RULES TO TRUMP THE LAND

1. ALWAYS buy low and sell high. This is one of the oldest and surest ways to make profits from your real estate investments. If you have truly done your research before making your offer to buy, then you already know if the Seller is asking a low or high price and why.

2. Never buy on EMOTION! If you actually want to make a profit, as opposed to just hoping for a profit. When buying for your personal residence there is extensive leeway with this rule. I always advise clients to make profits on their residence, if possible. It is very important to live where your family is most comfortable. Buy the cheapest or ugliest house in the most expensive community you can afford. Fix it up over a few years and you will profit every time. If you buy the nicest home with the highest value in the community, you will have a difficult time gaining a profit when you resell. If you remember years back, there was a book titled "The Millionaire Next Door". The above concept was taught to me by this book and it works, every time. Years later, the same author, Dr. Stanley, wrote another book titled "The Millionaire Mind". After surveying hundreds of millionaires, one of the common traits among financial successful families was that they always followed this rule.

3. USING AN ESCROW COMPANY OR ATTORNEY IS VERY IMPORTANT. Either works about the same. In fact, an attorney will usually set up an escrow account anyways (required by law in some states). This is the best way to track your money. Deposits, payments and closing funds. You will also receive an accurate written record for your files and taxes. Also, if new forms need to be produced during the transaction process before closing, either may be willing to handle this for you. Escrow companies and attorneys are also highly respected by the courts, if there is a problem or disagreement during the purchase or sale of your property. Even most real estate agents and brokerages use one or the other.

4. GETTING HELP. Most real estate agents sell homes and some sell commercial property. But, very few sell land only. I have been involved in over fifty million dollars($50,000,000.00) worth of land transactions. We have already been through the "school of hard knocks" in Land Sales. As we have all learned, it is best to get the help of an expert when possible.

Some of us dream of winning a million dollars. Some of us want to win a car.
But, everyone wants to own Land!

Did you know? This is one of the main reasons the American colonists left Europe and settled in New America. Most people could not own the land they lived on, worked or farmed on. Aside from the "Gold Rush," it is also the main reason the West Coast of America was settled. Way back in 1850, Congress passed the Oregon Donation Land Law. This law allowed individuals to claim 160 acres of Land! They could also buy extra land for $1.25 per acre. Wouldn't you love to have that deal now? Once the Railroad arrived on the west coast and Tacoma in 1873, the "Land Rush" was on!

Most any person or family that can afford $200.00 to $1,000.00 per month can actually own their own Land. It is easier than most people realize. Especially in this economy. Sellers will be more willing to agree to Owner Financed Contracts. Meaning that even if you don't qualify through the bank or don't want to use a bank, you may not have to. You would make payments directly to the Seller. Although I always recommend that payments be made to an Escrow company, then the Escrow company will forward the payment on to the Seller and other lienholders.

Once you find that special piece of vacant land you want then you must:
1. Research all the information and documents you can find. Such as past surveys, wetland reports or permits, etc.
2. View or walk every foot of the land looking for problem areas, ie: hazardous wastes, wet or boggy areas, installed utilities, problem neighbors, etc.
3. Check with the governing authorities such as the county or city.
4. Check on financing options.
5. Write a Purchase Offer.
6. Negotiate with the Seller.

If you are very experienced in real estate and have purchased many properties, you may be fine going through the above steps on your own. But, in my experience, even the very experienced Buyers that have been involved in multi-million dollar transactions, seek and listen to the advise of specialized experts. Such as septic designers, wetlands experts, survey and engineering firms, attorney's, accountants, real estate agents and others.

Most real estate transactions still happen through real estate agents. But, representing land takes a specialist. Real estate agents are typically divided into three categories: Land sales, home sales and commercial sales. Most real estate agents sell homes. Some sell commercial. But, few sell land only.

I was an active real estate agent for over 10 years. In that time I helped sell or buy only three homes for best friends and family. But, I was involved in over Fifty Million Dollars ($50,000,000.00) of Land only transactions. I have seen over 800 new homes built on Land I have sold. I didn't enjoy going into peoples homes but, I love walking on and showing Land. I truly enjoy visualizing what will be built on a Property and enjoy the reputation that real estate has given me. I enjoy helping clients build their dreams. I help with the planning stage and the process of dealing with City and County or State entities.

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1. Tax Benefits.
You can not depreciate undeveloped property. The IRS code only allows for depreciation of the improvements on the property and the contents separately. Depending on the tax bracket you fall into this one advantage could save you a lot of money.

2. Income.
Vacant land does not generate income unless can you can lease it out to a farmer or for storage or as a parking lot. When you build on the property you now have created a steady revenue stream coming in even when you are not there. Depending on the type of improvement you could even make it a business and write off even more expenses.

3. Net Worth.
Typically it can take a year or longer to build a home or commercial structure on a piece of land especially when you take into consideration the time it takes to get all the necessary approvals from al the local authorities. By the time you get the project finished and depending on the market you are in the property will be worth a lot more than you owe on it which will greatly increase your net worth.

4. Resale Potential.
It is usually a lot easier to sell a finished product than it is a vision of what could be. This is why building spec homes has become so popular. People just don't have the time or the desire to make all the decisions involved with a building project from scratch. This works with commercial properties a swell as community developments and multi family like condos and town homes.

5. Leverage.
If you own the land outright or have a good bit of equity you can typically borrow 100% of the cost to build from the bank. Once the project is complete you can pull the equity out of the property tax free. This is a great strategy.

As the property continues to grow in value you can refinance and cash in. The best part about this strategy is you get to keep the property. You never have to pay any taxes unless you sell and then you do a 1031 exchange at that point and still avoid paying the taxes.

Alpha Land Realty
Address: 205 S Main St #666, Culpeper, VA 22701
Website: https://alphaland.realty/sell
Phone #: (866) 279-3335
Google Folder: http://mgyb.co/s/Dy5ua
Twitter: https://twitter.com/AlphaLandRealty