Posts Tagged ‘low price’

Foreclosed Land for Sale in the United States

It is not unusual in today’s economic times for a person who previously purchased land to lose the land in default proceedings for failure to keep the payments current. When a lender repossesses the land and offers it for sale again, it becomes foreclosed land for sale. Often, the buyer receives an exceptional bargain because the previous owner already has paid in a considerable equity.

In other words, “One man’s loss becomes another man’s gain!”

A landowner might default and lose ownership for many reasons having nothing to do with the property. The owner might have lost his job; maybe there was an illness in the family; perhaps there was a divorce, or even a death. For these reasons, and perhaps others, ownership of the land was lost, yet the land itself represents an excellent value with great future potential. In other words, the owner’s financial situation “went bad,” but the land is still good.

On the other hand, there are situations involving foreclosures where the owner’s financial situation is still good, but the value of the land “went bad.” These scenarios involve developed land that is no longer economical to develop, and the costs make it too excessive to hold.

An ancient book entitled “The Art of War” contains a clause that states, “A good general ponders the dangers inherent in the advantages, and the advantages inherent in the dangers.” Astute real estate investors should analyze both dangers and advantages inherent in the foreclosure business in much the same manner.

The ideal type of foreclosed land for sale—large tracts of cheap rural acreage—presents an exceptional opportunity that should be thoroughly investigated.

To view properties for sale, CLICK HERE

Cheap Land for Sale Versus Expensive Rural Property

Let’s compare very cheap land for sale with the opposite end of the spectrum, very expensive land for sale. The latest Land Report Magazine (Winter 2011) listed the 10 most expensive rural properties for sale in the United States.

The 10 most expensive rural properties ranged in size from 1,750 acres to 55,700 acres and were priced from $1,000 per acre to $100,000 per acre. Total sales prices were $44 million to $175 million. The properties were mainly located in Wyoming, Montana, Colorado, New Mexico, and West Texas.

Who or what establishes the sales price of 1,750 acres near Jackson, Wyoming at $100,000 per acre, or $175 million? Basically, the sales price is determined by what one multimillionaire or billionaire agrees to pay another multimillionaire or billionaire. In other words, it is a very tenuous, somewhat illusionary, market. These properties are purchased with discretionary funds that can easily dry up during economical recessions. Paying $100,000 per acre for 1,750 acres with the expectation of a quick profit would be exceedingly risky. The price could just as easily sink to $60,000 per acre, resulting in a capital loss of $70 million.

Very cheap land for sale, properties selling for $300 to $400 per acre, very seldom, if ever, decline much in value, as they are already priced at the very bottom of the scale. Furthermore, there is safety in the number of people who would have the interest and the financial means to purchase $300 to $400 per acre land. Conversely, how many people in America would have the interest and the financial means to write a check and pay $175 million for 1,750 acres of rural land?

To view very cheap land for sale, please click here.

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How to Make a Profit on Dirt Cheap Land!

If a person can acquire enough dirt cheap land and hang on to it for a long enough period of time, it would be literally impossible to not make a substantial sum of money on the investment. In order to understand this concept better, it would be important to read the fascinating life story of Mr. Jay Cooke.

Jay Cooke was born in 1821 and eventually opened a banking house, Jay Cooke & Co., in Philadelphia. During the Civil War, he was the most prominent financial backer of the northern government and the Union army. He became known as the “Financier of the Civil War.” It was his railroad dealings after the Civil War, however, that made him more of an historical figure.

In the late 1860s, Cooke became involved with the Northern Pacific Railroad. The plan was to build a railroad from Duluth, Minnesota to the Pacific Northwest. Cooke agreed to take over the financing of this enterprise by selling enough bonds, backed by a 50-million-acre land grant provided by the federal government, to pay for the construction of the railroad. If any private individual in American history ever had control over so much dirt cheap land, it was Jay Cooke.

Cooke first personally acquired hundreds of lots in Duluth and then started marketing the railroad bonds all over the United States and Europe. Sadly, the timing was terrible, as the business climate turned cold. The economy was shaken by Jay Gould’s attempt to corner the gold market; a fire broke out in Chicago, leveling three-quarters of the city; another fire soon erupted in Boston, destroying its commercial center; and the Franco-Prussian War ignited in Europe. The financial Panic of 1873 followed, resulting in the collapse of the Jay Cooke & Co. banking empire. Soon thereafter, Jay Cooke went bankrupt.

