PLUS 22 SECRET SOURCES FOR FINDING THEMcontent-packs.s3.amazonaws.com/money...

PLUS 22 SECRET SOURCESFOR FINDING THEM

WHY A FARM, RANCH, OR RAW LAND MAY BE RIGHT FOR YOU

Page 2 - Why a Farm, Ranch, or Raw Land May be Right For You Plus 22 Secret Sources for Finding Them

Copyright Notice

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical. Any unauthorized use, sharing, reproduction, or distribution is strictly prohibited.

Legal Notice

While attempts have been made to verify information provided in this Publication and any accompanying video and audio presentations, neither the author nor the publisher assumes any responsibility for errors, omissions, or contradictory information contained in this document.

This document is not intended as legal, investment, or accounting advice. The purchaser or reader of this document assumes all responsibility for the use of these materials and information.

Why a Farm, Ranch, or Raw Land May be Right For You Plus 22 Secret Sources for Finding Them - Page 3

Table of Contents

Introduction

1. Prepare Yourself to Purchase

2. Know Exactly What You Want

3. Creating Cash Flow with Raw Land

4. The Best Places to Find Good Deals

5. Types of Land and Their Uses

6. The 22 Best Sources for Finding a Farm, Ranch, or Raw Land

Wrap Up


IntroductionWhether you’re in the market for raw land, a farm, or ranch, you should have a good idea of what you need to do before purchasing and how to find good deals in your area. There are a lot of great deals out there; you just need to know where to look, and what to do once you find the right property for you.

The information in this book will tell you what you need to do to prepare before buying, help you determine what you’re buying property for, give you some creative ideas for creating cash flow, give you some ideas for finding great deals, and provide you with some uses for raw land.


Chapter 1Prepare Yourself to PurchaseThere are a few key things you need to do to prepare before you will be ready to purchase a farm, ranch, or raw land.

The first, and one of the most important, is that you know how you will pay for it. In the banking world, things have changed in regards to getting a loan. It’s not as simple a process as it used to be, and for good reason. For instance, requirements are a lot more stringent, buyers need to have more money down, and when looking at second homes or vacation property banks want to see a very stable buyer. Investment property is one of the biggest risks for banks because it is not the buyer’s principle residence, and therefore the buyer is less invested in it.

1. Get pre-approved. At the very least, get pre-qualified. Even better – get pre- approved. Pre-qualified means you have gone to a bank or mortgage brokerage, discussed your income, credit, and assets with them, and have an idea of the amount of loan you may be able to get. During the pre-qualification process, no one will check your credit or confirm the information that you give them, so it’s important that you’re honest with them to get an accurate idea of what you may be pre-approved for when the time is right.

However, if you’re serious about buying a property, then skip the pre-qualification and go straight to getting pre-approved.

During the pre-approval process the lender will do a credit check, verify income and assets, and take a deeper, more thorough look at your expenses. Once you are pre-approved, you will get a pre-approval letter stating the amount that you are pre-approved for. Pre-approval letters are typically good for 120 days and will be very helpful when negotiating.


A pre-approved buyer is almost always the more attractive option because the pre-approval letter is proof that you are able to pay for the property you are bidding on. With a buyer who is not pre-approved, the seller has no idea if they will actually be able to get a loan or pay for the property. If you plan on purchasing REOs, the bank will require this letter in addition to your offer. Keep in mind when searching for a land loan; the typical maturity is 10-15 years.

2. Choose the right property. To dramatically increase your chances of getting a loan to purchase raw land, choose improved property that is zoned for your intended use whenever possible. Buying raw land with immediate plans for improvement is the easiest land loan to get because the lender knows they will be paid off when you get a loan on the structure.

3. Get creative. Consider paying for the property with a home equity line of credit or by refinancing your primary residence. By doing so, the bank will have the complete picture of your home and its value and you will experience fewer problems getting a loan.

4. Try a credit union. If all else fails, go to your local credit union. By utilizing a local bank, you will greatly increase your chances of getting a loan or a construction loan.


