Start Land
Start Land
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US $2.74
Buy Land Now!
Buying land is a fun investment you will enjoy. Purchasing rural land can be a good investment that will bring you and your family years of enjoyment, then later can give you an excellent return as an investment. That's the reason so many people are converting funds invested elsewhere to money in land. Just think about it, if you are a city dweller haven't you thought how nice it would be to own a little place just out a little ways from all the traffic, pollution and noise? A place you could go and spend weekends or holidays and de-stress a bit?
Land can bring you joy as a recreational venue, and with enough land you can create an extra income for additional investment returns or profits. You can start a part time cattle or livestock business, or you can lease your land to a local farmer on a share basis to pay your taxes. That's the great thing about putting your money into land, it's a very versatile investment.
Finding Land-- Wondering how to get started? With the economy the way it is lately, land is being priced more reasonably. If you are just getting started with real estate investment, you will probably want to start out with a small parcel of 15 to 50 acres. If you live in a large metropolitan area you can check with a local Realtor in your town, tell him what you're looking for and get him to search his MLS (multi listing service) listing data base. The data base in metropolitan areas normally includes most of the surrounding counties, which should cover the area about an hour's drive out from town.
On the Internet there are more and more rural newspapers that publish their Headline stories and Classified Ads on the net. Make a list of the small towns surrounding your location and look through those papers on the internet for properties.
In Texas, a great place to look for small parcels at a good price is the Texas Veteran's foreclosed land auctions. You can find information on all Texas Veteran's Programs on the internet. The Texas Veteran's program is for people who have served at least 90 days active duty in the service, including Army Reserves and National Guard. Check this site out even if you don't qualify because you can still bid on some of their foreclosed properties. In other states check with your state Veteran's groups for similar programs, there are several available.
Financing -- Financing land is different, I'll show you what is available then show you some alternatives that may be available if you are creative. Land loans are limited and sometimes difficult to find. One of the best sources is the Federal Land Banks, they make funds available to farmers and ranchers as business loans. They also make land loans. I recently checked in my area and they still have land loan funds available. They normally require 20% down and interest rates are a point or two above residential loans. For very good credit you can do a little better with 15% down and interest a little lower.
The Texas Veterans Land Board also has a land loan program with loans up to $80,000 and with 5% down payments for Texas Veterans who qualify under the terms I mentioned earlier. Those programs today are going to require a FICA credit score above 700, meaning you will need pretty good credit to qualify. If your credit score is lower than 700, don't give up because there is another possibility other than paying cash. This option is owner financing, and if you have a good experienced Realtor, he may be able to work something out with the seller's agent or work it out directly with the seller if it's his listing.
Here's a way you or your agent can convince the seller to carry the loan for you. Ask the seller what he plans to do with the proceeds of the sale after it closes. If he indicates that he's going to put the money in the bank, you may have an opportunity open to you. Currently Certificates of Deposit are paying 2.05% interest on a 6 month CD and up to about 3.50% on a 5 year CD. Instead, the seller could finance the sale, with you making regular payments with 7% to 8% interest, which would more than double the money he would be getting from the bank. The property would still be his security until the loan was paid off. If it's being sold through a Realtor he will probably want 20% down to cover the costs of the sale.
It is a great time to be buying land and I hope you are able to find some, it's not only a good investment, it's something that could bring a great deal of pleasure into your life.
About the Author
W. K. Winn is a Licensed Real Estate Broker with many years experience buying, selling, investing in, marketing and developing real estate properties. For more tips from W.K. on buying, selling or investing in real estate, go to http://www.myrealestatetips.com/