However, a statement Jay Cooke made several years before proved exceedingly prophetic: “There is not the slightest probability of there being any cessation in the legitimate demand for land unless the world comes to an end.” Well, the world didn’t come to an end and the hundreds of lots Jay Cooke purchased in Duluth back in the late 1860s became very valuable, and he regained substantial wealth. Cooke proved that dirt cheap land will always produce a profit; it’s just a matter of timing!

To view dirt cheap land for sale, please click here.

Where do you find the Cheapest Land for Sale in America

There has been cheap land for sale in America since the Pilgrims landed at Plymouth Rock in 1620. The big variable, of course, is that the word “cheap” meant different prices at different stages in America’s history. The constant factor, however, was that what seemed like a cheap land price in one period in time ALWAYS became substantially higher at a future point in time.

Let’s take a short walk down memory lane regarding some land sales transactions and prices.

  • In 1626 Peter Minuit purchased Manhattan Island from the Indians for $24. There are 23 square miles in Manhattan or a little less than 15,000 acres. Thus the price amounted to approximately 2/10th of one cent per acre.
  • In 1803, President Thomas Jefferson paid Napoleon Bonaparte $15 million for more than 500 million acres of land constituting the Louisiana Purchase. The price was approximately three cents per acre.
  • In 1853, The United States acquired from Mexico almost 19 million acres in southern Arizona, known as the Gadsden Purchase. The price was $10 million, or a little over 50 cents per acre.
  • During the last half of the 19th Century, the railroads were promoting and marketing millions acres of land in the Western states for $1.25 to $2.50 per acre.
  • In the first half of the 20th Century, ranchers, settler, and speculators purchased millions of acres in the Western states for prices ranging from $5 to $25 per acre.
  • In the second half of the 20th Century, some of the same land acquired for $5 to $25 per acre was resold for $25 to $250 per acre.
  • Today, in the first few years of the 21st Century, it is becoming more and more difficult to find tracts of unimproved acreage anywhere in the United States for much less than $500 per acre.

To view some cheap land for sale in America, please click here.

Cheap Land Sales in Rural Areas

Cheap land sales have historically generated opportunities to build substantial personal wealth. The secret to making money from inexpensive land is buying large parcels of low-priced rural land. There is a surprising amount of profitable, cheap land for sale in rural areas of the U.S.

Some land investors make the mistake of looking at the parcel price rather than the price per acre. Like buying items for sale at wholesale prices, buying land in “bulk” is much cheaper and will yield higher profits when resold in smaller parcels.

A great investment in any economy, inexpensive land offers protection against inflation. Just as many wise investors amassed enormous fortunes from property purchased during the Great Depression, property bought at depressed prices during a major recession can yield impressive sale prices when the economy recovers.

Unlike commercial real estate or rental properties, rural acreage is generally a much simpler investment. Although researching local subdivision laws before making a purchase is essential, low-priced rural land is less bogged down by bureaucracy and involves much less risk of property damage.

Rural property often brings other financial advantages. Rights to certain natural resources may be obtained, and sometimes buyers may even elect to engage in cattle-grazing operations. Generating meaningful wealth is still an option for many, even without a business degree or millions to invest. Cheap land sales can help build a nest egg and ensure a bright financial future.

To view cheap land sales, please click here.

Where to find Cheap Rural Land for Sale

The most expensive land for sale in the United States is situated in the downtown sections of the larger cities and the least expensive land is located in the outlying rural portions of the nation. The best deals regarding cheap rural land for sale anywhere in the United States of America will be found in the larger Western states: Texas, Wyoming, South Dakota, New Mexico and Nevada. In the remote rural areas of these states land can still be found for prices under $500 per acre.

The advantage of finding cheap rural land for sale is that purchase prices will generally be very reasonable and easy seller financing is usually available. Of the various investments available to people today – rental properties, commercial buildings, business franchises, oil drilling partnerships, commodities, bonds and stocks – cheap rural land is the easiest to acquire, the easiest to maintain and in 25 years from now is the most certain of all the other assets to still be here and to be worth more money than it is today.