Chapter 2Know Exactly What You Want WhenPurchasing a Farm, Ranch or Raw LandThis might sound like a ridiculous thing to discuss, but you would be surprised at how many people know they want to own a farm, ranch, or raw land, but are not entirely sure what they want to do with it. Take raw land for instance; for hundreds of years, fortunes have been made by owning some sort of land. Not only can it be purchased very cheaply, but, with little or no effort at all, it can bring a return many, many times its original investment.

Like all committed investments, though, knowing exactly what you are buying, and why you are buying it, will greatly enhance your success. Below are a number of ways to safeguard your money and time when purchasing raw land.

1.What purpose are you buying the property for?

• Are you planning to build your dream home?

There are many construction loans available for this purpose. Make sure you choose a property with similar constructions around it. For example, you may find a gorgeous piece of property that is located in the midst of an industrial area. Although the property may fit your needs perfectly, you will have a problem finding comparables to support its value. Many appraisers will look for comparables up to 5 miles away in a rural area. That may seem far, but when you’re in a rural area, there may not be much to choose from within a 5-mile radius. This could cause a big problem if, and when, you decide to sell. What is the moral of the story? Find a property that has close to similar types of constructions around it.


• Are you buying as a long term investment?

While farms and ranches have the potential to generate income, raw land frequently does not. That means that, every month, your chunk of raw land is costing you money with taxes. Why? Land is considered indestructible. There is no depreciation. In fact, raw land is the most illiquid of all investments in Real Estate. It can take years to sell some parcels.


Chapter 3Creating Cash Flow with Raw LandUnlike farms and ranches, raw land does not typically produce a monthly income. However, there are a few ways to create cash flow with raw land.

1. Rent it out. Farmers are always looking for more land to grow crops. Renting out a chunk of your raw land to farmers is a good way to help the property pay for itself. Most of the time farmers will come back year after year, creating a dependable income for you.

2. Storage. Vehicle storage is another good way to help pay the bills. Storing a large truck or a tractor can be very costly for the owner. For instance, a friend of mine is a car collector and pays over $200 per month to store his cars, vans, and one school bus. Renting out part of your raw land for those looking to store a vehicle could end up being a very lucrative business, once again ensuring a dependable source of income. Before you get started, make sure you aren’t violating any local codes.

3. Hunting or Camping Grounds. If your land is rural enough, you might even consider allowing hunters to use it as hunting grounds or allow campers to use it. Getting away from the traditional campgrounds is very attractive to a lot of people.


Chapter 4The Best Places to Find Good DealsRaw land is one of the unique types of property that may not be advertised for sale very often, unlike farms and ranches. Make sure that, when buying from an owner, you have the property surveyed and assessed by a professional. At the very least, get a knowledgeable agent to do a market analysis on it.

Here is a list of some people and places you can go to for great deals on farms, ranches, and raw land.

1.Your local Realtor. While this may sound obvious, a lot of people forget to check the MLS first to see what’s available. This will also give you an idea of the current market prices.

2. Local Real Estate Investors. Contact local real estate investors to see if they have any Farms, Ranches, or Raw Land in their current inventory. If they don’t, join their buyers list so they notify you if anything is added that may interest you.

3. Local Tax assessor. Finding vacant land with a few years of back taxes is a great way to find a motivated seller. In most states, buyers are typically not very successful when trying to buy land through a tax sale. Rather, finding a motivated seller who owes back taxes is a much better bet. Sometimes the owner will even carry a note for the purchase price. It is a win-win for the owner because they are able to get some of their investment back, stop having the taxes accrue, and get a dependable income to boot.


4. Contact the city. Ask if they have any odd lots they would like to sell.

5. Bank foreclosures. Foreclosures are another great way to get a deal on farms, ranches, or raw land. Your local real estate agent or local real estate investors should have access to these. You can also find foreclosures using various websites online or by doing some public records research of your own.

6. The Bureau of Land Management. Since they are in charge of managing the land, they frequently know of any and all available plots of land.

7. Check local papers. When you are ready to buy, place an ad in your local paper. This is a great way to find property heirs, and elderly individuals who are looking to downsize their holdings.

