Archive for December, 2013

What is the Price for Really Cheap Land

What price would be considered as “really cheap land” in the United States of America? That price would be under $200 per acre. The United States contains approximately 2.2 billion acres (3,500,000 square miles), and probably less than 1/50th of 1% of this land, or around 500,000 acres, could be purchased today for that price.

Twenty-five years ago, there were millions of acres available for sale in all of the Western states for under $200 per acre. Land for such prices is shrinking fast and rapidly becoming unavailable. This is another subtle and underlying evidence of what inflation is doing to land prices.

There are 46 out of the 50 states where it is probably impossible to find land anymore for under $200 per acre. Wyoming, Texas, Nevada, and New Mexico are the only states where land can still be found for that price. If another caveat is added—states where subdivision laws allow the easy parceling of large tracts into smaller sizes for resale—then only Wyoming and Texas would qualify.

If anyone doubts the above facts, then following would be a simple method of verification.

  • Google “land for sale under $200 per acre” (then separate all the misleading ads for “$200 per month payments,” “$200 down payments”—and see what is actually for salefor under $200 per acre).
  • Check classified ads in newspapers (both major newspapers and small weekly newspapers) all over the Western states and see if you can find any land for sale under $200 per acre.
  • Phone real estate brokers throughout the Western states and tell then you want to buy land anywhere for under $200 per acre—You probably won’t have any of these brokers phoning you back.

If you can find and purchase some really cheap land anywhere in the United States, then hold it long enough, history has proven it would virtually be impossible to lose money on such a transaction.

To view some really cheap land for sale, click here.

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Land Prices Per Acre

Land can be priced many ways: by the lot, by the square foot, by the parcel or by the acre. The pros, however, the old-time speculators and investors who’ve made millions of dollars dealing in cheap rural acreage, are only interested in land prices per acre.

Land sales companies, however, use many ways to hide and camouflage the per-acre price from the public. Sadly, even the largest and most reputable companies engage in this subtle form of deception.

One way is to advertise a 10,000-acre ranch for only $1 million. The unsophisticated buyer would assume that the price is an astonishing $100 per acre. Yet after delving into the facts more deeply, the real estate broker casually mentions that there are only 500 deeded acres, with the other 9,500 acres being state or federal leases. Thus the real per-acre price is $2,000.

Another widespread method, used by many Internet land sellers, is to advertise a lot for “only” $2,995, and state that it is one of the cheapest land deals available. But when it is discovered that the lot size is only one-acre, then the price is really $2,995 per acre—and that isn’t a cheap land price. A cheap per-parcel price can be an illusion, while a cheap per-acre price is where real value can be found.

The same principal applies to a nightclub serving alcohol. The nightclub buys whiskey by the gallon and sells it by the small glass—a very profitable formula. The same basic formula applies when dealing in rural real estate. A person should always concentrate on land prices per acre. In other words, buy large tracts by the acre, and sell small lots by the parcel.

Click here to view cheap land prices per acre.

Cheapest Land in the World is in the United States

The cheapest land in the United States is generally around $200 per acre, yet land can be found in some countries priced as low as $20 per acre. So if a real estate investor were interested in acquiring a large tract of the cheapest land in the world for future investment purposes, which country in the world would offer the best potential?

The answer, without doubt, would still be the United States of America for the following reasons:

  1. Government Stability—The United States has one of the most stable governments in the world, and property rights are protected by the U.S. Constitution.
  2. Currency—Buying land in the United States with U.S. dollars eliminates the problem of converting profits from foreign real estate transactions into U.S. dollars.
  3. Title Insurance—There are dozens of title companies in the United States that issue policies insuring the buyer’s title to the land. In many foreign countries it is difficult, if not impossible, to secure reliable title coverage.
  4. Squatter Rights—Unlike many third-world countries, the U.S. courts do not recognize property rights for “squatters” who occupy land without obtaining legal ownership.
  5. Transferability—It is fast, easy, and inexpensive to transfer ownership of land in the United States. In some countries—Argentina being a prime example—there can be time delays of several years while the government investigates and approves (or denies) the transfer of ownership of land located near coastlines or national borders.
  6. Economy—The United States is still, far and away, the world’s largest and most vibrant economy.
  7. Worldwide Demand—Historically, there always has been a demand for land in the United States, and worldwide investors have purchased with safety and confidence.

