Cheap Land in America

The “Law of Per-Acre Pricing” is very beneficial for those who deal in cheap rural land. Basically, this law states that “the larger a tract of land is, the smaller the per-acre price will be—and thesmaller a tract of land is, the higher the per-acre price will be.” In other words, 640 acres will sell for a higher per-acre price than will 2,000 acres; 160 acres will sell for a higher per-acre price than will 640 acres; and 40 acres will sell for a higher per-acre price than will 160 acres.

One of the basic principles of business is that prices are lower on a wholesale basis and higher on a retail basis. As an example, a person could purchase 16,000 acres of cheap rural land for $200 per acre; he could then sell one hundred 160-acre tracts for $400 per acre ($64,000 per tract); and thereafter, another buyer could purchase 160 acres, then sell four 40-acre tracts for $800 per acre ($32,000 per tract); and so on.

With cheap rural land, there is an automatic per-acre price increase with every division of the land into smaller sizes. However, it is of paramount importance to check with each state, and with each county within the state, to ascertain what subdivision regulations might be applicable. In some states, subdivision regulations are almost prohibitive, and in other states, there are almost no subdivision regulations.

In the 1800s, quite a few western towns were established on cheap rural land, utilizing “The Law of Per-Acre Pricing.” Town promoters would purchase 640 acres from the government for $1.25 per acre, then lay out streets and plot the land into town lots for commercial and residential usage. The original cheap rural land, purchased for $1.25 per acre, would thereafter become small lots in the new town selling for $2,000 or $3,000 per acre.

Dealing in cheap rural land, using “The Law of Per-Acre Pricing,” is an almost flawless method of accumulating substantial wealth. Of course, good business judgment, financial acumen, and good timing are always critical components in the cheap rural land business.

To view cheap rural land for sale, CLICK HERE.

South Dakota, once a part of the Dakota Territory, became a state on November 2, 1889. The state has an area of 77,116 square miles and an estimated population of just over 800,000 people. Pierre is the capital and Sioux Falls, with a population of nearly 160,000, is South Dakota’s largest city. The western part of the state is an excellent location to seek cheap land for sale in South Dakota that might offer spectacular future potential. This part of the state contains Sturgis (where more than 300,000 motorcycle riders converge every year for the world famous rally); the gambling town of Deadwood (the historic site where Wild Bill Hickock was killed); and the fabulous Black Hills and Mount Rushmore (attracting more than 2.5 million visitors annually).

Cheap land for sale in South Dakota offers some of the best land investment and speculation opportunities available anywhere in the United States. In fact, South Dakota is one of the five states containing the lowest-priced land for sale in the nation. The other four states are Wyoming, Texas, New Mexico and Nevada. No other state in the United States – be it any state east of the Mississippi, any of the Great Plains states or Arizona, Montana, Idaho, Alaska, Colorado, Oregon or Utah – will have land for sale at cheaper prices than land available in these five states. Of the five states, however, South Dakota, Wyoming and Texas probably offer the best combination of low prices, wide market demand and relatively lenient subdivision regulations.

The term “cheap-land” refers to the per-acre price and not the per-parcel price. For instance, $47,840 for a 160-acre tract is a far cheaper price than $2,995 for a half-acre lot. The reason the 160-acre tract is cheaper is that it costs $299 per-acre, while the half-acre lot costs $5,990 per-acre. The key to success in buying rural land is to concentrate on the per-acre price and not the per-parcel price. Ever since the Pilgrims landed in 1620 and Americans began migrating west, land dealers have made fortunes buying land per-acre and selling lots per-parcel!

There is more to consider regarding cheap land for sale in South Dakota, however, than the price itself. While the price is of paramount importance, accessibility issues, title policy availability and applicable subdivision regulations also are major concerns. South Dakota has one of the most advantageous access policies of any state in the nation as state statutes require that all section lines be made available for road access and ingress and egress. Major title insurance companies provide title policies for landowners and there are very few state or county subdivision regulations affecting the sale of land in 40-acre sizes or larger.

