Investor Guide

GUIDE

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Purchasing a Property is most likely the biggest financial decision you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully. But not anymore as we present the Practical tips researched and self-checked for you.

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Set Your Priorities Early

Set your priorities keeping in mind why do you want to buy property. Are you tired of paying rent? Are you looking for your own home? Are you looking for tax benefit? Are you looking for an investment portfolio? Having a clear sense of reasons and priorities will help you choose the right property.

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Know The Local Environment

It’s been said that the person who is informed is a good negotiator. It’s always better to know current prices of the property in the locality, average difference between asking and actual sold prices and scope of appreciation for such properties in the locality.

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Act Quickly

In real estate, time is always of the essence, and prolonged hesitation often results in loss of opportunities. Hence if you like any property, make an offer. If your right move is unclear it’s ok to take a pause on a decision but keep in mind that there are competing buyers and changing interests so the entire dynamics can change in a minute.

"Owning A PLOT Can Be An Excellent Value. It Gives Us Serenity, Inspire Us And Help Us To Dream."

Here Are Some More Hands On Tips For Buying A Property:

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Always purchase from known source. The developer having respect and credibility in the market should be preferred. He should have ability to complete all the infrastructure and amenities within the time frame promised.

Owning a property in prime or upcoming growth areas means our plot has greater chances of appreciation. Checking the areas with Government focus zones, industrial developments and proximity to main city will help to know the growth prospectus of the plot.

Purchase high quality property with great value. Plot having proximity to natural landscapes, approach roads, water bodies will attract more buyers.

Purchase a plot much before a plan to build which will benefit you from value appreciation and will save your money than paying higher cost later. Buying a plot is much effective as it will give much value and gives us base to dream and lay foundation for our new home.

Buying a plot in developed property and infrastructure with no time frame to build will be the best option.

Buying a plot from developer can save us money as it will be with all basic amenities like electricity, water supply, roads and drainage line mainly due to economy of scale which won’t put us in surprise otherwise developing plot on our own.

Planning is the secret of buying a plot you are dreaming for. If you are looking for finance option, it’s better to plan in advance for down payment or own component for buying a plot. Having your down payment in hand will allow you to make the buying decision the same day ahead of competing buyers who are looking for the same property. Some developers do have their own Interest-free Financing Schemes.

Be ready to buy the plot on the day of visit. Do all your homework, financial analysis and planning before visiting the site. Once you find the perfect property just make a decision to buy at the same time. This will give you upper hand on negotiation table. Successful plot buyers act immediately.

When developer is motivated to close the deal take the advantage of the discount being offered by him. This happens when you are a potential buyer and generally discounts are offered at the end of the month or year.

Always keep in mind that a plot should be bought with modern & Future ready infrastructure if available. This will give you a convenience, comfort of all amenities and everyday enjoyment. It helps you to give better appreciation to your plot.

There are developers who offer world class amenities which a plot owner can’t afford if he wants to build individually. So it’s always better to buy a plot with a developer who is offering such amenities which enhances our quality of life and increase resale value.

Buying a plot with resale in mind will be a wise decision. Always buy a plot and build keeping in mind what your next buyer will look at the property. At the time when you want to sell your plot, the next person may look for amenities and infrastructure available with the property.

When development is in full swing on the property where you are buying a plot, check for quality of construction and other development because it will certainly have an effect on future value of your plot.

While buying a plot we need to have a look at finance option available from leading banks. Many banks will finance for buying a plot. It’s better to avail finance to lower down liquidity crunch.

Look for a developer who is having good association with leading financial institutions. Developer who is having established relationship with major banks is a reputed developer. He will help you for your financial requirements for buying a plot so that you won’t be left alone looking out for loans.

Here Are 10 Reasons Why You Should Be Investing In Land

1. With Vacant Land, You Don’t Need to “do” Anything to the Property.

Forget construction! Forget renovations! You don’t need to be an expert or knowanything about how to rehab a property yourself. In most cases, you really only need to know one thing: “Is the property suitable for building?” As long assomeone else can build on the land if/when they want to, a huge part of the battle is already won. Like the Retipster Blog? Become an REtipster Email Subscriber and I’ll send you a free copy of INVESTOR HACKS! - along with instant access to the REtipster Toolbox (with free tools, video tutorials and more)! 100% Privacy. No Games. No B.S. No Spam.

