This is a guest post by Jane Bakerson. Click here if you’d like to write a real estate guest post to be featured on Find Land Auctions Online.

A Guide to Buying Land for Development in Central America

The most common investment strategies for buying land in Central America fall into two main categories. The first is buying a large parcel generally with limited infrastructure with the aim to subdivide the property and sell off smaller lots to end-users, typically serviced at a minimum with water and electricity. The second is purchasing vacant lots within a real estate development ideally with some infrastructure in place either to build houses on the lots for re-sale or to flip the vacant land once the development has moved forward with its master plan.

The “Path of Progress”

A critical factor with both approaches is to choose the right location for the land investment. In Central American markets, which are generally less developed than markets in the US, you want to position yourself in the ‘path of progress.’  It’s important to find out about local trends. Where are infrastructure improvements planned? Are tourism number rising? In Panama, for example, the airport at David in the western province of Chiriqua is currently undergoing expansion to accept international flights. In San Juan del Sur, Nicaragua, the government is expanding the port facilities to accept more cruise visitors and in Placencia, Belize, the road along the length of the peninsula has recently been paved. These are all positive signals for developers interested in momentum effects and getting a foothold early in maturing real estate destinations.

You Won’t Find A MLS in Central America

Seasoned land investors realize that they need to put in the legwork to find the best deals. Property for sale in Central America counties like Costa Rica, Panama, Nicaragua and Belize is not managed under a Multiple Listing Service, as it is the US. This means that there is no single source of information on available properties any most of the land listings will be ‘pocket listings.’ So there’s really no alternative to contacting all real estate agents in your target market and building a network of local contacts if you want to be sure you are seeing all there is to see.

Data and Comps Are Hard To Come By

Bear in mind that official data on property sales is not available in Central America. Without access to reliable statistics on price trends or information on how long properties have been on the market, it can be difficult to get a good feel for value. It’s a good idea to start building your own spreadsheet comparing asking prices. And you’ll also find some sources of objective analysis on line. Sites such as Reveal Real Estate, which tracks asking prices in real estate developments across Central America, will help in your research. But treat asking prices like starting prices. They often vary considerably from sales prices, especially in the current ‘post-crisis’ market environment.

Protect Yourself and Do Your Due Diligence

Hiring a competent attorney to do your due diligence is vital before you put any money at risk. Ensure they dig deeply into the title history of the property you are looking at to find any liens and encumbrances. Speak with local planning authorities about your development plans to determine if there could be any restrictions and determine what permits will be required and who will need to approve these. Verify water sources and electricity provision and any improvements needed. When working out your budget for a development project it is critical that you ensure that your funds will cover the land purchase as well as any infrastructure improvements required. The business model of selling unserviced lots or funding infrastructure provision on the back of pre-construction sales was always a risky one, but particularly so in the current market where investors are retreating from more speculative investments types.

Jane Bakerson is lead writer for Reveal Real Estate. She covers Central American overseas property markets with a particular focus on real estate in Belize.

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Photo Credit: Shared Interest

Buying Land in Texas

Buying Land in Texas

Real estate is a very important industry in the state of Texas. Even through the recent downturn in the economy and real estate sales, Texas has been attracting new investors and land buyers. Although there was a small downturn in real estate prices in the state, this has only served to make land purchases more attractive and economical. Texas has a lot of diversity in regards to properties, which also serves to make buying property in the state attractive to potential homebuilders and real estate investors.

Why Choose Texas?

There are many reasons why people choose the state of Texas when looking to buy land. The state is full of beautiful wide open spaces. It also has an appealing culture and a lot of history. When compared to other states, property in Texas has always been a good deal. Instead of being overpriced, properties in Texas tend to be priced at a median level, which means properties in the state did not suffer the same kind of devaluation that other overpriced real estate markets did. Regardless of what you are looking for, you can probably find it in Texas. Whether you are looking for lakeside properties, ranch properties, or scenic land near the mountains for recreational purposes, you’ll be able to find property to suit your needs. The state is very appealing to those who enjoy an outdoor style of life. Of course, there are plenty of big cities in Texas, but there are also rural areas and big wide open country spaces, with something to offer for everyone.

Texas Property – Good Value for the Money

Investors have always looked towards Texas when looking for value. Real estate has always been realistically priced, making it very attractive as compared to states where the real estate values have been unnaturally inflated. The state has a strong economy, and there’s still plenty of room for growth and development. Regardless of whether you are looking to build a home, start a ranch, or develop property for business reasons, you’ll find something to suit your needs in Texas.