In summary, South Dakota offers some of the cheapest per-acre land prices to be found anywhere in the United States, and is an excellent place to acquire a large tract of cheap land!

To view cheap land for sale in South Dakota CLICK HERE.

Is there any other place besides Wyoming in the entire United States of America where one can find more land for less money?

The reason Wyoming presents such interesting investment opportunities is that there is a large amount of “checkerboard” land ownership in the state. The “checkerboard” ownership in Wyoming is among the largest of all 50 states.

A little history: The Pacific Railroad Act of 1862 was approved by the United States Congress and signed into law by President Abraham Lincoln for the purpose of aiding the construction of railroads from the Missouri River to the Pacific Ocean. This bill gave 10 miles on either side of the tracks to the railroad companies to help offset the cost of construction. The Pacific Railroad Act of 1864 expanded that distance to 20 miles on either side of the tracks. The United States Government retained half of every township given to the railroads by keeping alternate sections. This resulted in the ownership of these townships resembling a checkerboard, with every even-numbered section owned by the government and every odd-numbered section owned by the railroads. Over the years, the railroads resold a large portion of their holdings to private individuals.

For private owners of land in the checkerboard, there is a disadvantage offset by a huge benefit. The disadvantage is that it is almost impossible to secure “insurable access” through federal property; therefore, power and utilities are seldom available, and banks won’t loan for construction where there isn’t insurable access. “Physical access,” however, is a different matter. The government has never blocked access to private property since the Pacific Railroad Act of 1862 was passed; and furthermore, title companies will insure ownership of private land in the checkerboard.

The huge benefit for private landowners in the checkerboard is that “the public can’t cross private land to get to public land, but private owners can cross public land to get to private land.” This amazing policy means that private owners can access millions of acres of public land that the general public can’t get to, enjoy or even visit (because to do so would constitute “trespassing” on private property)! This unique ownership feature, coupled with a low purchase price, makes checkerboard land an asset that can offer substantial future potential.

The cheapest land in Wyoming can be found in the southern part of the state along the I-80 corridor. If you know where to look, land in this area can still be purchased for less than $250 per acre, but these prices are rapidly disappearing.

CLICK HERE to view the cheapest land in Wyoming.

The opportunity to invest in cheap land in America should be thoroughly and seriously explored. Cheap land is a very safe asset, and one that is certain to increase in value in future years. Cheap land can’t be stolen, destroyed by fire, outdated by technology or reproduced. All that is required for cheap land to increase in value is inflation and a greater population, both of which are inevitable. Following are just two historical examples to consider.

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 goal was to provide a source of irrigation and turn this 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 land 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 over the last 100 years, what has happened to land prices in the Imperial Valley? Much of the land is still without water, still desolate and uninhabitable, yet it is very difficult today to find land in the Imperial Valley for less than $1,000 per acre.

For a more recent example of people who decided to invest in cheap land, consider the corridor along Interstate Highway 80 in Wyoming, between the towns of Rock Springs and Rawlins. Local residents refer to the region as “barren and worthless.” Most of the cheap land in this part of the state is in the checkerboard area (ownership of alternate sections divided between the federal government and private owners), which eliminates development potential. Known as the Red Desert, the area has no power, water, utilities or maintained roads.

In 1990, land in the Red Desert could be purchased for as little as $15 per acre. Today, 20 years later, ownership is still divided between the federal government and private parties, the area still no power, water, utilities or maintained roads, and the zoning is unchanged. Yet this same “barren and worthless” land now sells for as much as $500 per acre.

For those who invest in cheap land, 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. Ever since the Pilgrims landed in 1620 and Americans began migrating west, people have made fortunes buying land by the acre and selling lots by the parcel!

CLICK HERE to view various opportunities to invest in cheap land.