While the federal government no longer offers free land claims to homesteaders, many towns and counties across the nation still have programs to help those seeking a new beginning in a remote location. These programs typically require a preapproval letter from a lender showing that you have the means to acquire funding for a construction loan. Then, you will need to demonstrate that you have a budget for both the cost of the property and for the utility installation required to connect it to the water, sewer and electricity.
Once your application is approved, you will want to conduct a thorough due diligence process to ensure that the property meets your needs and is located in an area where you can find work or establish a small business. This is especially important for undeveloped land, which requires more time to evaluate than a house would. Also, lenders treat vacant land as a riskier investment than an existing residence, so they tend to charge higher interest rates for loans on raw land.
In addition to checking out the property’s physical characteristics and zoning status, you should research the local economy to understand job opportunities, the availability of a medical care provider and whether the local public school system is rated highly. If the town is remote, you should consider how much it will cost to maintain a vehicle for getting around or how long you’ll need to travel to reach your preferred jobs and amenities.
Most people who receive offers for Get Offers for Land in America receive unsolicited letters from investors offering cash for the property. These investors are known as “wholesalers,” and they make money by flipping properties that are bought at a discount to their real value. They use mass mailers to maximize their exposure, and they have very high costs associated with their mailings, closing fees and title reports. Because of these high costs and a low response rate, they generally pay no more than the market value for a property.
You can avoid these high prices by paying for your land in cash or finding a seller willing to offer seller financing. It’s also a good idea to seek financial advice from professionals to assess your options for purchasing land. You may be able to qualify for special loans with a lower rate than you’d get with conventional mortgages. You could even consider a land lease, which is an arrangement in which you buy the right to use the property for a set period of time, with the option to purchase it after that period. Land leases are often cheaper than buying the land outright, but they can have a lot of hidden expenses. For example, you might need to pay for septic tank installation, driveway excavation and utilities. Be sure to consult with financial advisors and a real estate lawyer to decide what is the best strategy for you. A lawyer can draft the sales contract to better protect your interests after you relinquish ownership.