Land Investing Opportunities

In addition to properties for homes, Texas also features large areas of land for sale that are perfect for uses such as ranches, farming or even hunting acreage. Recreational properties are very popular in Texas, with land being purchased for all manner of sports and hobbies. The state offers a unique combination of plenty of wide open land and big city living. Many people are finding that investing their money in Texas real estate is a much better financial plan than the stock market or other kinds of investing opportunities. Whether you are looking for domestic, recreational or commercial properties, you’re certain to find it in Texas.

Photo Source: oneeighteen

Buying Land in Florida

Buying Land in Florida

The number of investors buying land in Florida continues to rise. Unlike the uncertain fluctuation of the stock market, many people have found that the price for land continues to appreciate, making it a good financial investment. There are many reasons why buying land in Florida is such an attractive option. Some people buy the land with the intention of building a house after they retire, or for the purpose of building a vacation home. Others choose to own Florida land as a profitable investment for the future, and plan to sell the land when prices rise even further. Whatever the reason for the purchase, it’s almost a guarantee that buying land in Florida is like putting money in the bank.

Factors that Make Florida So Attractive

Florida’s climate has always been a prime factor for people looking for land. The area is extremely popular among those who wish to retire to a warmer climate. It’s also an extremely attractive location for vacation homes. The state has many attractions, such as the beaches and theme parks, which also serve to make the area desirable to those looking to buy property.

Investing for the Purpose of Rental Properties

Florida is also a prime location for those who are looking to purchase property for the purpose of building rental properties. The market for summer vacation home rentals and beach homes is very strong in Florida. Some people also choose to buy property years before they intend to retire, with the plan of building a home for future retirement, but renting it out until that time comes. Using this method, the rental income is essentially paying for the property until the buyer wishes to use it as his or her own residence.

Choosing a Location in Florida

There are many diverse areas in Florida from which to choose, many of which are quite different from each other. For example, the southwestern area of Florida has beautiful beaches, and can be a great choice for those who are looking for an upscale lifestyle. The coast of Florida along the Gulf of Mexico has long been a favorite location for families. It is also a popular destination for those who wish to spend their retirement years in Florida. The area is full of friendly people, and has an appealing laid-back kind of atmosphere.

Factors to Consider Before You Buy

The recent real estate crash hit Florida rather hard, resulting in a high level of mortgage delinquency and foreclosures. As a result, it is currently a buyer’s market, and good prices can be found. This serves to make investing in Florida land more attractive than ever. However, insurance costs and deductibles have risen in recent years in the state, largely due to hurricane claims, so this is something investors also need to factor into their decision.

Photo Source: heather0714

Buying California Land

Buying Land in California

Land in California has always been an attractive and potentially lucrative investment. However, buying land in certain portions of the state can present certain challenges. Especially in popular areas such as southern California, there is a scarcity of property that has driven the prices up dramatically, with many lots topping the $500,000 mark. Land buyers are increasing looking for ways to build economical homes on these properties that will still allow them to end up with a profitable property. Additionally, many buyers are looking for land that is further away from the state’s main commuting centers, where real estate prices are more affordable.

Reasons to Buy Land in California

There are many different reasons why a person may be interested in purchasing land in California. Although many people are interested in purchasing property for the purpose of building a home, there are many other compelling reasons to buy. Some people have a dream of buying farm land in the state for the purpose of raising livestock, crops, or even to start a winery. Horse farms are also extremely prevalent and popular in the area. Before you start to look for land in California, you should understand your specific needs, and the area of California that would be most conducive to your intended use for the land.

Buying Vacant Land in California

In California, vacant land is referred to as commercial property. This is true even if the land is located in a residential area, and even if the buyer intends to build their primary residence on the land. Loans for vacant land in California are also considered by lenders to be more risky than residential loans. Since the land is vacant, the land cannot be considered as the buyer’s primary residence until the home is actually built. Until the time that a home is built, the owner actually has other housing options in regards to their primary residence, which is why lenders consider these loans to be a bit riskier. Buying land in California can be a great investment, but buyers need to expect a larger down payment requirement than they would for a home that is already built. Many times other requirements also exist when purchasing vacant land, such as a detailed construction timetable, building budgets, and architectural drawings for the residence to be built.

Advantages of Buying Land in California

As compared to purchasing a home that is already built, buying property has many advantages. As long as you are able to work within the zoning requirements and building regulations for the area, you will be able to create just the kind of home or structure that you desire. This can be much more beneficial and financially advantageous than trying to remodel an existing home to meet your needs. Also, because of the recent real estate crash, many buyers are finding prices more affordable than ever in California.

Photo courtesy fkehren

Buying Land in Arizona

Arizona has always been known for being a place where you can find great land for reasonable prices. In fact, many consider it to be one of the last areas where you can find such reasonably priced property. The state continues to grow, with many people leaving densely populated cities in favor of the kind of open land one can find in Arizona. The state is also a popular destination for those who are looking to retire to warmer and more pleasant surroundings. Many people are buying property now, with the intention of building their retirement home on the property. Of course, those who are looking for large amounts of acreage for the purpose of ranching are also drawn to the state of Arizona.

