LAND PRESS

OWNER CARRY OR FINANCE

Gina Gamma — Mon, 04 Feb 2013 21:04:34 +0000

In today’s market not everybody has the A+ credit or perfect job history that the Traditional Lenders are looking for. This doesn’t necessarily mean the Buyer is a high risk! It could be that Buyers are just self-employed, or are Independent Contractors and they tend to have a different way of reporting their income. Perhaps they are the types who do not want to have a large debt ratio on their credit history because they need to tap credit lines for their small business. And again, maybe they did go through a rough patch during the recession and now they have gainful employment and want to start building their credit back up.

If Owners/Sellers want to open up their property to the biggest pool of Buyers then they will look at this potential option. I will start out by saying there are things to watch out for in these situations on both sides, and the following is not to be construed as legal/tax advice.

There are really two ways to do an Owner/Seller finance, and I want to address the fact that I do not recommend and will not handle any type of transaction that is not back by an actual DEED! This non Deeded transaction, is where you sign a Promissory Note, and they get/give something akin to a title. With this type of Financing, as a Buyer you do not always get a Warranty Deed, ensuring the Seller has free and clear title. Even if the land is free and clear, as a Buyer if you are late one month or miss a payment or two then the Seller can simply take the land back without the protections of the State of Colorado’ s foreclosure laws.

As the Seller, you do not know if the Buyer has used this land as collateral for something else. Or did a trade for a tractor, or leased the land to someone and they overgrazed it with too many cattle. They could have committed a crime on the property, or used it for any number of illegal activities. Etc. Etc!

The other way has much higher success rate for customer satisfaction! This is done with a Contract to Purchase, where the Buyer has the opportunity to review a Title Insurance Policy, and documentation related to the property before they close! This could include any leases, side agreements with friends or neighbors, property disclosures, maps, surveys, covenants, zoning restrictions, liens and encumbrances and more. You also get a Warranty Deed which ensures free and clear title and sign a Promissory Note and a Deed Of Trust, with all the conditions of what happens if you are late one day, or two months. You can also save several hundred to several thousands of dollars in lenders fees!

And as the Seller you get the opportunity to review the Buyers credit application, run a full report, and get ample time to ask further questions or request references. There could be tax benefits/advantages based on the structure of the loan, or capital gains recognition. The Deed of Trust is recorded with Public Trustee so there is public record should the Buyer attempt to sell or negate the Note in someway. No questions regarding what happens when or if they don’t pay, rules for late fees and foreclosure is all spelled out. You get access to a larger pool of buyers, and most definitely make a higher profit then just the sales price based on earned interest, and likely at a higher rate then any bank is paying today!

These types of financing are something where the terms are negotiable between Buyer and Seller along with all the terms of a contract. Buyers, make the down payment higher than standard 20% so the offer looks attractive to the Seller. Offer them a half a point higher then what the banks are asking for. Make it interest only payments for a year or two! And Sellers, offer to carry the note on a short term, so you are not waiting a lifetime to get your money. Find a local bank that will handle the escrow and disbursement of the funds so you don’t have think about the dates.

So be open! Ask Questions! Weigh the risks! Make a list of pros and cons! Talk to your preferred Specialist, be it Accountant or Attorney! See if it could work for you! In today’s market it is time to think outside of the old box.

Happy Trails to YOU!

Gina Gamma
Owner Managing Broker
Colorado Mountain Land Realty Inc
1-719-564-8329
www.ColoradoMountainLandRealty.com

Owning Land Has Many More Benefits Than As An Investment

Bob Atkinson — Wed, 17 Oct 2012 16:37:17 +0000

Today, more than ever, land is something most people would really benefit from having. For the growing family, the recreational farm or weekend get-away is just a dream for most people.

