Archive for November, 2013

Where to Find Acreage for Sale?

Twenty-five years ago, major newspapers throughout the United States carried quite a few advertisements regarding acreage for sale—a term generally used to describe large tracts of land. Today, it is becoming more and more difficult to find large tracts of land for sale, especially cheap acreage.

For investment purposes, large tracts of rural land are often overlooked in favor of the stock market. This is unfortunate, because low-priced land has outperformed the stock market over the last 40 years. Today, the Dow Jones is approximately 11,000, about 13 times the 1970 level of 838. In 1970, newspapers in Texas, Wyoming, South Dakota, New Mexico and Nevada carried many advertisements regarding acreage for sale at $15 per acre. Today, it is rare to see classified ads in these same newspapers offering land for less than $350 per acre, about 23 times the 1970 price. Perhaps more important is the fact that many Wall Street stocks of 40 years ago went out of business and no longer exist, while every single acre of land that existed in 1970 is still here today and is worth substantially more money.

The wonderful thing about land is that it is a finite supply, and it can’t be reproduced, manufactured or created. Today, the population of the United States is around 300 million, and by the year 2050 the population is projected to increase to more than 400 million. Yet not one new acre of land will have been created.

The other amazing thing about land is that no one can predict—with absolute certainty—what the future will bring as to values or what new uses will be discovered. For instance, 75 years ago who would have imagined that wind farm developments, solar energy projects and communication towers would create substantial cash flow for rural land owners?  What kinds of opportunities might materialize in the future?

People should keep their eyes open for good deals in acreage for sale. It is an exciting asset to own, is certain to be here in the future and can lead to unforeseeable uses and future profits.

To view properties for sale, CLICK HERE

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Buying Land from Private Owners Offers Substantial Benefits

Land for sale by owner can offer substantial benefits for buyers, such as lower prices, smaller down payments, elimination of real estate commissions, shorter documentation, guaranteed financing, and no credit checks. When real estate is sold by a commercial brokerage firm and the financing arranged by large financial institutions, the transaction is usually more costly, time- consuming and complicated. On the other hand, private transactions between sellers and buyers can often result in a simple contract, with the transaction closing in a few days with little cost.

Both seller and buyer stand to benefit in private transactions. The seller benefits because the real estate commission is eliminated, and further, the seller can collect the substantial interest paid through the years instead of the lending institution. The buyer can benefit because the seller is providing financing, resulting in a much smaller down payment and the elimination of credit checks. Often this type of sale will utilize a contract for deed, also commonly referred to as a land sales agreement.

When using contracts for deed the following precautions should be considered for the protection of both seller and buyer.

  1. The seller should provide a copy of the deed as evidence of ownership, and/or the buyer should check county records to verify that the seller does in fact own the land and has the right to sell it.
  2. The buyer might want to request that the land sales agreement is recorded. In this case, however, sellers almost universally require a quitclaim deed to be signed by the buyer and held in escrow, to be used only in the event of a default on the part of the buyer.
  3. Both seller and buyer might want to order and review a short form of title search disclosing all matters currently of record affecting the property.

It is more common to see land for sale by owner in rural areas of the United States than it is in the big cities. Regardless, some tremendous land investment opportunities can materialize when the seller carries the note and provides the financing.

To view land for sale by owner CLICK HERE

Disclaimer: The information regarding land sales agreements is not intended as legal advice and readers should consult with their own attorney regarding any such transactions.

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The Benefits of Buying Large Acreage

If you are a land speculator or investor looking to purchase property, and you findlarge acreage for sale, you have arrived at the starting point for excellent profitability. The “Law of Per-Acre Pricing” needs to be thoroughly studied and understood. Basically this law states that the larger a tract of land is, the lower the per-acre price will be—and the smaller a tract of land is, the higher the per-acre price will be. Therefore large tracts of land will offer the best opportunity to acquire land at the lowest per-acre price.

Let’s review an example of how this might work.