2. Land is a “Hands-Off” Investment.

Have you had enough of dealing with tenants, toilets, bugs, mold, lawn care, leaking roofs, bursting pipes, broken furnaces, and the hundreds of other issues that come with owning buildings? Vacant land doesn’t involve ANY of those things. Once you buy it… it sits there, it behaves itself, and nothing happens.

3. Statistically, Vacant Land Owners are Highly Motivated to Sell.

Why? Because vacant land owners (by default) are always absentee owners. When a person doesn’t live inside of (or even near) the property they’re trying to sell, there is less of an “emotional connection” (because it isn’t their primary residence). In many cases, you’ll find that these sellers are willing to sell their land for pennies on the dollar – simply because they don’t live anywhere near it, it’s not producing any income for them (because they don’t know how to optimize their land correctly) and as a result,they are much more apathetic about it. Find these people, and you will find some incredible deals

4. Land Investors Have Virtually No Competition to Deal With.

Are you tired of dealing with such stiff competition on every property you try to buy? Are you sick of getting outbid on every good deal you’re lucky enough to find? Well guess what… there is virtually no competition with land. You see – most real estate investors have their minds stuck on: “houses”, “apartments”, “commercial property”, because that’s what everyone else does. Most investors don’t understand the superior benefits of land and this can definitely play to your advantage.

5. Land Investors Call Their Own Shots.

When you buy vacant land the right way, it’s easy to buy each property with your own cash andcompletely avoid dealing with banks and mortgage companies. When I got started as a land investor, I had $3,000 to my name and to this day, I have never had to borrow money from a bank. Ever. When youknow where to look for great deals on land, it requires very little start-up capital to get your business up and running.

6. When You Learn How to Research Properties Effectively, you can Buy and Sell Vacant Land Propertie

In 2011, I bought and sold a parcel of land and grossed over $44,000. The entire process took me 5 months from start to finish and to this day, I’ve never actually seen this property with my own eyes. Everything was done virtually, using the tools that you and I have available for FREE online. The beauty of land is that it doesn’t involve any structures. This means the inspection process is VERY simple – and if you’re doing the right research, you can easily buy your properties without ever visiting them in-person.

7. Add Seller Financing To The Mix And EXPLODE Your Income Potential.

In 2011, I bought and sold a parcel of land and grossed over $44,000. The entire process took me 5 months from start to finish and to this day, I’ve never actually seen this property with my own eyes. Everything was done virtually, using the tools that you and I have available for FREE online. The beauty of land is that it doesn’t involve any structures. This means the inspection process is VERY simple – and if you’re doing the right research, you can easily buy your properties without ever visiting them in-person.

8. Land Is Very Inexpensive To Own As A Long-Term Investment.

When you buy a piece of land for the right price, there are no mortgage payments to make, no utility bills to pay, the cost of property insurance is nominal (if you have it at all) and property taxes areextremely cheap. If you want to park your cash somewhere and forget about it, vacant land could be exactly the investment vehicle you’re looking for.

9. Land Gives Its Owner Peace Of Mind.

Think about it – land is a long-term, tangible asset that doesn’t wear out, doesn’t depreciate, and nothing can get broken, stolen or destroyed. Put all of these benefits together with your ability to buy it for next-to-nothing… and can you think of a better combination.

10. They Aren’t Making Any More Of It.

Most people don’t think of vacant land this way, but the reality is – land is an extremely valuable resource with limited quantities available. Especially when you purchase land in the path of growth, you will find yourself with a finite asset that a lot of other people want to get their hands on. Stocks, bonds, mutual funds and 401Ks all make sense in certain scenarios, and so does land. If you go into this with the intent of holding the right property for the long-term, it can make a lot more sense (and be a lot more profitable) than any other retirement vehicle out there.

Land Can Be Deceptively Complicated

Most people don’t think of vacant land this way, but the reality is – land is an extremely valuable resource with limited quantities available. Especially when you purchase land in the path of growth, you will find yourself with a finite asset that a lot of other people want to get their hands on. Stocks, bonds, mutual funds and 401Ks all make sense in certain scenarios, and so does land. If you go into this with the intent of holding the right property for the long-term, it can make a lot more sense (and be a lot more profitable) than any other retirement vehicle out there.

Especially when I’m buying vacant land out-of-state, my first line of business is to understand thetopography of the property. There are many, many places around the world that have veryunpredictable elevations, cliffs, mountains, valleys, ravines and more. In many cases, the topography of the land can have a huge impact on the build-ability of a property. For the same reasons you can’t build a house on 90 degree cliff, you should be doing some preliminary research to find out where your property is located, and what the lay of the land is One of the best ways to do this is by using Google Earth (which is free).