Instead of thinking about how expensive a 1-5 acre lot in the city is, you need to consider buying 10-25 acres about 30 minutes to 1 hour away in the rural areas. Many times this land can be purchased for about $5,000/acre and the owners will finance it with 10-15% down and 5% interest with flexible terms. For example, let’s take a 25 acre parcel for 5k/acre or total purchase price of $125k. The down payment could be as little as 5k to 25k and interest only payments of 5% .For example say 15k down on 125k leaving a loan balance of 110k or $5,500 interest annually or $458/month. This 458$ is less than a new SUV OR TRUCK payment but consider what you now have. The vehicle will be fun and great for vacations and outdoor work but will only go down in value. The land can become a great place to escape, or recreation for family and friends, and better yet a great place to share with children and grand children.

I personally did not grow up in a rural environment but had an uncle who was a wealthy timber man. I visited his farm and played with him and my cousins. They had cows, chickens hogs and horses. They were not near neighbors but knew everybody in the county. From this experience, I learned the value of hard work and the benefits of owning nice rural land. After college and pursuing a corporate accounting career for several years, I heard the land and the real estate business calling. Like most people, I started out selling homes in residential real estate for about 5 years before I was able to by my first tract of land. Actually, I listed the land to sell it and after 12 months it had not sold and the owner was retired and really wanted to sell it. I asked her if she would sell it to me and finance for me so she could have a monthly income. She agreed and I became the owner of a 65 acre farm on the edge of town. The place was overgrown and you couldn’t even see the 2 acre pond. It had many overgrown and dilapidated outbuildings. I had no idea where to start but had a friend with a chain saw and he loved to do physical labor. For about a year, he and I worked every chance we could and in just 30 days, the place began to shine. To make a long story short-this led to many more properties and a lot of fun in life with my friends, colleagues and family.

Today, I still have the recreational family min-farms (fewer than 35 acre farm size) and actually spend a lot of time encouraging other people to do the same. On top of everything else, this can be a great retirement fund vehicle. It will allow for relaxation, accomplishment and great exercise which we all need. Also, we have learned to become organic small farmers and this may really become important in this volatile world we now live in.

In the grand scheme of life, if it costs $1,000/month to have the land, it is really worth it and most 2 income families can afford it if they eliminate a lot of unnecessary extras they really don’t need.

Experts in Land and REO Properties

BOB ATKINSON, G.R.I., C.R.S., R.E. INSTRUCTOR
ATKINSON PROPERTIES GROUP
3001 US 64.
APEX, NC 27523
Phone: 919-362-6999

www.landinvestment.net

Foreclosure Stayed-Parties Optimistic

tnland — Fri, 03 Aug 2012 15:53:58 +0000

Attorneys for John “Thunder” Thornton’s Tango November LLC and Chattanooga Ag Credit met in Marion County Chancery Court on July 9. After a long day of arguments and evidence, Thornton’s company was rewarded with an injunction that sent the parties back into negotiations. Decisions in Chancery Court are often made on the basis of conscience and fairness.

According to Dane Bradshaw, president of Thunder Enterprises, the developer of Jasper Highlands, “The judge [Chancellor Jeffrey F. Stewart] ruled an injunction in our favor stating that Ag Credit breached the forbearance agreement that we had, in place with them.” He added, “We are pleased with the Chancellor’s ruling.”

As previously reported in The Jasper Journal (See July 3 edition) Thornton filed suit in Chancery Court to block the scheduled public auction of the Tango November LLC property claiming that the lender had “acted in bad faith with unclean hands.” Thornton was granted a stay which blocked the foreclosure and the July 9 hearing was scheduled.

Chattanooga Ag Credit recently merged with a Kentucky Co-op and became River Valley Ag Credit. There has been discontent about the merger expressed by a few Chattanooga members of the co-op, and there is speculation that the out-of-state partner was less concerned for local development and job opportunities.

In January of 2008 Chattanooga Ag Credit loaned a little over $10,000,000 for the purchase of the Jasper Mountain acreage- The language in Thornton’s lawsuit said that because of a poor economy “the loan was in technical default,” but Thornton had made arrangements to pay down the debt.