Why Choose Arizona?

Arizona has plenty of advantages to offer, which is why it is such a popular area for those looking to relocate to warmer climates. Arizona is affordable, providing many neighborhoods and areas that are attractive as well as reasonably priced. Whether you are looking for rustic acreage for a ranch or recreational property, or property in an upscale neighborhood to build a home, you are sure to find what you are looking for in Arizona. The housing and properties are reasonably priced, and overall the state has a strong economy. Of course, the natural splendor of the state is legendary, with visitors coming from miles around to see the breathtaking beauty of the land. The climate in Arizona is also very dry, making it a popular destination for those who seek the health benefits of the dry desert air.

Recreational Properties in Arizona

Arizona has some of the most beautiful recreational properties that you’d ever want to find. Whether you are looking for acreage for a country ranch, or want to build a mountain cabin as a vacation get-away, you’ll find it all in Arizona. Many people are attracted to these secluded properties for vacation homes, even if they also choose to own a home in one of the nearby cities. In fact, many areas of Arizona are with a short driving distance from big cities such as Las Vegas. Because of the warm weather all year long, you’ll get much more use out of a recreational property in Arizona as compared to the much shorter warm season in states with a colder climate. Owning property for the purpose of hunting is also popular in Arizona. Many people choose to buy acres of property to use investment purposes, or for future development. Owning property for the purpose of developing and operating guest ranches and riding facilities is another investment possibility. Guest ranches and horse riding trails are popular vacation destinations, and land purchased for this purpose could be quite profitable. Whatever your desire, you’re sure to find that buying Arizona land is an investment that you will not regret.

Land for Home Builders

This is a guest post by Alfred Wendler. Click here if you’d like to write a real estate guest post to be featured on Find Land Auctions Online.

Have you been wondering how to make money buying land at auctions?

Have you considered partnering up with a home builder?

A little known investment strategy is land banking, where investors purchase land on behalf of home builders for future use.

Many publicly traded home builders have pools of investors they work with who buy land for the home builder at auctions. The investor then holds the land for extended periods of time until the home builder is ready to construct new homes.

Why This Works

Home building is a cash intensive business, so home builders are always seeking ways to maximize cash on hand. Having investors use their money to buy land means the home builder is able to free up the same amount of cash for daily operations.

Some investors go as far as beginning the development of the land for the builder, getting all the necessary zoning and civil engineering approvals out of the way which can save the builder many months.

How You Make Money

As an investor, you sell the builder the land for more than you paid. How much more is something you work out with the home builder in advance.

You are usually able to see a higher return on your money than most banks can offer, with the added protection of actually owning an asset during the process.

Why Builders Are Willing To Do This

Home builders are just like you in that when they need to borrow money, they know they will be paying interest. The challenge they face today is finding lenders willing to loan money. Or loan money at a rate that makes sense for the builder.

By partnering with investors such as yourself, the home builders can gain access to money they may not have been able to otherwise, and at a rate they can afford.

Why This Makes Sense For You

Unlike traditional investments where you simply put your money in an investment such as a mutual fund and have no say over how that fund operates, land banking allows you to have direct control of your investment. Until you sell the land to the home builder, the land is owned by you.

If you are seeking a new way to make money buying land at auctions, make sure you explore the opportunities that exist in land banking.

Alfred Wendler is a former real estate agent looking to help the first time home buyer buy their first home and achieve the American dream of home ownership. He loves to help others find ways to make money in today’s economy, and you can follow him at twitter.com/rehelpsite doing just that.

Photo Courtesy ConcreteForms.

Buying Land in Colorado

Colorado still has plenty of great real estate available, including unspoiled mountain property and acres of land with a spectacular view. Many people purchase land in Colorado for the purpose of building a vacation home or for recreational activities such as fishing, hunting and skiing. Whether you are looking to buy acres of land as an investment, or you wish to build a mountain cabin as a vacation or retirement home, you’ll find plenty to choose from in the state.

Why Choose Colorado?

One of the great things about Colorado is the spectacular scenery. Whether you are looking for rural unspoiled acreage or simply a property where you can view the mountains in the distance, you’re sure to find what you are seeking. Additionally, some of Colorado’s most pristine rural areas are actually located within easy driving distance from metropolitan areas, providing the best of both worlds. Areas of the state that surround popular skiing areas can offer great investment opportunities, whether you wish to build your home there, purchase land for development, or buy land for the purpose of building your retirement home later. In fact, some people prefer to purchase land and build their vacation home now, but use it as a vacation rental property until they are ready to retire. Using this method, it is possible to use the rental income to pay for your future home. Those who relocate to the beautiful state of often find that it is the perfect place to relax and reconnect with nature.

