Vacant land out in the country can be a lot of fun to use. Some of my best memories were made outdoors ATV riding, skiing, and hiking/ camping. As an Eagle Scout, I know how to take advantage of the great outdoors! For these reasons, there is a small segment of the population who like the idea of owning AND USING vacant land for recreational purposes. Some even own vacant land with the dream of eventually building a retirement or vacation house on it. However, the problem for many owners of vacant land is that they just do not have the opportunity or the desire to use it. As I said, vacant land has its purposes, but if you’re not using it, then it really can be a headache. Why pay property taxes year after year if you don’t plan on ever stepping foot on the land? After enough years of paying property taxes, many land owners decide that they would rather have their money invested in something that produces cash flow, like index funds, REITS, dividend stocks, or a different category of real estate like rental properties. Some states have especially high property taxes.

It is known that the typical US household spends $2,197 annually on their property taxes. This is according to WalletHub. That figure is for houses! In upstate New York, many VACANT LAND parcels have similarly high property taxes. WalletHub also ranked all 50 states by property tax as a percent relative to value. (WalletHub ranked each state’s property taxes as a percent of value. This allows us to compare states fairly without the high price of home values on the East Coast influencing the results at all. For example, Hawaii, which has some of the most expensive housing in the country actually had the lowest relative property taxes at an effective tax of 0.27% of property value.) Six of the ten states with the highest property taxes are located in the Northeast. These include New Jersey, New Hampshire, Connecticut, Vermont, Rhode Island, and New York. While New York areas such as Long Island are notorious for their incredibly high property taxes, the counties in upstate New York actually have the highest property taxes relative to its value. Many of these upstate communities pay well over 3%! New Jersey’s effective real estate tax rate of 2.40% made it the highest on the list.

I get emails and calls all of the time from people who feel they should be earning 2.40% on their investment and NOT paying 2.40% just to hold onto it. I rarely get contacted by people who use their land often or people who recently purchased their land. These people, of course, have no desire in the world to sell their property. As you have guessed, the people I work with just want to move on with their lives. They want to sell their land fast without putting in a whole lot of time and effort. By providing a free cash offer, Land in2 Cash gives options to these people who have unwanted land.

 

Source: https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585/

Article By John S Kiernan

Why am I in business? The answer is simply because vacant land, especially rural vacant land, is a nuisance for many people who own it. Land can be beautiful, but it does not produce rental income or dividend or interest payments unlike most other asset classes. It is possible to make some money from land, but it is not practical for most people who live far away from it. I created my business in response to those who cannot justify having their money tied up in an unproductive and illiquid asset. With the exception of Real Estate Investment Trusts (REITs), real estate is the most common illiquid asset class, which just means it takes a lot longer to convert real estate into cash than it would for CD’s, stocks, money in a checking account, or bonds. Rural land, which has more supply than demand, may be the most illiquid category of real estate. Most people I encounter looking to sell their land have no plan to use their land or they just wish to put their money elsewhere, such as in a new home, the stock market, or just a vacation.

I will buy property anywhere throughout the United States, but I specifically target areas along the east coast because of the higher expenses associated with both owning and selling real estate. These areas have high property taxes relative to almost anywhere else, and the higher closing costs make selling unwanted land even costlier. Most states on the east coast require a lawyer to be involved during real estate transactions. Many closing costs are fixed, which means they do not change regardless of the land’s value. The closing costs can sometimes be more than half the value of smaller plots of land! The most expensive costs tend to be for the lawyer (depending on which state the land is in), the title fees, the perc test, the inspection, the survey, and the deed recording costs, among other. As part of my business model, I cover all closing costs when you sell your land, including the legal fees. Basically, I am in business for those who see value in conveniently trading in their unwanted land for cash without the stress of a typical real estate transaction. There is another segment of the population who choose other methods to sell their land. There are other methods that will allow you to sell your land, but it will require time, effort, and negotiations. My process of buying land is quick and effortless for you.

You must wonder why I would want to purchase your land if, after all, it is an unproductive asset. Since there could be multiple reasons for why I may purchase a specific parcel of land, I cannot give a “cookie-cutter” answer. In some cases, I am seeking land in specific markets for the purpose of long-term appreciation in value. In other scenarios, I will look to resell the property. If I am looking to resell the property, I can contact my network of potential buyers throughout the country. I also put hours into marketing each property to properly market it through dozens of different real estate advertising platforms based on its best usage. I may take one hundred calls and receive countless more emails on a piece of property before I find a serious buyer, and I do this all without a realtor’s help.

I personally never use real estate agents for selling land because real estate agents are just not motivated to sell small plots of land, and it makes total sense when you look at the economics. Agents are paid by commissions. In smaller land sales, agents typically earn 10%. For example, on an $8,000 sale of a plot of land in upstate New York, the commission will be 10% or $800. However, there are typically two agents in each real estate transaction, and so the commission gets split in half between the buyer’s agent and the seller’s agent. That leaves $400 for each agent, but they must next give up a good chunk of that $400 to the brokerage holding their license. If the agent must give 40% to their office, then that agent will have made only $240 in earnings on that land deal. $240 is not a great return on something that can take 18 months to sell. It also does not leave the agent a big budget for advertising. That may explain why you rarely see vacant land being advertised in those glossy real estate magazines. When I sell land, I do all the work myself. If I am not able to physically visit the property, I hire people to visit the land to answer some of my questions and also take professional photos.