A large tract of land acquired in the United States for $200 per acre undoubtedly offers a far greater future potential than does a large tract of land acquired for $20 per acre in a third-world country. All things considered, the cheapest land in the world is located right here in the United States of America!

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Cheap Acreage, a Good Investment

The term “cheap acreage” generally means land that can be acquired for under $500 per acre. This applies to a very tiny percentage of all the land for sale today in the United States. As inflation increases with massive government spending over the next few years, cheap acreage under $500 per acre will soon be a thing of the past. While the federal government can crank up the printing presses and create more paper money, it is impossible to create more land. Thus, there will be an ever-increasing amount of paper money chasing the same finite supply of land which is a formula destined to cause higher land prices in the future.

Some people might ask what cheap acreage can be used for other than grazing cows, hunting, camping, recreational purposes or long term investment. Following are just two examples to consider.

The Imperial Valley Venture

In the years between 1901 and 1907 the California Development Corporation attempted to build a water canal from the Colorado River westward into California’s Imperial Valley. The purpose was to provide a source of irrigation and turn the dry, desolate and uninhabitable area into a subdivision of lush farms.

Initially started by private promoters the project was eventually taken over by the Southern Pacific Railroad, with federal support promised by President Teddy Roosevelt. The United States Government owned most of the region and was offering cheap acreage for sale at $1.25 per acre.  The project failed after thousands of acres were sold and millions of dollars lost, and in 1909, the California Development Corporation was liquidated

So what happened during the last 100 years regarding prices for this cheap acreage? Much of the land is still dry, desolate and uninhabitable, yet it is very difficult today to find land anywhere in the Imperial Valley for less than $1,000 per acre.

The Rio Rancho Story

A more recent example of cheap acreage would be the city of Rio Rancho, New Mexico. In the 1960s, AMREP Corporation purchased 55,000 acres of cheap grazing land located north of Albuquerque for just a few hundred dollars per acre. AMREP began subdividing the land into residential, commercial and industrial parcels and initiated an aggressive nationwide sales program.

In the 1970s, the federal government indicted the top management of AMREP for, among other things, fraudulent activities, because they touted the land as a good investment. Several key executives were convicted and actually served jail time. In 1981, Intel built a $50 million manufacturing plant in Rio Rancho that created a large employment base. In the ensuing years, thousands of people moved to Rio Rancho.

The initial representations made by AMREP that the land was a good investment proved to be true: the 55,000 acres purchased for just a few hundred dollars per acre and resold to the public is now worth many millions of dollars and is basically a suburb of Albuquerque.

The Moral:

History has proven that it’s virtually impossible to lose money owning cheap acreage if it is purchase cheap enough and held long enough!

To view cheap acreage CLICK HERE

How to Buy Land Foreclosures

Foreclosures occur when a property owner is unable to maintain the monthly payments, and the lender forecloses and takes the property back. The one big advantage a lender has regarding land foreclosures, as opposed to residential foreclosures, is that no renovation expenses are needed. A home can be damaged, requiring large expenditures to prepare it for resale, while very little can be done to raw land.

Knowledgeable real estate investors have a strong interest in foreclosures because of the potential for immediate equity gain. Foreclosures usually involve a situation whereby an owner bought the property with a down payment, made monthly payments on the note, and thereafter lost the property due to inability to continue making the payments.

Because foreclosures often are the result of the owners’ financial problems, and have nothing to do with the property itself, a meaningful equity might exist. In other words, the property could be worth far more than the balance of money owed. As an example, if an owner is unable to sustain payments on the lender’s note in the amount of $75,000, and the property is worth $150,000—then the equity is $75,000.

For investors dealing in foreclosures, the key is to acquire the property for the balance owed on the loan, not for the market value. Using the example above, if an investor acquired the property by assuming the $75,000 note, then the equity would be an immediate $75,000. Consequently, if the investor paid the lender the market value of $150,000, then there would be no immediate equity.

Obviously, for anyone dealing in land foreclosures, the price being paid is of critical importance. Acquiring foreclosures and receiving immediate equity is a good deal. Acquiringforeclosures and receiving no equity is not nearly as good a deal.