Recreational Properties in Colorado

It is hard to imagine a more perfect setting for purchasing recreational property. There are acres of prime real estate, perfect for those who wish to use it for vacationing, hunting, horseback riding, skiing, or many other recreational activities. It is common to find parcels of land that include ponds, wooded areas, and spectacular mountain scenery. Additionally, there is still some real estate left that is in relatively close proximity to popular ski areas and national forests, which can be a great investment.

Farms, Ranches and other Rural Properties

Colorado land is also perfect for those who wish to own a farm or a ranch. When considering parcels of land, it can be helpful to look for properties which include some forested areas, as this can greatly increase the value of the property. Access to a stream, pond or lake is also a highly desirable feature. Of course, when purchasing rural property, you’ll also want to think about the necessary access to public utilities such as power and phone lines. In extremely remote areas, you may need to investigate options such as wind or solar power generators. It is also important to make sure you have proper access to your property. Any property you purchase should have the proper easements to allow you to get to it legally. You’ll also want to consider what access to your property will be like once the snow starts to fly.

This is a guest post by Ryan Chaffin. Click here if you’d like to write a guest post to be featured on Find Land Auctions Online.

Almost every major city has its own character and style, and Kansas City has its distinguishing attributes. If you are looking into Kansas City real estate, and aren’t sure if you want to stay in the city, or you want to live outside the city but stay close enough to utilize the city’s advantages, here are 5 areas to think about buying land.

Harrisonville, MO
Harrisonville is the county seat of Cass County. Within a 45-minute drive from Kansas City, Harrisonville is a balanced combination of history and progress. Keeping its historical roots fresh and integral to its citizens and tourists while building a future that successfully embraces progress and economic vitality, Harrisonville embodies their city motto of “Enhancing Our Growing Community, Maintaining Our Quality of Life”. Plenty of parks, recreation, and outdoor activities along with a involved community, emphasis on maintaining its history, traditions, and way of life, Harrisonville is an ideal place to live.

Smithville, MO
A quiet town of about 6,000 residents just a few minutes north of Kansas City, Smithville has all the advantages of big city diversity, but maintains its small town atmosphere. Home to the 7,200-acre Smithville Lake with abundant recreation; Paradise Pointe Golf Complex’s challenging 18-hole course; downtown Heritage District with quaint shops and restaurants, Harrisonville is a perfect small town on the cusp of Kansas City real estate.

Riverside, MO
Another small town gem just north of Kansas City, Riverside sits on the tree-shaded banks of the silent and swift Missouri River. Claiming a pioneering spirit and fierce independence, Riverside citizens possess long historic roots and commitment to their thriving community.

Blue Springs, MO
About 30 minutes from Kansas City, Blue Springs is a unique community. Families, visitors and businesses all share a special quality of community closeness and cooperation. With Blue Springs Lake, three golf courses, along with a vital community, Blue Springs offers Kansas City real estate seekers a fresh alternative to big city living.

Cameron, MO
Called the “Crossroads of the Nation”, Cameron is about 50 miles north of KC. Combined with Missouri’s low cost of living, and Cameron’s local land discounts, low crime rate, rural lifestyle, clean air and water, abundant recreation possibilities, and a friendly small town atmosphere, Cameron has everything for those who truly want to get away from the city.

Ryan Chaffin is currently a college student majoring in Business Marketing. He loves anything technology, internet, and social media related along with sports and health & wellness. Ryan believes in achieving your fullest potential on and off the web.  You can also find Ryan on Twitter (@ryanchaffin).

The property market in America is still declining, but our neighbor towards the North is growing by leaps and bounds, and it does not seem to be slowing down soon. The figures in the Real Property Association of Canada reports are showing another strong month, exceeding last month and climbing. Perhaps the fantastic growth potential is why many Americans are thinking about buying land in Canada. It has much to offer and is a great escape if you enjoy wonderful weather all year around. Many Americans have gone just for a visit, but the gorgeous scenery convinced them to stay.

If you are considering buying property in Canada, you may want to consider becoming a resident if you are going to be living there for a significat portion of the year. If you choose to keep your home in America, you may want to become a dual citizen. Check the Canadian Consular and Embassy for more information on dual citizenship. Obtaining a Canadian driver’s license and buying a vehicle is easily accomplished.

Most of the Canadian Provinces have no restrictions on where you can purchase land, but sometimes there are limitations on the amount that a non-resident may buy. For example, on the island of Prince Edward, non-resident buyers must go through the Regulatory and Appeals Commission when applying for more than five acres, or for property that is more than 165 feet from the shore (source). In Manitoba you can’t own farmland unless you plan to physically live on the property within a two year period. In Saskatchewan non-residents cannot have more than ten acres (source), and in Alberta they can have up to two plots, but not exceed twenty total acres (source).