Although Thornton previously stated the project would “have no impact” on the Jasper Highlands development, it did affect Marion County citizens for two reasons. It would possibly block the proposed construction of an organic vegetable business, which Mayor Graham has said would bring a significant number of jobs to the county. For this reason, the mayor also filed an affidavit (See July 3 Jasper Journal, page 2) in an attempt to exclude the property designated for a hydroponics project. The mayor and others were convinced the project would build on Jasper Mountain. Both the altitude and the location on the northern side of the mountain make it an ideal location for the project, and other local individuals have worked to bring the project to this area.

Also, the entire 9,000 acres that would include both Jasper Highlands and the Tango November LLC property could result in as many as 3,000 homes on Jasper Mountain with related local businesses, a significant tax base for Marion County. Bradshaw pointed out that the approximate 800 acre development of Jasper Highlands is a large and significant development on its own. Phase 1 and Phase 2 of the Jasper Highlands development are said to be on schedule and selling well. Although the Tango November LLC property is not directly related to the developments of Jasper Highlands, it is almost certainly significant for Thornton’s long term development plans for Jasper Mountain. The overall development has been compared to Signal Mountain in size.

There is no word on a potential timetable for the pending negotiations. Marion County recently completed a long process of approving a bond for construction of a road for the Jasper Highlands project. Although Mayor Graham and a representative from the hydroponics project were in court, no special provision has yet been made for the company, which would seem to leave the project’s fate dependent on the attorney negotiations. The future of the hydroponics project seems to be dependent on the attorney negotiations.

By Jerry Hookey
Staff Writer
Jasper Journal

Real Estate Scams Getting More Popular

Jeremy Moore — Mon, 22 Nov 2010 15:43:25 +0000

I have several properties I list and keep active. Of courseI add new ones as I get them. I have recently been indirectly affected by a scam. I have found out that one of the properties not my listing but I advertise it has been hit by a scam. Someone posing as the owner”who is by the way in AFRICA….what a surprise…”(the real owners are not in Africa) is trying to convince people that this property is for rent. They are requesting that money be send to them to rent this home.

I have had to add a blurb to my listings and on my FB account and my FB Business Page that I am not in the business of renting out properties. I am in the business of Selling them.

Real estate scams are getting more and more popular. A common real estate fraud is renting a property without the owners consent. The uninhabited recently inherited and otherwise unguarded property is the most likely target for such scams. The most innovative thieves are able to even rent the same property to several people at the same time. Like this case I have mentioned the home is usually rented without an actual viewing but via pictures usually ones put on by the Real Estate Agent trying to sell the property. And the money is wired to the “owners”.

People, please do not wire money to anyone. And always go and knock on the door of the home you wish to rent just to be make sure it is available and authentic. The owners may be surprised to see you standing there,suitcase in hand,trying to move into their house.

The imagination of these scam artists is unlimited and most of the time we can’t do much more than minimize the damage they inflict. All of us need to become aware of the real estate scams and be able to protect ourselves and/or someone you know. Consumers beware !

Jeremy Moore
Sales Respresentative
Century 21 United Realty*
www.century21.ca/jeremy.moore

So… What’s Your Land Worth?

Gina Gamma — Wed, 01 Sep 2010 20:57:13 +0000

OK , now don’t shoot the messenger here…but I can almost guarantee it is not going to be the first number that popped into your head! But wait! YOUR land is the best, the greatest…most beautiful..most desirable property out there! Well of course it is, or you would not have made the leap and signed those papers when you bought it

With the caveat that in Colorado, the law does dictates that the seller has the final decision on what they want for their land, I can say with most assurance that the value of your land .. is based entirely on what a buyer is willing to pay for it!

We do use some benchmarks to get an actual and current market value. Let me share how I determine what that current market value is. I use a three legged approach, by using only those properties that offer similar features, views, trees, amenities, water (if you are lucky to have it), utilities etc.

First I use any past sales for the last 6 months, and if we can not find at least four or five sales, we will go 12 months (which for 35 tracts of mountain land will likely be the case). I use past sales, mostly because this is what an appraiser will do when you sell your land to a buyer, as the buyer’s lender will require it. If there is no lender involved it is still a great indicator of the current buyers mind set.