A rancher sells 20,000 acres to a land speculator for $100 per acre. The land speculator sells four 5,000-acre tracts to other buyers for $150 per acre. One of these 5,000 acre buyers sells off 1,920 acres to another speculator for $200 per acre. This new owner then parcels the 1,920 acres into three sections of 640 acres each for sale at $300 per acre. One of these buyers then subdivides his 640 acres into sixteen 40-acre tracts for resale at $750 per acre.

As can be seen above, the 40 acres for $750 per acre is the very same 40 acres that was part of the original 20,000 acres that sold for only $100 per acre. No improvements were made to the 40-acre tract, and it is still the very same unimproved land it was when it was part of the 20,000 acres. The only difference is that it is now being sold as 40 acres, not 20,000 acres. Thus, the “Law of Per-Acre Pricing” is in full effect.

Another example would be the Alaska Purchase. The United States acquired these 375 million acres for a little over two cents per acre in 1867. Now, immediately after this purchase, does anyone believe that the United States government would have resold a 40-acre lot to a homesteader for 80 cents, or two cents per acre?

So if a person can afford it, it is always better to acquire large acreage for sale as opposed to acquiring small acreage for sale.

To view properties for sale, CLICK HERE

Secrets to Investing in Cheap Raw Land

One of the secrets to investing in cheap raw land is to ignore the old real estate axiom of “location, location and location,” and instead focus on “price, price and price.” There are countless examples of people buying the best located land, yet losing money due to bad timing, zoning issues, economical downturns or political obstructions. On the other hand, history has proven that it’s virtually impossible to lose money owning large tracts of cheap raw land, if purchased cheaply enough and held long enough.

Cheap raw land is a safe and profitable asset to own over a long period of time. It is safe because it can be stolen, can’t be outdated by technology, can’t be destroyed, and most important of all, no new land can be made. In other words, it is a finite asset in a nation with an ever-increasing population and an ever-increasing supply of new paper money

Cheap raw land is profitable to own, as evidenced in a comparison with the stock market.  In 1935 the Dow Jones was just under 150, and today it is around 11,000, or 74 times higher than it was in 1935. In 1935 cheap raw land was plentiful in the Western states for prices around $2.50 per acre. Today it is difficult to find cheap raw land for sale anywhere in the United States for under $275 per acre, or 110 times higher than it was in 1935.

How did the value of cash money hold up compared to cheap raw land, over the same period of time?  According to the Bureau of Labor Statistics, it would take $16,000 in 2010 to pay for the same goods and services that $1,000 purchased in 1935. Thus, inflation robbed the dollar of 94% of its buying power since 1935. This compares to cheap raw land today being worth 110 times more than it was in 1935.

There are various business ventures – hedge fund activities, currency trading, stock options, commodity speculations, etc – where large sums of fast money can be made. But these activities require specialized knowledge and substantial sums of capital, and even then millions of dollars can be lost overnight. There are no guarantees of success in these ventures.

On the other hand, there is a 100% guarantee that cheap raw land will still be here in the future, and will be worth more money than it is today!

To view cheap raw land for sale CLICK HERE

Remote Land for Sale at a Reasonable Price

The big advantage of remote land for sale is that it is usually very reasonably priced. Land like this will be located in rural areas and will be raw and undeveloped, without any utilities or maintained roads. If the land is used for anything, it most likely would be for grazing livestock.

Usually, these properties will be very reasonably priced and can offer exceptional real estate investment opportunities. Prices will normally be quoted on a per-acre basis as opposed to the square footage basis utilized by city real estate brokers. Low-priced rural properties can be found for under $500 per acre, while big city real estate quoted on a square footage basis can translate into prices of $10,000 to over $1 million per acre.

It is usually easier and faster to buy land for $400 per acre and resell it for $800 per acre, than it is to buy land for $10,890 per acre (25 cents per square foot) and resell it for $21,780 per acre (50 cents per square foot). The exception to this rule might be high-risks, time-consuming and capital-extensive city developments. In these cases, more than one developer has suffered financial devastation due to bad timing and a downturn in the economy.

Some of the best states to find good deals in remote land for sale would be Texas, Oklahoma, South Dakota, Wyoming and Nevada. Finding land for sale anywhere in the United States for under $500 per acre is becoming more and more difficult. Not too many years in the future, land for sale under $500 per acre will cease to exist.

