Should I Invest Or Not?" />
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Willy @ The Real Estate Project

Making Real Estate Happen

Should I Invest Or Not?

Things to think about when considering real estate investing In Land:

 

  1. Why Land ?  Land is not going anywhere anytime soon.
  2. What To Look Out For. When looking at land there are a few things to look out for. Like access to the property. Is access via a dirt road or a paved road. If access by a dirt road, is it a maintained road by the County or by other owners in the area. Walk the property and look for any corner markers. Look for anything like a wash that goes through the property that could  make the property only partially usable. Look where the utilities are if there are any. Bringing power in to a property can be quite expensive. All these things can affect price and desirability later on when it comes time to either sell or build on a property.
  3. Do Research On The Property.  Always check with either a title company or with the County on the land use ability. Sometimes the zoning may only allow a specific usage. Title companies can also provide you with an easement map that will show where the utility right of ways are and any other easements that may be on the property like set backs for a road.
  4. A long Term Investment. When you buy a large parcel of land or even a smaller city lot, your investment is typically a long term investment. Land does not sell quickly and usually requires extensive marketing.
  5. When You Want To Buy. Depending on the price and size of the property that you are thinking of buying should determine whether or not you should use a title company and escrow for the transaction. You always want to make sure that the person selling the property has clear title. Meaning that there is no cloud on title.  And what I mean by "cloud on title" is that there are no liens on the property or that the person selling the property is the only person on the title and no one else. I have seen instances where there were several people who had a percentage ownership interest in the property. To become the full owner you would need to get all the other people to acknowledge on the purchase contract that they are giving up their each and own percentage ownership in the sale. The more complicated the deal, the higher the price, the larger the land and any question as to ownership should entice you to use a title company and escrow in your purchase. Now with all that said, it is possible to buy a parcel of land for a couple of thousand dollars or less and have the Seller deed the title over to you and you go down the County clerks office and record the new ownership.
  6. When You Want To Sell. If you didn't do it when you first bought the property, get a file started. Know where the Deed to the property is and have it in that file. Determine an asking price. To help you with that ask a Realtor or look on Zillow for recently sold properties that are like yours. Always use Sold properties as your comparables for determining an asking price. I've seen far too many people going by what other people were listing their properties for only to sell far less than what they were asking for. The price at what market values are are what people will pay for a property similar to yours in your area. If you price too high, you will never get any interest in your property. Be open to Seller Financing. I have sold more properties with Seller Financing than any other way. Your Seller Financing can be short term (3 to 5 years) or long term (10 to 20 years). Use low down payments and low monthly payments and balloon payments. Market your property for sale everywhere you can think of. Craigslist is a good source for buyers. Just know that you don't have to list your property with a Realtor, but offer a commission incentive to a Realtor to bring you a buyer. There are many online sources where you can market your property for free.  

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