Second, I check and see what else is on the market currently. With rural, vacant land not all properties are posted in the multiple listing services. So it is important to include local developer properties, perhaps FSBOs, and even smaller independent real estate companies who don’t have access to listing services. Any and all property that is in direct competition with your property will be factored in.

Final and the most important aspect, is the psychology! Is it a Buyer’s market? Are you competing with highly motivated sellers? Are there five properties on one road we need to drive by when showing yours? High percentage of properties on a particular ranch on the market at one time? Are there some very rare aspects of your land we can consider? Water, walk into public lands, expansive snow capped mountain views? Is “time to sell”-vs.- “top dollar”, most important to you?

What you will notice about the above process (other than it is it is a bit different than a home valuation process), is that I did not mention how much someone wants to net, or make on.. their land. There is no mention of a “need to break even” amount, if there was interest paid on a note, or if there are improvements that were made that they are trying to recoup costs on. Fact is, if I do not already know I will not look up what a seller may have initially paid for a property either.

Because frankly folks, although those factors may be very important in determining whether or not now is the best time to put your land on the market, they really do not have an impact on what any current market will bear. Economic conditions, more aggressively priced similar properties, over all “buyer traffic”, and the amount of property available (supply and demand), that may have features and benefits that are along the same line as your property, are much more a factor in determining market value.

Most any agent can do factual checks from a computer, but when it comes to the process of finding a realistic market value for your land, it does make a difference to find an agent with experience in marketing similar properties in the particular area where your land is located.

If you happen to have property in Pueblo, Custer or Fremont Counties, feel free to contact me directly for a personalized and up to date, market value on your property.

And as always…Happy Trails~

Gina Gamma
Owner Managing Broker
Colorado Mountain Land Realty Inc
1-719-564-8329
www.ColoradoMountainLandRealty.com

Finding Rural Property To Suit Your Needs

Leanne — Wed, 14 Apr 2010 16:13:23 +0000

Many people dream about owning their own piece of rural real estate. Some are looking for a get-away for recreational use, while others are planning to move and live on their land. As you might guess, buying the first piece of land that you find and packing up and moving there to start a new life is not realistic thinking at all. There are many different factors to be aware of when choosing what kind of land you want, depending on what you want to do with your land. It is very important that you are aware of these factors as you look to buy rural real estate!
First, you must have a clear picture in mind of what you want to do with your property. Rural real estate is used for all kinds of things: farming, horticulture, recreation, living, etc. Knowing exactly what you want out of your piece of land will obviously inform you of what kind of land you should buy and the resources that you will need. For example, it is not enough to just know that you want to graze animals on your land. For this purpose, you will not only need pasture-type land, you will also need animals, access to water, a fence, shade for the animals, etc. If you want to grow vegetation you will need to research the different soil types, and make sure the land that you are looking at has a slope, drainage etc. It is very important to find out whether the property you are investigating will accommodate ALL your needs.
After you make sure the land you are looking at accommodates all your needs, look more into the land’s resources. How much does the water supply cost? Depending on your use of the land, you might need a large supply of water, and water supply costs can be high in some areas. Does the local area require that you have a license to store and irrigate water? What about the waste and garbage systems in the area? Find out about the local sewer system and garbage disposal service. These are the type of questions you need to ask about your future property.
You also need to look into the area’s laws and regulations having to do with real estate. Depending on what state you are in, there could be land management guidelines and catchment plans. These kinds of restrictions are often placed to protect the environment and the land. These regulations could be things such as control of weeds, vegetation clearing, animal health, quarantine, etc.
Of course there are other kinds of resources that you need to invest your time and money in. There are setting up costs, managing risks, maintenance, and infrastructure. You could also benefit from taking courses that have to do with what you are trying to do with your land. There are courses on land management, chemical use, farm and environmental management, horticultural production, etc.
Owning rural property is something that can be fun and rewarding. Investigate and research your land THOROUGHLY before you buy it, and this will help you tremendously in the future. Be aware that if you buy land, you have the responsibility of taking care of it, which requires time and money. Use the search bar on LandSaleListings to look for the type of land that meets your needs!