Finding the perfect plot is not as difficult as one might imagine; and worth the effort involved. Here are some things that are quite useful to know before starting the process.

Here are the basics:

Of course, you must find the perfect location that is best for you and your family.  Ase mentioned above, there may be rules that apply to Americans as far as how much property they can own, so it is important to talk to a knowledgeable Realtor who is familiar with foreign regulations. Have a list ready and search online. Make sure they can answer any questions or concerns you may have. When you feel like you’ve decided on the best place, find a trusted lender and apply for the mortgage.

Register at the Canadian title’s office. You will have to go through a Canadian mortgage company to process the application, as you will not be able to go through your American bank. This may prove rather difficult, but can be accomplished with a little patience and effort on your part.

After you have decided on the perfect place, make your offer. You may have to put about 35% down, larger than most American down payments, but sometimes a lender in the U.S. can help you partly with the transaction. Make sure you have discussed everything with the Realtor, including the annual taxes. Finally, sign the contract and enjoy everything that Canada has to offer.

Looking to purchase Canadian Land through online auction?  Take a look through our land auction selection of check out the real estate auctions on eBay.

Owning a piece of property is the ultimate dream of a lot of people, since owning a large piece of land simply for recreational purposes can be so rewarding. For a number of those people, the purchase is not just about land, it’s about what the land provides.  Hunters regularly purchase tracts of land for their own use, as well as to rent and lease to other hunters and outdoorsmen.  What’s more, great hunting land can often be found for cheap prices, since some of the best hunting properties are so remote.  Thinking about purchasing your own hunting property?  There are several things to look for when looking to buy land for hunting.

Finding Hunting Land

The first thing to do is to find a few potential areas to purchase.  Perhaps you already know exactly where you want to buy.  If not, try and pick a place that’s a quick drive from home so it’s not hard to escape to on the weekends.  There’s no sense owning a property that’s a hassle to visit.

Once you’ve got a couple potential areas in mind, look at the real estate market in the area or visit with a realtor who has experience with land and recreational properties. Ask to see examples of several pieces of land fitting your criteria (cabin on site, existing hunting properties, etc.). After finding an area that fits your price range and a realtor who seems honest, narrow your search to a handful of properties and begin to do your due diligence.  Investigate whether there is a lot of upkeep for the land, or will repairs cost a substantial amount.

If you’re looking for a good deal on the land, try looking into online land auctions.  eBay has a number of good options, and as long as you read the fine print and do the legwork to make sure the auction is worthwhile, you can find some good deals.

Also you must think about how long you are willing to keep this piece of land. It’s a good rule of thumb to understand that you should be willing to live with this piece of property for at least ten years. Determine how your finances look and how you will be paying for this property. If you’re planning on renting the land to other hunter’s, consider talking to an attorney or lawyer about how to report the income and minimize your liability when other people are toting guns all over your property.

Financing Your Land Purchase

A piece of land is a huge responsibility and it can be purchased using the same methods that are used to purchase a home. Cash, loans, and owner financing are the primary options for buying hunting land, as well as leasing with the option to purchase. Purchasing with cash is the ultimate way to purchase any type of property because it gives you more power over negotiating and getting a better deal.

The next method is land loans which can be obtained through local banks and investment institutions. The only difference with land loans is that the interest rates are much higher and the down payment required is much higher than with purchasing a home. A down payment for land can be 30% or more and the interest rates can be almost doubled that of a home purchase, depending on your lender.  Another source for land loans is local farming lenders, who can also provide great assistance with finding quality land.

Owner financing is when the owner sells you the land and you make payments to them rather than a mortgage.  This is a great option for older land owners or owners willing to consider monthly income rather than a fixed sum.  A fourth possibility is leasing financing, which is the same as renting with an option to buy. The buyer can rent the space and at the end of the rental agreement they can decide to purchase the land or not.

Enjoy Your New Hunting Property

Buying Hunting Land is a big decision, and one that can impact you and your family for years. Recreational land can be used for hunting, playing or whatever you see fit to use it for.  More likely than not, your property will be the foundation of memories for years to come, with family or friends.  Make sure you do your homework when purchasing, make a good decision financially, and you can be well on your way to enjoying your land for years to come.  Enjoy and happy hunting.