To view remote land for sale at excellent prices, please click here.

Understanding the Long-term Benefits of Investing in Land

Individuals who have purchased cheap acres for sale have realized the value of the asset and understand the long-term benefits. So why don’t more people invest in cheap land? Most people simply do not understand how easy it is. Sure, the initial cost can be intimidating, but when land is priced at less than $299 per acre, the value becomes a bit more obvious.

Imagine the feeling of owning 160 acres of undeveloped wilderness. Despite the fact that it is raw land, it is probably unwise to attempt any sort of development. Many of the cheap land parcels sold are not easily accessible and there are no utilities available. Though raw and undeveloped, cheap land still holds a strong appeal as inflation will increase the value right along with the most expensive property in the United States. As long as the land is purchased cheaply enough and held long enough, it is almost impossible to lose money owning such an asset.

A large tract of cheap land is always a smart asset to own. They aren’t making any more land, and inflation is forever causing the value to increase through the years. Pride of ownership with land far exceeds the pride of ownership with stocks and bonds. Everyone seems to want to own their own piece of the “Old West.”

One of the best parts of owning cheap land is that it is a very simple, trouble-free asset. The land will always take care of itself, since there are no buildings or improvements requiring expensive upkeep. Individuals who have stumbled across cheap acres for sale should consider purchasing it.

To view acres for sale, please click here.

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Land for Sale - Investing in Real Estate

With the housing market as unpredictable as it is, you never can be sure that an investment property will pay off as well as you’d hoped. A better and more profitable option might be finding and buying low price land for sale.

There are thousands of acres of land for sale all over the United States and there is never a bad time to make an investment. Low price land is one of the easiest and most economically sound investments you can make. All it takes is the initial expense. There is no maintenance to be done, no up-keep, and no hassle. And you can be sure that interest rates and inflation will only benefit you for as long as you own your property. The longer you hold on to it, the more profitable it can be.

The best land prices are often in the vast and remote expanses of untouched rural land. Areas like Texas, Oklahoma, Wyoming and South Dakota have an abundance of land for sale at low prices. This is the kind of land that isn’t irrigated or developed. However, it is still valuable and affordable, and its value will only increase over time.

And although the properties may be rugged and harsh, that’s not to say that they’re not in demand. Fifty years ago such properties were solely utilized for cattle grazing. But today, many alternate uses for these properties are being discovered, such as wind farms, solar development, cell tower leases, hunting camps, sand and gravel sources, and recreational purposes.

If you’re considering an investment in real estate, broaden your horizons and focus on low price land for sale. Why buy one small, expensive plot that’s susceptible to market fluctuation, when you can invest in a wealth of land at a lower price?

To view low price land for sale, please click here.

Why it is Better to Buy Cheap Land Instead of the Investing in Stock Market

The stock market can be very risky. Income properties can become vacant. Homes can decrease in value. Inflation chips away at the buying power of cash. Commodities can be outright treacherous, and gold can be confiscated by the government (as happened under President Franklin D. Roosevelt). Since the founding of the United States in 1776, however, buying cheap land and holding it long enough has always proven to be profitable.

There are many approaches to the land investment business—ranging from large-scale commercial developments with many moving parts to simple long-term investments—based solely on price.

An example of the first would be the Newport Beach, California, developer who acquired 23.5 acres just off the Las Vegas Beltway in 2007 for a price of $30.2 million. A large commercial development was planned, but instead the property went into foreclosure and was repossessed by the bank. The bank resold the 23.5 acres in 2011 to a group based in New York for only $4.4 million. Sadly, the California developer lost over $25 million in just four short years.

Conversely, for the same $30 million in 2007, he could have acquired 120,000 acres ($250/acre) in the middle of “nowhere” in some Western state like Wyoming, South Dakota, or Texas. Today, in 2011, even considering the economic recession, the 120,000 acres would probably be worth between $36 million ($300/acre) and $40 million ($333/acre). And 20 years from now, it could be worth $90 million to $120 million ($750/acre to $1,000/acre)—all with no effort or expensive development plans at all, just sitting and waiting!