8. Developers. Developers are another excellent source and can very often offer financing for your purchase.

9. Family and friends. Often a forgotten resource, your inner circle can help get the word out that you are looking for a farm, ranch, or land. Some might even have one of the three up for sale themselves.

10. For Sale by Owner signs. Drive through neighborhoods that you’re interested in and look for ‘For Sale’ signs that don’t seem to belong to anything. Most of the time, the owner is selling the extra lot that came with their house. This is a great way to become a developer without taking huge risks.

This is a good tip when looking for a farm or ranch, also.


11. The Internet. You can find tons of listings for farms, ranches, and raw land online. It is highly recommended that you check out the property BEFORE you buy. There are a lot of unscrupulous people out there. It is easy to buy an acre of land for a steal, only to discover later that it is in the middle of the desert.

12. Lastly, Federal Marshals are another good way to find seized property that can be purchased at a huge discount.

Note on buying land from big developments: Do NOT do it! This type of land is usually overpriced to pay for the glossy pamphlets, overhead, advertising, and to make them huge amounts of profit!


Chapter 5Types of Raw Land and Their UsesCompared to farms and ranches, raw land is unique in that there are three main types of land investments: long-term holdings, subdivisions and development, and speculation. We will go through all three so you can get a better idea of what is right for you.

Long-term holding is the easiest with no construction, no work at all, and hopefully no worry. When investing in long-term holdings, you buy a piece of land that is out of the way, and then wait for the growth and development to come to you. As your community grows, your land will become less out of the way, resulting in an increase in value. When the value reaches an acceptable increase, you sell and pocket the profit.

The challenge that comes with this type of investing is that you are never sure when the growth will reach you, or even how much the area will grow, if at all. Long term investing is a good way to go if you have money to invest and are sure you will not need it for a very long time.

Subdivision and developing is a time, expertise, and money hungry venture.However, while the profits can be extraordinary, so can the problems. In fact, few real estate investors choose this route because of the huge upfront investment. If you’re one of the lucky few that have the required knowledge and necessary funds, this can be a very lucrative venture.

A good way to approach subdivision and developing is by purchasing a small plot of land that can be subdivided into several more lots. This strategy works very well when there is a house already located on the property. Used as a rental, this can help off-set some of the upfront costs that accompany investing in subdivision and developing.


Land speculation produces a much faster return on your investment. If you see some type of growth, development, or change coming, there will be a greater demand for the land, therefore increasing its value. By using options to purchase, and other creative forms of buying real estate, the speculator gains control over the property in order to profit from it. It should be noted that few speculators use their own money to buy the properties and land speculation is a bit risky.


Chapter 6The 22 Best Sources For Findinga Farm, Ranch, or Raw LandBest Sources for Investors

1. www.realtymogul.com – This is one of the most buzzed about real estate investing approaches available in the current market. They’ve established a system in which accredited investors can partner up to fund large deals together. For those who embrace the ways that collaboration can propel their bottom line, this should be your next bookmarked site.

2. www.benutech.net – This is considered one of the finest lead research tools available. Its sophisticated system helps collect and filter numerous “seller triggers” into an impressively accurate and targeted list of “hot leads” for an investor to target. It even allows you to further filter based on what leads have already been listed, giving you unprecedented “laser focus” on the best deals.

3. www.gsaauctions.gov – This is an auction site for government owned property. You can click on the REAL ESTATE button on the home page to view and sign up to bid on any properties of interest. You shouldn’t be surprised to learn that a government site has some unique quirks of the “red tape” variety, but you can find one-of-a-kind investment opportunities here as well!

4. www.myhousedeals.com – The deals on this site are coming from other investors and must have room for at least $15,000 in profit before they can be listed. Because of this, this site is an especially great resource for investors who have a smaller pipeline of deals and are trying to grow. Benefit from the surplus inventory of your peers!


5. www.rehablist.com – On this site, you pay a $39/month membership for daily updates from the tax rolls, government agencies, and notices of lenders legal actions. This is another great way to get yourself to the front of the line when incredible prospects emerge in your market!