You can download the software, search for your property (using the address or coordinates) and zoom in using your mouse buttons and the control and shift keys on your keyboard. This will also allow you to tilt the earth on its side so you can see precisely where all the hills and valleys are in your area. This software has given me a crucialperspective on hundreds of occasions

Especially when I’m buying vacant land out-of-state, my first line of business is to understand thetopography of the property. There are many, many places around the world that have veryunpredictable elevations, cliffs, mountains, valleys, ravines and more. In many cases, the topography of the land can have a huge impact on the build-ability of a property. For the same reasons you can’t build a house on 90 degree cliff, you should be doing some preliminary research to find out where your property is located, and what the lay of the land is One of the best ways to do this is by using Google Earth (which is free).

If a property doesn’t have access to one or more of these staples of reasonable living, the property (for all intents and purposes) may not be considered build-able. After all, who would want to build a house where they can’t flush the toilet or get access to clean water? If a property isn’t build-able, you will lose amassive portion of the property’s usability, marketability and value. Since most people buy land with the intent building on it, you will definitely want to be aware of anything that could become an obstacle to that objective.

First, you need to understand the exact dimensions of the parcel of land you are evaluating. Next, call the local zoning department and ask them what the designated building setbacks are for the property in question (building setback requirements are very common, and are imposed as a way of giving order and consistency to the buildings in any given area). When you take these setbacks and regulations into account (relative to the size of this parcel of land), is there still enough room to build something worthwhile – or does it render the property useless? I’ve come across several properties that were designed (albeit, unintentionally) to be too smalland after factoring in the setbacks – you can’t build anything on them at all, leaving them virtually worthless!

Most of the vacant land you’ll encounter will have SOME kind of zoning requirements and/or usage restrictions in place (there’s a reason you’ll never see a 100 acre pig farm next to a 100 story skyscraper, or a massive shopping mall next to a landfill… it just doesn’t make sense).Every municipality in America has a plan(even if it’s a vague one) for how they want different sections of their land to be used,regardless of who owns it. As such, you should always expect your property to come with some reasonable limitations on what it can be used for. If the property is part of a Home Owner’s Association (HOA) it will most likely have even more stringent restrictions in place to help maintain the “quality” and formality of their neighborhood.

The idea is to keep any bizarre behavior OUT of the neighborhood (e.g. – cars in the front yard, lawns nobody takes care of, houses that look out-of-place or aren’t built to code). Usage restrictions aren’t necessarily a bad thing – they almost always make sense on some level. They’re designed to help maintain order and support the value of each property in the subdivision. On the same coin… if you aren’t aware of these restrictions before you purchase, they can also create some conflict with the plans you had in mind for the property. This isn’t common for most land investors (because most people have no intention of using their property for purposes that don’t jive with their surroundings), but even so – you should always make sure you understand what the rules areBEFORE you buy a parcel of vacant land. This will help you avoid owning a property that requires maintenance you don’t want to do, or that can’t be used for your intended purpose.

In some parts of the country, parcels of land are vacant because they are literally under water. In other areas, there are many properties located within close proximity to bodies of water that is prone to flooding. In either case, if a property is at risk of flooding – you’ll want to know about this before you buy, because properties in a flood zone can be extremely expensive to insure. Land that is located near a state of federal body of water can be extremely valuable, but this close proximity to the water can also create a flurry of issues… so be sure you understand the ramifications of your particular location. Want to check and see if your property is located in a flood zone? One quick way to verify is to check the FEMA flood maps in your area. You can do this by visiting msc.fema.gov and following the instructions in the video above. You can also try FreeFlood.net for another user-friendly way to find the same information.

If you’re planning to build a “dwelling” of any kind on your parcel of land, there is one issue that may seem insignificant at first glance, but it has the potential to make or break a land deal. It’s called a “Perc Test” – and if you’re dropping some serious coin on land in a rural area, this is an issue you’ll want to be sure about before you sink your money into it. A Perc Test (also known as “Perk Test”, and more formally known as a “Percolation Test“), is a soil evaluation that tests the rate at which water drains through soil. If a property doesn’t have easy access to the local sewer system, a perc test is required to determine whether a septic system (the alternative to a sewer) can be installed on the property. If a property doesn’t pass this test, you could have a very difficult time building any type of dwelling on the property, so unless you’re able to tap into the municipal sewer system (which will negate this issue altogether), be sure to give the county health department a call and ask them what is required to install a septic system (or connect to the local sewer) in your area. For a detailed overview of how a perc test works and how to verify the status of this issue, check out this blog post.