When an investor acquires expensive urban land, success usually relies on many moving parts such as zoning, entitlements, financing, the state of the economy, and so on. In other words, there are many “land mines” that have to be side stepped before a payday is realized, and this type of land investment is violating one of the oldest rules—namely; never place your money where others can vote on it.

Buying cheap land, with the main consideration simply being price, is an entirely different matter. Why? Because an investment like this doesn’t rely on population growth, zoning, or development. The future value of a large tract of low-priced acreage is determined chiefly by the passage of time and inflation—both of which are inevitable!

Click here for opportunities in buying cheap land

Land For Cheap in the United States

Most of us assume that land increases in value only if it is situated in the path of growth, if there is some future development potential, or if the land has a profitable usage. Sophisticated buyers will employ real estate appraisers, investment analysts, and land planning professionals to help ferret out properties with the best potential. But what if someone took a contrarian approach and simply acquired the cheapest land available in the United States, regardless of location—with the only requirement being a low price?

Let’s review just one historical comparison and see.

In 1986, a developer who employed appraisers, investment analysts, and professional land planners, purchased thousands of acres just west of Phoenix, Arizona, and envisioned a master planned community of 300,000 people. An $82 million bond was floated to pay for the infra-structure, and a London-based company invested millions of dollars more in the planned development.

By 1988, the savings and loan crises had arrived, a national real estate recession was beginning, and land values tanked. In 1989, the planned development went into foreclosure, resulting in the loss of millions of dollars.

In 1986, a person could have purchased thousands of acres all over West Texas, Wyoming and South Dakota for $35 per acre or less. When the savings and loan crises hit in 1988, rural land like this wasn’t affected at all, and prices remained stable. Today, this same land in West Texas, Wyoming and South Dakota, still unimproved and without utilities or maintained roads, will sell for around $350 per acre.

Emotionally, it is very hard for people to understand that just buying and holding land will usually return the biggest profits over the years. It is human nature to want to “improve” their land and to try to find “uses” for their land. These “improvements” and “uses” often result in much larger “carrying expenses” than by doing nothing, and just waiting.

The beautiful thing about buying the cheapest land available is that it can’t go down very far in value, and historically it always rises in value through the years! It is kind of like a “can’t lose” proposition! Put another way, it is a lazy man’s way of increasing assets with very little risk.

To view properties for sale CLICK HERE

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Inexpensive Acreage for Sale in America

Twenty-five years ago, major newspapers throughout the United States carried quite a few advertisements regarding acreage for sale—a term generally used to describe large tracts of land. Today, it is becoming more and more difficult to find large tracts of land for sale, especially cheap acreage.

For investment purposes, large tracts of rural land are often overlooked in favor of the stock market. This is unfortunate, because low-priced land has outperformed the stock market over the last 40 years. Today, the Dow Jones is approximately 11,000, about 13 times the 1970 level of 838. In 1970, newspapers in Texas, Wyoming, South Dakota, New Mexico and Nevada carried many advertisements regarding acreage for sale at $15 per acre. Today, it is rare to see classified ads in these same newspapers offering land for less than $350 per acre, about 23 times the 1970 price. Perhaps more important is the fact that many Wall Street stocks of 40 years ago went out of business and no longer exist, while every single acre of land that existed in 1970 is still here today and is worth substantially more money.

The wonderful thing about land is that it is a finite supply, and it can’t be reproduced, manufactured or created. Today, the population of the United States is around 300 million, and by the year 2050 the population is projected to increase to more than 400 million. Yet not one new acre of land will have been created

The other amazing thing about land is that no one can predict—with absolute certainty—what the future will bring as to values or what new uses will be discovered. For instance, 75 years ago who would have imagined that wind farm developments, solar energy projects and communication towers would create substantial cash flow for rural land owners?  What kinds of opportunities might materialize in the future?

People should keep their eyes open for good deals in acreage for sale. It is an exciting asset to own, is certain to be here in the future and can lead to unforeseeable uses and future profits.

To view properties for sale, CLICK HERE

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