source: UMCCC

Tips on Buying Hunting Land

Leanne — Fri, 26 Mar 2010 16:49:51 +0000

You want to have greater success hunting and you are looking for ways to do that. One option is to buy your own hunting land. There are definitely benefits to having your own property to hunt from. You have control over your land and you don’t have to worry about having to work with others to make things work. The biggest advantage to owning your own land is the freedom that you have over it.
However, there are disadvantages to owning your own land. It is expensive to buy and it takes a lot of time and money to manage it. With owning your own land comes the responsibility of taking care of it. Also, the best hunting properties, which is land that encompasses several home ranges of deer, are usually incredibly expensive.
If you can’t afford the biggest and best hunting land, don’t give up the idea of owning your own land just yet. There a few good tips on buying land that aren’t too expensive. First of all, buy land that is close to where an already well managed deer property is. Remember the saying, “birds of a feather flock together”. You will have the most success doing this; you and the owner of the well managed land will benefit. Second, look into the 1031 tax exchange. Basically it “allows you to sell one piece of real estate and replace it with another one while deferring capital gains tax and recaptured depreciation to a later date when you choose to cash out of your real estate holdings”. This can be a good way to make the most of your money.
Check out LandSaleListings hunting land for sale!

Source: buyhuntingland.com

Good News! Expected Rural Economic Growth in Midwest

Leanne — Fri, 19 Mar 2010 16:54:07 +0000

Earlier this month, bankers surveyed the economic situation in the Midwest and found that the Rural MainStreet index is the highest it has been in two years. The Rural MainStreet index is based on a scale from 0 to 100 and the survey showed it to be currently at 47.4. For about sixth months it had been steadily increasing and compared to last year’s (2009) index in March, it has doubled. It has been below 50 for about 25 months. Anything above 50 indicates economic growth.
Although the economy is still weaker in rural areas that in urban areas of the country, based on this survey, improvement has been seen as the numbers have been increasing. The bankers who ran the survey also reported that farm and ranch values have seen growth. However, the index for farm equipment has dropped.

Check out LandSaleListings rural land for sale in the Midwest!

source: Omaha World Herald

Is Organic Food Really More Nutritious?

Leanne — Mon, 15 Mar 2010 16:16:31 +0000

In recent times, organic farming has become increasingly more popular and the demand for organic food has also risen. However, there is debate on whether or not organic food is actually more nutritious than non-organic food.
Scientists have tested non-organic and organic potatoes and have found that organic potatoes have more vitamin C and potassium than non-organic potatoes; however, they have less calcium and iron. Last year, a British study tested the difference between non-organic and organic food and concluded organic food wasn’t necessarily more nutritious than non-organic food.
There are a lot of good reasons to eat organic food; by eating it you support organic farming which is better for the environment and you also avoid eating pesticides. However, if you are eating organic food for nutrition reasons, you should question whether it is really more nutritious than non-organic food.

Find Organic Farms for sale on LandSaleListings here!

Source: CTV News

Hot New Real Estate: The Island of Hainan in China

Leanne — Wed, 17 Feb 2010 17:28:46 +0000

Hainan, an island in China, has recently seen a boom in real estate prices due to China’s recent announcement that the island would be developed into an international tourist location. In the last five weeks, real estate prices on this small island have jumped by about one-third their original prices.
On the whole, China’s real estate prices have spiked. In seventy of China’s major cities, prices were up by 9.5% from the previous year. Developers are especially interested in the island of Hainan because of the recent golf courses and five star hotels that are being built there. There has also been talk of the government loosening their policy on casinos for the island of Hainan. The island, in attempt to attract tourists, might become the first territory outside of Maccou to allow casinos.

Source: MarketWatch.com