To view properties for sale, CLICK HERE

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Cheap Acres For Sale

It would be quite difficult for a person of average financial means to purchase expensive acres, costing thousands of dollars per acre, and requiring all cash. On the other hand, it would be relatively easy to purchase cheap acres for a few hundred dollars per acre, utilizing easy seller financing. There is a big difference between purchasing 80 expensive acres for $1.2 million cash ($15,000 per acre) – or purchasing 80 cheap acres for $36,000 ($450 per acre) requiring only $1,000 down and monthly payments of just $350.

The United States of America was, from its inception, a large speculation seeking cheap acres and other riches. It was a speculation for Christopher Columbus, for the kings of Spain, France and England, and for the early colonists.

Speculating in cheap acres was big business in early colonial America. Two important objectives of the first 13 states were the settlement and cultivation of good lands, and the establishment of commerce. In the early part of the 1800s, however, there were far more fortunes created by acquiring cheap acres than by engaging in commerce or starting businesses.

George Washington, himself, before he entered politics, was one of the most active speculators in cheap acres. Washington, even while President, purchased 3,000 acres in the Mohawk Valley, located in the State of New York with money borrowed from George Clinton. Clinton was the first governor of New York and the fourth Vice President of the United States. Subsequently, Washington sold about two-thirds of the property at a profit and repaid the loan. He also bought lots in the newly created City of Washington.

By the time Washington’s two terms as president were up in 1797, he was a very wealthy man as the result of his years of dealing in cheap acres.

There are still wonderful opportunities to make substantial sums of money buying cheap acres. Obviously prices are much higher today than in Washington’s time, but there is also a much bigger market for cheap acres today. Prices are all relative to the times, but the opportunity remains!

To view cheap acresCLICK HERE


How and Where to Find Cheap Land

What is cheap land?

Cheap land is not cheap per-parcel; rather it is cheap per-acre. A small quarter-acre lot picked up at a tax sale for $995 is not really cheap land. The price per-parcel is cheap, at $995, but the price per-acre is $3,980. To find cheap land, you must find a cheap per-acre price. For instance, 643 acres for $118,955 is a much more expensive per-parcel price, but the per-acre price is very cheap at only $185.

Where can you find cheap land?

Land that is truly cheap — land that is priced under $250 per acre – is close to becoming extinct in the United States. The few tracts of land for sale today at this price are found mainly in Texas, Wyoming, South Dakota, Nevada and New Mexico. And this price will normally only be available on tracts of 10,000 acre sizes or larger.

How can you find cheap land?

The best ways to find cheap land are checking advertisements in small newspapers in rural areas of these states; talking with real estate brokers who specialize in large tracts of land; and searching the Internet.

What good is cheap land?

If you find cheap land, you have found one of the few assets known to man that can’t be stolen, destroyed, outdated by new technology or reproduced – and in future years, it is guaranteed to still be here and to be worth more money than it is today. So the answer is that cheap land is a very reliable asset to hold for the long-term — and in the meantime, it can be used and enjoyed.
To find cheap landCLICK HERE.

Acquiring Cheap Land in the USA

Cheap land can be found in countries like Mexico, Brazil, Argentina or Indonesia for around $25 per acre, while you won’t find cheap land USA for much under $200 per acre. So if a person were interested in acquiring a large tract of cheap land for future speculation, which country in the world would offer the best potential?

Without a doubt, cheap land USA would offer the best potential for the following reasons.

  • Property rights in the United States are guaranteed by the U. S. Constitution, while property rights in other countries could disappear with a new regime.
  • Insurance companies in the United States will insure a buyer’s ownership of real estate, while in many foreign countries, dependable title insurance simply isn’t available.
  • In most Latin American countries, “squatter rights” are recognized – which means title to the land can be compromised because someone is living on the land without ever having established legal ownership or occupancy. The U. S. courts do not recognize property rights for “squatters.”
  • When a person buys cheap land USA, they use the U. S. dollar; therefore, the problem and risks associated with converting profits realized in a foreign currency are eliminated.
  • It is fast, easy and inexpensive to transfer ownership of cheap land USA to another buyer. In some countries, Argentina for example, there can be delays of a year or more while the government investigates and approves (or denies) the transfer of ownership for properties near coastlines or national borders.
  • The United States has the strongest economy in the world, and the government is stable. Historically, there has always been a strong demand for cheap land USA, and worldwide investors have purchased with safety and confidence.

