWER:
I would contact the local County assessor and 1st ask what the assessed value for that land is valued at, then I would ask for the comparable sales for the last 90 days. You can also go online and for a few bucks get information at www.homeinfoMax.com, that will provide you with the comparable sales.
I’ve been getting a lot of questions lately about specific issues regarding to land. I thought I would share so everyone could benefit.
QUESTION:
Hello everyone,
I am planning on purchasing a couple of plots of lands.
In the future, I will either sell off as the area develops or develop myself for leisure.
For one of these lots, I am planning on using the owner-financing that they are offering.
Here is my very newbie questions:
Who would write out this agreement?
How do I make sure the land belongs to me as long as I make payments?
I know these are some very basic questions but with such a small cost on the plots, it seems silly to involve an agent. I just dont know anything about purchasing real estate yet.
Answer: Great question. Typically, the seller will have you sign a promissory note, purchase sale agreement and either a land contract or a deed of trust (which they provide). With a land contract, you have to insist that they record it with the County so there is a record that as long as you are making payments you own the property. A deed of trust, places a lien on the property, but your seller transfers ownership into your name which gives you the assurances that while you are making payments, the property is in your name and recorded with the county. Once you pay off your note, the seller removes the lien on the property. Also, I would advise that within the agreement, the seller guarantees the property is free and clear of all liens and encumbrances. Plus, at the end of your payment term they will pay for your title insurance in your name.
I’ve been getting a lot of questions lately about specific issues regarding to land. I thought I would share so everyone could benefit.
Question:
I’m new for land investment and would like to start bidding land online. Has anyone had this experience and is it worthy to invest in land? I’m in California and wondering does it make sense to invest land in other states.
Answer:
Hi. I started investing online with land since 2001. I love investing in land simply because it’s an asset that I don’t have to actively maintain. With a house or other type of structure, you have to deal with ongoing maintenance and a tenant. Plus, unlike everything else in life land is the only thing that lasts. My advice to you would be to start investing in your own backyard. Whether you realize it or not, you are the local expert. If you start investing other states, you will be competing against the local experts and that’s much more risk than I’d like to see anyone take when when investing. In fact, I created a free ebook at www.3fatallandbuyingmistakes.com to help newbie land investors get started and avoid making mistakes. Buying land outside of areas they are familiar with is one of the classic mistakes.
