All Forum Posts by: De Rasche

We dabble in this world.

Horse or cattle leases, check on insurance and assess risk if riders (kids fall) and if horses on road with a collision.  Who breaks ice in winter if winter storm?

Trailer parking or RV if a need in your area may be a cash cow.  Brother in law does this and is cleaning up.  Security Fence, zoning, cameras, etc.

Lease to gardeners, hunters (insurance), or sell hay off of it.

We buy bigger sections with plenty of road frontage and sell off part at a higher price per acre to pay for the part you keep.  Look for land with a home that can be rented.  Economy of scale buying.  Buy the whole pie and sell off slices.

Joe,  We land bank farms in the path of cities and jobs for investments and enjoy in the interim.  We have enough income we don't have to have the rental income nor the parts of rentals we don't desire.  That allows us to wait 5-8 years on land to sell as a whole teh aprpeciated land as the city expands or by us selling off in smaller acreage sections if road frontage allows, etc.   Buying the whole pie and then selling slices.

In your situation sounds like may be more recreational or personal residence use.  Generally, if the adjoining property helps your road frontage, protects the original investment from a neighbor hurting our land value, and maybe we would buy if it was not next to ours anyhow because of location in path or urban or jobs.  Then we add.  The term is:

Plottage is the increase in value realized by combining adjacent parcels of land into one larger parcel. The process of combining the parcels is known as assemblage. Generally, the value of the whole parcel will be greater than the sum of the individual smaller parcels.

Send a survey or landglide picture of your land and the land joining it to a developer friend you have and ask "in your area is this better for a subdivision one day?" and if so, do the math on the future lots compared to the purchase price.  Or post pictures on this thread for opinions from those more experienced in this realm. 

Good for yall.  You basically brrr'd the land.   

The sewer was your hero as with it you didnt have to have the minimum land per lot for a septic.

Guess you could just follow the city sewer crews and buy any land that gets within reach. haha

Ask an expert on here or one referred that can expound as I have only been involved in a few of these. 

You used to be able to do a reverse 1031 to solve the issue for a CONTRACT on the target property, but will have to align the closings to fit all the 1031 windows for the target INVESTMENT property CLOSING.  The fee for a reverse 1031 is extra.

Used to be able to merge more than one sale into one investment or one sale for more than one target purchases.

Under previous admin. there was proposed a way to "try" and lease INVESTMENT property for a year or so and if not able to make it as a n investment, then convert to a PRIVATE residence, but key word is previous.

Hoping someone in the current know clarifies this for you and me.

Will be interesting to see what those with more experince post on this.

We are exploring a "builder" get the loan in our area, and the prebuilt part is under his loan.  THen the prebuilt part (living area ie modular) is as if he was buying rafters pre built.  We can get a loan here for an existing modular or new new prebuilt with our zoning if put on conventional slab.  Rates are not as nice.

Our issue here is starter homes are now % wise are going to cash investors and young families are priced out.  Young worker wages and home starter home prices are gapping.  So, we are exploring smaller size with common area to get their entry level possible.  We are not looking for top return, but a solution to our grown kids dilemma.  

Are you banking on a raw land flip in a certain time frame?  or raw land in path of progress?
We buy raw land in the path of progress for long term, 5 years plus, holds.  We buy farmland or recreation land and when it can become a subdivision, we sell.  The larger tract we can find then the economy of scale kicks in.  Look for land with enough road frontage that we can split sections.  We look for land with a house on it, even if a trailer, we can also rent.  

So the county is not the determining factor for us, but where is the city growing, new industry, jobs, new schools, rail, highways, etc.  Attend planning commission meetings with the local gov. to get educated on locations.  

Usually our crop income or value from us having fun on it makes up for the taxes and insurance.

1031 rules change often, so check with a trusted entity.

It used to be you can merge 1031's to a larger purcahse and do splits and partials.  

We are finishing a deal where two 1031 sales were merged to buy a larger property and still will have to throw in outside cash to reach our number.

A caveat in our area is if you are hoping for septic systems, it may be an issue, especially if you just raise the house pads out of flood plain.  Also roads may be an issue if planning on turning them over to a municpality, best talk with local code folks.

Also, make sure no fema blue creeks or like issues related to the flood plain.

Unless going to be a greenspace, it is cheaper for a reason.

Jim Rohn said something like, you think there are risks, '"oing nothing" is maybe the biggest risk.

How about buying land (and/or) rental preperty. Or my favorite is land with a rental on it.

If you find folks you trust to help or learn what are good buys or get lucky, both rentals and land are potentially good.

I look for both in the path of growth of new suburbs, new jobs, new schools, rail intermodals, etc. 

Personally, despite all my efforts to learn, listen and make smart investments...

100 acres I bought just outside the city to have fun on, wound up being a great investment.  

Enjoy your journey

Local numbers can be found by meeting with a builder of the scale hoem you are thinking.

In our area about $30,000 a lot in one city that has tree, sidewalk, lights, etc.

Five miles away in another town it is about $19,000 per lot with no sidewalks, lights, etc. 

Generally in our area you can 1. survey into lots and then sell at a wholesale price to builders and they shoulder development cost.  You cash out early and move on to your next investment.

2. You can put up the land and then do a split at closing with a builder partner who funds the development.  Risk here if a mechanics lein gets involved and what fees and management costs ae added to builder's final number.

3. develop yourself.  It is not just cost it is knowing subs that are quality and will know code approval porces.

Please talk with a local mid size builders for local trends.