6. www.homelight.com – For many investors, finding the right agent to work with in a particular market is crucial. Because HomeLight is referral based, it has a great reputation for playing “REI matchmaker!”

7. www.homefinder.com – The specialization at homefinder.com is in foreclosed homes, rentals, and potential lenders. Because of this, this site is another unique avenue to refine your search efforts and direct your time and energy toward more strategic investments.

8. www.williamsauction.com – Imagine being able to bid, in real-time, on auction properties available worldwide! Well, no need to imagine, this easy resource has made it real (and simple).

9. www.10kresearch.com – This site is not strictly for finding deals, but is about getting the best information on market conditions to allow your marketing to be more targeted and effective. This is adding some real precision to your efforts and can be customized to your unique needs for just about any market.

10. www.corelogic.com – This is another great “research to find the best deals” approach. It’s good to have choices and to look for the “life inside the numbers” that help guide what markets you target, what to spend where, etc.


Best Sources for Homebuyers and Investors

1. www.hubzu.com – Hubzu is quickly revolutionizing the home buying process for the 21st century. They have a simple, user friendly process that supports finding, purchasing, and closing on properties entirely online.

2. www.auction.com – This is the Nation’s Leading Online Real Estate Market Place. The variety and sheer volume of opportunities here, coupled with its ease of use, have made this resource a global leader as a growing group of international buyers have recognized the power of this tool.

3. www.homes.com – This site makes it extremely quick and easy to scan its 3 million or so unique listings. They do a nice job of keeping things simple, while providing relevant detail where you want it (mortgage rates, school info, etc.). With over 700 MLS organizations represented, they comfortably claim coverage in 95% of our US markets.

4. www.realtytrac.com – With a reputation for accuracy and consistency, and over 20+ years in business, this site does a great job of mixing buyer/seller interaction with strong, well-organized training and education materials. The listings are an especially unique mix of foreclosures, bank-owned homes, FSBO, resale properties, MLS listings, and auctions. 5. www.keyzio.com – Sellers and buyers alike have been flocking to this site, primarily because of the speed and simplicity of setting up a unique profile and communicating with others. One of the most exciting features here is the opportunity to browse listings before and after they go on the market, giving you that much needed competitive edge.

6. www.ready4remodel.com – This is a very unique website that specializes in pre-inspected properties that are specifically identified as being ripe for the remodeler. Even if the additional services, which help you pursue financing and renovation assistance, aren’t of use to you, this is a great place to look for fixer-upper properties!


7. www.trulia.com – Trulia has helped pioneer the purchase and sale of real estate online and has stayed at the forefront of the industry through their commitment to staying ahead of the trends and perfecting their approach.

8. www.realtor.com – This site is brought to you from the National Association of Realtors. As you can imagine, the site has the scope and depth that comes with access to over 800 MLS services across the United States. Each listing includes comprehensive details and pictures so you have a clear picture of the property that you’re looking at.

9. www.Homes.yahoo.com – This site is popular among homebuyers and investors because of its abundance of homes for sale, foreclosures, and new homes. It even allows the homebuyer or investor to narrow their search by zip code.

10. www.redfin.com – Redfin has gained recognition for their decision to have in-house agents, which has yielded impressive buyer satisfaction results. More importantly, they really pride themselves on a unique ability to save buyers thousands of dollars per deal in fees.

11. www.zillow.com – Zillow, like Trulia, has a proven track record and brand recognition behind it. They also claim over 100 million listings and rentals, which is a singularly impressive inventory among this group.

12. Realestate.com/listings/forsale/ – This is yet another site that that is good for investors and homebuyers alike. It boasts an abundance of homes for sale, new constructions, foreclosures, and even rentals.


Wrap UpAfter reading this, you should be able to answer a few questions about what you want to buy, what you want to do with your purchase, how you plan to purchase, and what you will do to create cash flow with your property if you’re so inclined.

Why A Farm,Ranch, or RawLand May beRight For You

Date post:	12-Jul-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

PLUS 22 SECRET SOURCES FOR FINDING THEMcontent-packs.s3.amazonaws.com/money...

Documents