Acquiring cheap land USA today, with inevitable inflation and ongoing population expansion, might be one of the safest and surest methods of increasing assets in future years.

To view cheap land USA for sale, CLICK HERE

Finding the Cheapest Land for Sale in the United States

For astute land buyers it is the per-acre price that is important, not the per-parcel price. For example a 160-acre tract for $31,840 is far cheaper that a one-acre lot for $4,000. Why? Because the 160-acre tract is priced at only $199 per-acre and the one-acre lot is priced at $4,000 per-acre. Since the Pilgrims landed in 1620 and Americans began migrating west, land dealers have made fortunes buying land by the acre and selling lots by the parcel!

The term “cheap” land is relative in nature, meaning that one tract of land might be cheap compared to another tract of land in the same general location. But the term “cheapest” land is absolute in nature, meaning that no other tract of land anywhere in the United States is cheaper in price! OK, so where can the cheapest land for sale in the United States be found today? The largest selection of the cheapest land available for sale in the United States today would be in Texas, Wyoming, South Dakota, Nevada and New Mexico.

The cheapest land for sale in the United States, purchased today for a long term investment, would be one of the safest assets one could acquire and also one of the most certain assets to increase in future value. It is a safe asset to own because it can’t be stolen, destroyed by fire, mismanaged or outdated by technology. It is certain to increase in value because all that is required is inflation and an ever-expanding population, both of which are inevitable.

How did prices for the cheapest land for sale in the United States compare with the stock market over the last 50 years? In 1960 the Dow Jones was near 700, and today it is about 10,000, or 15 times higher than it was in 1960. In 1960 the cheapest land in the United States was around $5 per acre and the cheapest land for sale in the United States today is 450,000 acres in Nevada for $178 per acre, or 36 times higher than in 1960. How about the value of cash over the last 50 years? According to the U. S. Bureau of Labor Statistics it takes $7,375 today to buy the same goods and services that $1,000 purchased back in 1960. This means that inflation robbed the dollar of 86% of its purchasing power over the last 50 years.

There are 2.4 billion acres of land in the United States and 100 years ago the population was 92 million. That equated to about 26 acres per person. Today the population is 307 million people equating to only 7.5 acres per person. Can future land values do anything but go up?

Acquiring a tract of the cheapest land for sale in the United States can be one of the safest and surest methods of creating wealth over the years. In fact history has taught us that it is virtually impossible to lose money owning cheap rural land if purchased cheap enough and held long enough!

To view some of the cheapest land for sale in the United States CLICK HERE

Where to Find Cheap Property in the USA

Cheap property USA is a real estate niche that very few people understand or take advantage of. Much of the land in the USA, despite its being a well-populated country, is raw and barren. This raw, barren land is undeveloped, and few people realize the fabulous investment potential contained in such properties.

Developing this type of land would be impractical and incredibly costly. However, the value is not in development, but in simply holding for the long-term. This concept, unfortunately, is so simple that most people don’t grasp it. The act of developing land is an “operating business,” and as such contains many variables and large capital expenses. The function of buying and just holding land is a “passive investment,” and depends on nothing but the passage of time.

There are lands located in very remote, isolated regions of the United States that are quite cheap in price. They are cheap in price because a “developer” hasn’t started building roads, bringing in utilities, and so forth. Developers, however, are not philanthropists, and they will substantially mark up every dollar spent. So if a developer acquires $500-per-acre land and spends $1,000 per acre in improvements, the retail price will probably be closer to $5,000 per acre (not the $1,500-per-acre combined cost of the land and improvements). Otherwise, the developer couldn’t make a profit.

So as can be seen above, the cheapest prices available in the United States will always be for raw, remote, unimproved properties. And fortunately, it is with such properties that the greatest profit potential (for the buyer) is found.

Owning cheap property USA can be an incredible investment. It requires no business operation, no improvement capital, and relies on very few outside conditions. All that is needed is the passage of time and inevitable inflation!

To view cheap property USA, please click here.

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