Land in2 Cash, LLC is like any business in that it tries to make a profit, but like any business, it was started out of a need that I felt was not being properly taken care of. Our value to you is that we take away the pain of owning and selling vacant rural land. We essentially transfer the risk of owning such an illiquid and unproductive asset very easily to ourselves so that you can comfortably move on with your life.

Thanks for reading. Do not hesitate to ask any questions that you may have through the “Contact Us” form on the top of this page.

Why Are Land Loans Difficult to Come By?

Getting a bank to loan money for the purchase of land can sure prove difficult for buyers. This of course lowers the number of potential land buyers out there, but why do banks treat land buyers differently from your typical person purchasing a single-family home?! The number one reason is that banks are afraid of the future. When loaning out money, banks wait years before they get their principal back. A lot of things can go wrong when talking about years or decades into the future, and it sure is a lot easier for someone to walk away from a piece of vacant land they owe money on than their home. Banks are not in the business of selling property- especially land- and they do not want to get stuck with rural vacant land. However, it is not impossible to get bank financing for land, but it will come with a larger down payment and a higher interest rate.

As someone who may be trying to sell their land, it is important to understand the position your potential buyers are in. Many of your buyers will rely on financing to buy your land, but they may not be able to get the financing without certain pieces of information. This may include:

• Survey of Property
• Zoning Regulations
• Existing Easements
• Title Company Search
• Appraisal
• Due Diligence: Environmental, Floodplain, Perc Test, Road Access

Whether on your own or with the help of a professional, it is important, when possible, to help your buyers gather this information. Buyers should also work with an experienced attorney to aid in the process if possible. The buyer may need to present all of this to their bank. Keep in mind this can be a fairly timely process. Other info that the bank will probably request from the buyer are credit scores and blueprints along with the estimated cost of what they intend to build upon purchasing the land.

Tricks to Getting Your Land Sold

If your potential buyer still cannot obtain the financing needed to buy your land, there are some other tricks you or your agent/attorney can educate them on. Local banks can be a huge asset in obtaining a land loan. This is because they understand the local real estate market. They are familiar with the values of properties in the area and all the good and bad to be expected. Credit Unions can sometimes offer even more competitive rates on land deals.

Owner or seller financing is another option if you, as the seller, are open to acting as the bank. This form of financing allows the buyer to put down a significantly smaller down payment, and also the closing process is much cheaper and quicker for the buyer since there is no bank involved. As the seller, you may have to wait years to recoup your investment this way. Therefore, it is not the best strategy if you need to sell your land for fast cash.

The Type of Land You Own Matters

The condition of the land you are looking to sell also means a lot to the banks. Will obtaining a land loan on raw unimproved land be more challenging than a plot of land, which already has added improvements on it, such as road access, sewers, electric, gas, water, and other basic utilities? It absolutely will. This is simply because banks view raw unimproved land as a riskier investment. The costs for improvements can be substantial and unpredictable. The banks are concerned about the worst-case scenario- getting stuck with the land if the borrower walks away. Banks understand the challenges of trying to sell raw land, all while paying the property taxes.

Wrap-Up

The struggle of obtaining a land loan has wrecked many deals. In most cases, the buyer WANTS to buy the land, but the seller NEEDS to sell the land. This is why the struggle for land loans is actually more concerning for you, as the seller, than it is for the buyer. Although you are not in complete control of the outcome, you may still be able to aid the potential buyer in obtaining a loan and getting your land SOLD! By viewing the situation in the perspectives of both the bank and also the interested buyer, the process of selling your land may be less frustrating.

Thanks for reading. As always, feel free to ask any questions through our “Contact Us” tab on the top of this page!

As a land buying company, the number one goal we have at Land in2 Cash is to make the process of selling your land as fast and convenient as possible for you. Most of the time, people are just not happy about their land. They are eager to move on from their property and tend to fall into one of the following categories:

• Need cash urgently!
• Inherited unwanted land
• Life plans simply changed
• Live too far away from their land
• Behind on taxes and/or HOA fees
• Value of land has remained stagnant
• Land has been for sale for months or years
• Seeking a simple solution to cash out their land

Buying land is what we do, and we do it efficiently. We take care of all expenses associated with the sale of your land, and we also try to do all of the work. However, the first step begins with you- that is to complete the GET A CASH OFFER form as completely as you can. This will truly allow you to sell your land quickly.

By filling out the form to the best of your ability, you will shorten the next step, which is our research process. To determine our offer, we research comparable properties, sales data, and information provided by the county. We try to get back to you with an offer within 48 hours depending on how much research is involved. As stated on our website, we provide you with a free no-obligation cash offer.

If you choose to take this offer, congratulations Because you are one step closer to selling your land fast! A basic purchase agreement will next be sent for you to sign and return. Our title company then starts their “exciting” process of reviewing your property and preparing the closing arrangements.

The best part of our process is that you will NEVER have to leave the comfort of your own home while selling your land. As promised, we pay for ALL closing costs. This is our business, and we want to make the process of turning your unwanted property into money fast and easy. The final step is when you get paid for your land in cash. After determining that the land has clear title, the title company will prepare the appropriate documents for you to sign, notarize, and send back to the title company. Land in2 Cash makes selling your land easy, convenient, and in most cases, is complete in a month or less.

Feel free to ask us any questions by clicking the “Contact Us” tab on the top of our page.