It’s an odd phenomenon, but believe it or not – there are thousands of properties all over the country that have no road access. They are surrounded on all sides by other private property – which (according to some) deems the land virtually useless. In a sense, these properties might as well be on the moon – because nobody can legally access the property. This issue can be overcome if you can establish a legal, recorded easement to the property. This can be done if one of the neighbors is willing to allow you access through their property – to yours. In many cases, a neighbor shouldn’t be expected to do this for free, you’ll have to give them a reason to help you (usually in the form of money). Again, this isn’t an impossible issue to overcome, but it is definitely something you’ll want to be aware of before you purchase.

I’ve seen a number of properties that are virtually useless due to their size and shape. I remember on one occasion, I came across a parcel of land that was 5 feet wide and 900 feet long. I’ve also seen properties that were 10 feet by 10 feet. If you see a parcel of land with an odd shape, use your common sense. If you can’t think of a legitimate use for a property with its given dimensions – you’ll probably want to think twice before buying it.

There are a lot of properties in the world that don’t have access to a municipal water supply (i.e. – city water). This isn’t necessarily a problem, but it does mean you’ll have to drill a well in order to access a clean water source beneath the surface. There are a few ways to determine whether or not you’ll be able to do this but in most cases, if there are other buildings in the near vicinity (e.g. – homes or other dwellings built next door), this is usually a good indication that you won’t have any problems accessing water either. If you’re looking at a vacant lot in the middle of the desert or near the top of a mountain with nothing around for miles, you will probably want to verify with a professional that water will be accessible if/when you need it (and if your only option is to have it hauled in by truck, you’ll want to get an idea for how much this will cost on an ongoing basis).

I’ve actually never encountered this in my time as a land investor, but there are some municipalities that will impose a temporary “moratorium” on building from time to time. For various reasons, a town will determine that they want to hit the “pause” button on all new development, which means that for the time being, you (or anyone else) will not be able to build anything in that area. Again – you can call the local planning & zoning department to see if this is an issue in your area.

On a few occasions, I’ve discovered that what I thought was a piece of vacant land, was actually a makeshift landfill. If you’re going to buy a piece of land, make sure that all you’re getting is LAND (and if anything else is coming along with the deal, make sure it’s something you actually want). These kinds of messes can be very expensive to clean up and as I explain in the video below, companies like WeGoLook offer some very convenient and cost-effective ways to verify what the property looks like BEFORE you buy.If you’re interested in learning more about how WeGoLook works, be sure to check out the full review I did on their service in this blog post.

Most states have environmental laws that pertain to commercially zoned property (i.e. – properties zoned “Residential” generally aren’t held to these standards). If you’re considering a vacant lot zoned for commercial development, make sure you’re not inheriting any environmental contamination with the property. For most commercial properties, the best way to do this is by ordering a “Phase I Environmental Report” (many banks will automatically require this, because it affects their collateral). This report will identify if there are any “Recognized Environmental Concerns” (RECs) on the property that you need to worry about. If you neglect to do any environmental due diligence, the liability for any existing environmental contamination on the property could ultimately fall on your shoulders – making it very difficult and expensive to sell the property in the future. For the most part, properties located in an undeveloped area are generally not going to have these problems, but if you’re looking at commercially zoned property that was previously occupied byanybody or anything, I’d recommend (at the very least) ordering a “Records Search & Risk Assessment” (RSRA) or an “Environmental Transaction Screen” (ETS) from a local environmental professional. These usually cost around $500 and will do a high level review of the property to determine the likelihood of any potential environmental contamination.

The properties next door can have some MAJOR implications for the value and “sale-ability” of a parcel of land (e.g. – Think about it, would you rather live next to Yosemite National Park or a Landfill?). For understandable reasons, most people care a great deal about who and what they live next to, so be sure to get a good idea for what the surrounding properties look like (hint: this is another potential area where a service like WeGoLook can help). Is this a desirable area? Is it the type of place where you (or anyone else) would want to live? If the surrounding properties have any obvious issues that are beyond your control, you’ll want to think very carefully about what this means for the property’s value and whether or not you want to own it. For a quick tutorial on how to very QUICKLY find out what the adjoining properties look like next to the parcel you’re researching, this video explains one way to do it.

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