Cheap rural land is a finite asset, meaning there are only so many acres available in the United States and there is no way to manufacture more land. The United States of America contains 2.4 billion acres of land and 100 years ago, in the year 1910, the population was 92 million people. That equated to 26 acres per person. Today there are still 2.4 billion acres of land in the United States and the population is 307 million. This now equates to only a little over 7.5 acres per person. Thus is there any doubt but that cheap rural land for sale today will become much more valuable in future years?

As evidence of this inevitable price increase consider that in 1990 cheap rural land in parts of Texas, Wyoming or South Dakota could have been purchased for $50 per acre or less. Today some of that same land is now priced at closer to $500 per acre, an increase of 10 times the 1990 price.

How did the stock market perform over this same period? In 1990 the Dow Jones was 2900 and today it is around 11,000, an increase of approximately 4 times the 1990 price. What about the value of cash over the same period of time? According to the U. S. Bureau of Labor Statistics it takes $167 today to buy the same goods and services that $100 purchased back in 1990. In other words inflation robbed the dollar of 40% of its purchasing power is just 20 years time.

Finding cheap rural land for sale and purchasing under beneficial terms might well be one of the surest and safest methods of building wealth in future years. History has taught us that it is virtually impossible to lose money owning large tracts of rural land if purchased cheap enough and held long enough.

To view cheap rural land for sale CLICK HERE

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Benefits of Buying Country Acreage

The traditional real estate investment approach is to buy income properties (single family homes, duplexes, apartments, and commercial buildings), or predevelopment land near population centers that are in the path of growth. In many instances, however, simply buying unimproved country acreage in the “boondocks” can provide safer and more predictable financial results.

The least expensive part of an investment can often be the initial funds needed to acquire the asset. The most expensive part of an investment, however, can sometimes be the capital required to develop or improve the asset after it is acquired. In the case of income properties or land for development, the cost of maintaining the buildings or paying for the development can be very high. Raw land, however, costs very little to own or maintain.

For instance, let’s say you buy commercially zoned land in the city for $500,000, then spend another $1 million erecting a duplex and another $250,000 maintaining it through the years, and eventually sell the property for $2 million—then you would receive $2 million on a $1.75 million investment, or a net of $250,000.

Wouldn’t it make more sense to buy cheap acreage in the “boondocks” for $500,000, spend practically nothing on maintenance or development through the years, and resell it for $1 million at some point in the future? Using this scenario, your potential profit would be $500,000 on a $500,000 investment—instead of $250,000 on an investment of $1.75 million.

While it is a little understood real estate investment niche, sometimes just buying cheap country acreage and holding it for the long haul can be the best investment approach. In this manner you are simply relying on time to create a profit, instead of costly maintenance and improvement expenses.

To view country acreage for sale, please click here.

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Acreage for Sale at Cheap Price is Disappearing.

Acreage for sale cheap is something that the United States of America has very little of anymore. While there is an abundance of land available for sale, it can hardly be called cheap. Land that can be purchased for under $500 per acre is rapidly disappearing.

The very word “acreage” is a common American term that simply refers to multiple acres. An acre contains 43,560 square feet. A lot measuring 200 feet wide and 218 feet long is basically an acre in size. Our entire nation was surveyed into townships containing 36 sections, with each section containing 640 acres.

In Europe and South America they use “hectares” as a land measuring unit, as opposed to acres.  A hectare basically contains 2.5 acres, thus four hectares would be approximately 10 acres. A 50,000 acre Texas cattle ranch being advertised for sale in Europe would be viewed by the Europeans as a ranch of 20,000 hectares.

Regardless of how one views the measurement of land, it is pretty hard to lose, over the long-term, by acquiring large tracts of it at cheap prices and holding for the long term. Large tracts of acreage for sale cheap, located anywhere in the United States of America, present an opportunity that many astute investors would investigate quite closely. After all, land can’t be stolen, destroyed, or mismanaged, and no one can create any more of it!

To view acreage for sale cheap, please click here

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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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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.