This post is a quick guide to a very practical issue that could be discussed in much greater detail – and has been.  After you win your online land auction or whatever type of property you’ve purchased, you may be looking to build yourself a cabin, lodge, hut, lean-to, or something of that nature.  I’m sure you have a number of great ideas in your head of what the materials will be, and the layout for the floor plan, and all the other details all the way down to the trim work.  But you’re forgetting one thing:  Where the hell you’re putting your house on your land.  So here’s a few tips to keep in mind when selecting the site for your building:

1. Don’t Build in a Valley

There are a number of great and enticing sites in valleys that you could build a home.  The soil is usually fertile and good for plants and crops.  However, water tends to head towards valleys, and where there is much water, there is dampness, which is something you want to avoid at all costs.  Also worth noting is that valleys may be colder in the wintertime in small or deep valleys compared to the surrounding land.

2. Don’t Build on Top of a Hill

It’s probably going to be tempting to build your home at the top of a hill.  The view is amazing, there’s horizon in all directions, and you can easily take scope of the land beneath you.  It’s quite easy to feel like a king in your new castle.  However, you’ll face a few difficulties which you should consider.  First, getting materials to the top of a hill will be difficult.  Modern machinery has solved this problem to a degree, but can your material distributor’s flatbed get to your building site to drop off plywood, beams, cement, and more?  During the building process, you’ll need a lot more room than just the footprint of the home.  After the home is built, are you going to be able to get water to the site without hiring the Army CORPS to design the network of pumps necessary get *really* weak pressure to your shower?  And on cold windy nights, will your home be naturally protected from the elements?  When you take your daily walk through your land and property, are you going to forever dread the 400 foot climb to get back to the porch?  These are serious considerations that affect your enjoyment of you property and even the marketability of the property down the road.   Take some time to get this right.

3. Southern Exposure is Just SMART

Southern exposure, if you haven’t heard the term before, is the way the sun is angled to the South as it passes through the sky each day (but only in the Northern Hemisphere).  By utilizing a few basic passive solar techniques, an architect or builder can build a very efficiently heated and cooled home simply by taking advantage of the how high the sun is during winter and summer.  Here’s a good explanation of proper home orientation to utilize Southern exposure.

4. Set Your Home Away from the Road

Do you enjoy the sound of the neighbor’s 17-year old son ripping past your bedroom window in the $600 off-roading 4-Runner they got him for his birthday?  How about at 1AM?  I didn’t think so. You bought this place for at least a degree of privacy, both visually and acoustically.  Make sure you take advantage of it.

5. Plan Your Entry Drive

Part of locating your home away from the road involves a lengthy drive way.  A quick tip?  Don’t draw a straight line from the property entrance to you garage.  Take a page from the Beatle’s and make it a long and winding road.  It’s more aesthetically pleasing for a number of reasons, and it will ease your headache when you find out there’s a 5 ton boulder in the middle of your pencil-straight driveway.

6. Don’t Build on Bad Soil

This is a trickier topic to delve into on your own, but hiring a knowledgeable builder to help with all of the above can certainly help you avoid building on bad soil, as well.  If the soil is wet?  Better find out if it’s like that often.  The drier the better, in fact.

So Where Should I Build?

Well, it’s pretty simple.  If you cut out all of the above no-nos, you’re left with this:  Build on a middle elevation on your property, not too low but not rising above the natural protection of the trees and earth, on a dry piece of land, with good Southern exposure, and plenty of space around the building site to make building easier, as well as make room for outbuildings, gardens, and other future projects.  Furthermore, consult an architect with knowledge of passive solar heating or study up on the topic yourself, and you’ll be a lot better off.

Recommended Reading for Choosing Where to Put Your Home:

