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Thread: Buying land now?

  1. #16
    Join Date
    Sep 2016
    Location
    Modesto, CA, USA
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    9,879
    Wonder if you could buy it and donate the unusable portion to the country parks for a tax deduction.
    Bill D

  2. #17
    Join Date
    Dec 2021
    Location
    Southwest WI
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    296
    Quote Originally Posted by Jim Becker View Post
    7 acres here would go for nearly a million and there would be no view of the river. For $75K, that would be a no-brainer for me, Mitch, if you can afford it. I like your idea for developing the property into something special, too. The one thing I'd look at very carefully, however, is the floodplain data, including 100 year and higher historic events for the entire property.
    Luckily the river in this area is over a mile wide so the water says a constant depth. Neither of these are in a flood plain.

  3. #18
    Join Date
    Sep 2006
    Location
    Shenandoah Valley in Virginia
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    919
    Do you have any road frontage?? Is it land-locked?? Will you have to use your existing property for a right of way to it ??

  4. #19
    I would buy it if you can make the payments. They arent making any more land. Plus it ties to property you already own. They only way you can go wrong is if you cant afford to make the payments or pay the taxes.
    "All that is necessary for the triumph of evil is that good men do nothing."

    “If you want to know what a man's like, take a good look at how he treats his inferiors, not his equals.”

  5. #20
    Join Date
    Aug 2018
    Location
    Michigan, USA
    Posts
    548
    Beautiful area. I grew up about 50 miles downriver from there, and I have a couple of high school friends who built homes up on the bluffs - gorgeous views.

    That said, the property was listed for $150K in December, dropped to $125K in February, and now $75K. If you want to invest, offer $50K and see what they say.

    Just my opinion, but I wouldn't wish ownership of a BNB on my worst enemy.

  6. #21
    Join Date
    Apr 2018
    Location
    Cambridge Vermont
    Posts
    2,282
    It's hard to tell just how steep the land is. You did say there was only one building site without lots of work. To me that's kind of a turn off for most people who might want to put more than one house on it. For the one site that is there how easy is access to things like power? What about a driveway? Would it be like driving straight up Everest or be unusually long? I tend to be a hoarder but I'm realizing that it's not always a good thing. With land comes property taxes. Last week I got an offer on an 18 acre lot I own and my first reaction was no. But once I started to think about it I do almost nothing with the land, just walk on it and take a few trees for firewood, yet pay taxes every year. It's at an all time high in value and with the possibility of a recession coming up it'll drop in valve. It could be a decade or more before it reaches it's current value. Of course I'll be paying taxes all those years on it. Now I think I'm going to talk to the person who made the offer.

  7. #22
    Join Date
    Dec 2021
    Location
    Southwest WI
    Posts
    296
    There is a road up to the top of the hill and the land at the top is reasonably flat. It is not land locked. And there is power to the property. There are some very steep part and others that are walkable. I haven't explored every inch of the land but I do think you can walk to almost every part of the land.

  8. #23
    Join Date
    Aug 2021
    Location
    Redmond, OR
    Posts
    590
    So the seller is betting that you will miss any single payment in the next 2 years or not be able to finance it in under two years from now and they will walk away with your $15K and monthly payments and the title to the land. It sounds to me like the odds are in the favor of the seller especially since you don't have any documentable income.

    If someone offers you $100K cash a year from now will you be able to sell the land and walk away with the profit? Would you? Make sure your lawyer confirms that you can do so before signing.

    I am betting that 2 years and 1 day from closing the seller will send you notice that you have no more claim to the land and I doubt they will give you even an extra hour to come up wiith the funds.

    I would bet that it will take a whole lot more than $75K to make the land profitable for you to the tune of being able to pay for itself. A B&B sounds nice but how much will that actually cost to pull off... realistically? You don't sound like you have the time resources to pull off a B&B even if you had the financial resources to do so.

    I would also bet that interest rates will be double or more than what they are now,

    Only you know yourself, your resouces and your follow through to know if you can make the deal work. Honestly if it were me I would pass. I don't know how I would find a loan in two years without being able to document income. I reccomend that you figure out how you are going to pay the balance 2 years from now BEFORE you sign the papers and hand over any money.

    Some people are gamblers. I am not. I would not fork over $15K without knowing how I will pay off the balance in 2 years? You didn't mention what the balance will be 2 years from now? $75K? $75K - $15K - any payments you make? Is the seller going to charge interest on the loan?

    $75K for seven acres with a wonderful view and power to the property... why are people not lined up around the block with offers on the 7 acres? Is there $100K in back or deferred taxes owed on the property? Without a sale and a title search and title insurance how are you going to know what leans are currently attached to the property?
    Last edited by Michael Schuch; 05-10-2022 at 12:59 AM.

  9. #24
    Join Date
    Jan 2019
    Location
    Fairbanks AK
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    1,566
    Michael makes a ton of good points, esp this one:

    "I would also bet that interest rates will be double or more than what they are now," ...{two years from now}

    If you can pay that off in two years, do it. If you are going to have to refi in two years, that, to me, is a problem. The number of dollars in circulation has doubled since March 2020. Wages are not keeping up, but prices are working on keeping up.



  10. #25
    Join Date
    Mar 2003
    Location
    Upland CA
    Posts
    5,548
    Is the property accessible without going through your property? Are you the only one who could benefit from it? How much will you benefit from it?

    If you have no real use for it other than making walkways, who does? How many options to sell does the owner have? Have they directly contacted you?

    Property values vary widely, but in perspective....I looked at an F150 the other day that cost about the same.

    I would make a lower offer, and see what happens if you decide you need it.
    Rick Potter

    DIY journeyman,
    FWW wannabe.
    AKA Village Idiot.

  11. #26
    Join Date
    Mar 2003
    Location
    SE PA - Central Bucks County
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    65,685
    In reading Michael's reply, as much as I like the ideal of scarfing the land for that small price, he makes some very good points. The deal itself could be the problem. Be careful.
    --

    The most expensive tool is the one you buy "cheaply" and often...

  12. #27
    Join Date
    Nov 2006
    Location
    NE Ohio
    Posts
    6,982
    Beautiful area. I grew up about 50 miles downriver from there, and I have a couple of high school friends who built homes up on the bluffs - gorgeous views.

    That said, the property was listed for $150K in December, dropped to $125K in February, and now $75K. If you want to invest, offer $50K and see what they say.
    That is a huge red flag.
    In a real estate market where everything is going up in price, an enormous cut in price like that has to be for a reason.
    My granddad always said, :As one door closes, another opens".
    Wonderful man, terrible cabinet maker...

  13. #28
    Join Date
    Dec 2021
    Location
    Southwest WI
    Posts
    296
    I have an update to this if anyone was curious. I did get this under contract. Im buying it on land contract for a 4 year term. Here are a few pictures I took while walking the property. There are quite a few nice walnut trees.
    20220609_164211.jpg20220609_164334.jpg20220609_164433.jpg20220609_164906.jpg20220609_165005.jpg20220609_165130.jpg20220609_165134.jpg20220609_165139.jpg

  14. #29
    Join Date
    May 2018
    Location
    Lancaster, Ohio
    Posts
    1,346
    nice view
    Ron

  15. #30
    Join Date
    Mar 2003
    Location
    SE PA - Central Bucks County
    Posts
    65,685
    That certainly has some views and very nice wooded areas. I hope this works out well for you.
    --

    The most expensive tool is the one you buy "cheaply" and often...

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