1. Sell Timber – Timber sales on your land can provide great amounts of income on your property, depending on the size of the land and quality of the timber.  Not many people realize it, but you don’t need to clear cut a property just to harvest the trees.  A “residential cut,” for example, involves removing the highest valued trees on the property and thinning out the surrounding forest while keeping the property visually appealing for future or current residents.  If you are living on the land, renting it to a tenant, or if you purchased a large tract of timberland to subdivide and resell, this could be a good option for your situation.  Check out these quality posts on valuating and selling timber at LandThink.com for more information.
2. Lease to Farmers – If you have quality irrigated farmland this may seem a little obvious, but even property with large fields may have the potential for wheat or other crops that fare well on dry or unimproved land.  If your property is bordered by ranches and is large enough, you could also consider leasing it for grazing land.  Returns on farmland tend to be less than what you’d find with more active investments, like leasing a building or home, however they require much less work in turn.  Be sure to consult a lawyer with experience in farming leases before venturing too far into farm territory.
3. Lease to Hunters – Plenty of hunters will pay good money for the rights to hunt a property year-round, especially if your land comes with additional hunting rights, such as deer tags.  This can be done on properties as small as a few acres, and on larger pieces of property the acreage can be split into multiple hunting leases to make each lease more affordable to individual hunters.  Also, consider non-monetary options as well for your lease.  You may find a hunter who is also a carpenter, willing to do $1000 worth of labor on your property, where he may have only been willing to pay $500 for the hunting rights.  Creative solutions like these can be mutually beneficial to both parties.  Also, be sure to consider your state’s liability laws when entering into a hunting lease.  No amount of hunting income is worth the potential loss from a lawsuit.
4. Rent to Vacationers and Hunters – In addition to leasing land to hunters for longer terms, consider renting the land on a shorter term, such as week-long and weekend visits.  This approach requires a bit more marketing and active management, however if you have the time it will also produce the most value from the property.  A property with lakefront access and a two-bedroom home or cabin could be a welcome vacation for a family or hunting party.  Keep some decent furniture and cooking equipment in the cabin, have a lawyer draft a rental agreement for you and advise you on any other considerations, and put up some advertisements online in free locations, and you can probably attract a decent amount of renters.  If you decide to take this path, consider targeting a niche.  A vacation home marketed to both families with small children as well as deer hunters may be a turnoff to both parties.  Each type of renter wants to know your property is great for the activities they’re looking for, and trying to attract every type of renter could produce less results than focusing on one group of potential customers.
5. Sell Carbon Credits – This may be one of the least lucrative methods of monetizing a property, however on land with environmental restrictions, unimproved land you intend to hold for the long term, or in combination with others sources of income from the land, you may be able to make enough to make it worth your time.  This article at Oregonlive.com presents a good assessment of how carbon credits work and how much they may be worth to you.  Look into the Chicago Climate Exchange for more information on how to get involved; they are the largest market for carbon credits in the U.S. at this time.
6. Sell Oil or Mineral Rights – There are volumes upon volumes that could be written about the benefits and perils of selling oil and mineral rights on a property, but suffice to say that consulting a lawyer specializing in oil or mineral rights is an absolute must.  To those willing to venture down this path, however, there may be a large payoff depending on how the sale of the rights is structured.
7. Sell Solar Energy – This one is a little more applicable to larger plots of land, however, if you are in an area with a high cost for energy utilities, you may be able to profit by installing solar panels on your buildings or in an open area, connecting to the power grid, and selling the energy back to the utility company.  While costs will be prohibitive for many properties and different areas, this is certainly something to look into.  The cost of solar panels will continue to drop in the near future, and energy prices in the long term don’t seem to be getting any cheaper.
8. Rent to a Business or Start Your Own – There could be a local pet-lover wanting to start a dog-sitting business, or perhaps a horse-lover looking for a good place to keep a stable and rent to other horse-owners.  Or, even better, perhaps that person is you.  Leasing your property to another business, or starting a business of your own is a great way to utilize your property.  Though starting your own business is easily the most time consuming of all of the methods mentioned, it also carries the greatest potential payoff.  Be sure to carry proper liability or umbrella insurance coverage on the property, and have a lawyer draft the lease with very clear indications of what is being leased, what is expected of the lessor and lessee, and when, how, and for how long payment will be structured.  If any buildings or personal property will be used on the premises, be sure to clarify whose responsibility it is to purchase and care for this personal property, and who owns it if and when the lease ends.

Hopefully that gives you more than a few options on ways to pay for your land.  On their own, most of these methods will give you a little pocket money to cover some expenses.  However, the real power comes from combining these methods simultaneously.  Be creative and do your due diligence in any situation, and you’re sure to find a money making idea.

Anyone has heard the phrase ‘buy land, they’re not making any more of it.’  There’s a reason for the saying – land and acreage are great investment vehicles and can have huge payoffs down the road, especially for buy and hold investors.  Here’s a list of the top five reasons to invest in land:

1. For the Investment!- Simply put, land is almost always an appreciating asset.  Unless you buy property in Las Vegas or another real estate “hot spot,” land rarely depreciates.  Even more importantly, over the long term even most of the people that overpaid in the recent real estate bubble will eventually see their land appreciate past its purchase price.
2. Recreation – Even a property meant as an investment can also offer enjoyment for you and your family.  Hunting, fishing, hiking, horseback riding, gardening, and whatever else you can think of are all great reasons to own your own property for your enjoyment.
3. Conservation – Buying large tracts of land, particularly wetlands or perhaps areas surrounding other property you own, can be a good way to ensure a good ecological use of the land, or to prevent others from overdeveloping around the property you already use.  Also, large enough areas of land that are undeveloped can be used to sell carbon offsets.  While not a huge source of revenue, every little bit counts when trying to make land conservation affordable.
4. Development - This may mean multi-family properties or office buildings to some people, or to others it may mean erecting a family cabin and barn for a place to retire, whether permanently or for the weekend.  Building a custom home can create a strong bond between you and your family and the land, especially if you took part in the construction.
5. Low Risk – Aside from some liquidity risk and the possibility of buying in an overpriced area – both of which can be mitigated through long-term investment – land ownership coupled with some due diligence and liability insurance is a fairly low-risk proposition.  Inflation hedging is built into the nature of the property’s price, and there are few things you can do to the land to make it totally useless.

Investing in raw land can be a great way to develop cash flow or obtain a long-term investment, but there are a number of legal and financial considerations that need to be addressed before you start buying land. Here are the top 9 things to look out for when searching for properties and doing your due diligence:

1. Location, Location, Location: Notice that your potential property is cheaper than the acreage for sale 10 miles closer to town? There’s a reason for that, and it probably has something to do with where your land is located. Take special consideration into your purpose for the land: long-term investment, developing the location for a home or to sell, or even convenience to get to the property yourself. If urban sprawl brings the suburbs to the edge of your property, it could make a great investment, but if the point was to build a cabin and ‘get away from it all,’ you may not love your getaway when it’s down the street from the new big box retailer in ten years.
2. Physical Considerations: Is the land even usable in the first place? There’s no point in owning 100 acres of Florida’s finest swampland, or owning the northern slope of a hill with a 70 degree incline. When having land surveyed or doing a walk-through with potential architects or builders, take note of potential spots for your home or buildings you may want to put on the property, and potential places for wells, septic tanks, and other necessities. Other things to take note of: soil quality, depending on the land’s purpose, vegetation including tree coverage as well as any other plants that may be desirable or an issue later on. Is there a nice creek running through the property? Make sure that nice creek doesn’t become a raging river come spring time…
3. Utilities: So you’ve got a spot to put the house, that’s great. But without water, power, sewage, and the other requirements of daily living, you may find yourself stuck paying your own money to get these utilities connected. Find out if the property has a well – or even the potential for a well, whether or not power is connected to the property and how much it will cost if it hasn’t been connected, and whether or not there is a septic tank or if one will be necessary. If the basics are covered, don’t forget your “premium services:” is there internet, cable, or satellite service available in the area? Does your cell phone get reception? If not, how much would the phone company charge to connect lines? Thinking about these issues up front will save you major headaches if you decide to develop the property.
4. Taxes: If you’re planning on holding the property for a long time without cash flow in the meantime, taxes will be a major portion of your holding costs. Find out what taxes to expect from the county assessor’s office, what the property is appraised at for tax purposes, and what the taxes have been on the property for the last few years. Certain areas of the country qualify for agricultural or other tax “discounts,” so be sure to look into the other options specific to your property’s use that may be available for reducing your tax bill.
5. Zoning: Planning on operating a business from your home? Hoping to build a multifamily apartment building? Trying to obtain a variation on local zoning ordinances can be a difficult process (but not impossible), so be sure to understand all of the zoning laws that may affect you. Not sure where to start? Check with your city first, and county second, and they should be able to point you in the right direction.
6. Restrictions: There’s no sense in buying 20 acres to subdivide if your property is required to have a minimum of 15 acres per home, so be sure to look into every possible zoning rule that may impede your future use of the property, or that may become an issue when selling the land. Other common restrictions include size of the home, what sort of out-buildings can be built on the property, what sort of building materials may be used (i.e. brick exteriors only), and other requirements, such as mandatory fences (or no fences allowed).
7. Easements: Typical easements you can expect when looking at property include easements in gross, which are granted to other parties such as utility companies, and easements by necessity, which are granted to neighboring properties. An example of this would include the right to use a driveway to access a property, or the right to use a path on the property to access waterfront areas. There are other types of easements as well, however these are the most common.
8. Home Owner’s Associations: While you may not run across this issue with large tracts of land in the country, if you are purchasing land in a neighborhood or similarly developed area, you may run into HOA fees. These can cover landscaping, the neighborhood pool, parks, sidewalks, roads, whatever. Just make sure you know what the cost is and what is included, because these fees can get pretty hefty in nicer neighborhoods.
9. Environmental: While most people don’t have to worry about accidentally purchasing a future Superfund cleanup site, there are still environmental considerations to the purchase of your property.  If you’re concerned about potential environmental issues with the land you’re considering purchasing, you can have examinations done by environmental consulting firms, or you can start simply by having some soil tests done.  This is your call, but if it’s a big concern with the property you’re purchasing, be sure to consult an expert, or consider walking away.

Armed with the above, there’s a good chance you’ve done much of your due diligence. Keep these things in mind as you tour a property and conduct your preliminary search online, and you should be able to narrow down the field to the best investments. If you find that one or two of the above items aren’t exactly what you wanted, don’t worry too much, most of these can be overcome in one way or another. However, if you find that more than 3 of these are possible issues? In that case, it’s time to look elsewhere…