Land Investing Checklist Free

[Henry Clark]

Made a response to another post.  Here is a checklist for land investing.  Take it and add more items to it.  Make it yours.

Scout Troop 243 Glenwood Iowa. Make a $1,000 tax deductible donation. For replacement canoes that got damaged by straight line winds.

“Free” land investing info, try to make donation above.

1. Have a purpose for the land. Don’t ever invest and hold. Taxes, interest, insurance and maintenance will eat into the profit.

2. Always approach as a developer with a specific usage. Housing lots/ subdivision, self storage, commercial, parking, rv park, etc

3. Validate zoning, potential special or use variance, future zoning map, neighboring zoning. Versus 2 above.
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4. Deal killers. Validate planning zoning requirements and access to utilities. Storm sewer, storm pond, sewer lines, water access, fire hydrants, public bathrooms, surface coverage, sidewalk or bike paths, setbacks, power lines and right of ways known and unknown, road access, etc.

5. Deal makers- development potential, vehicles per day, road ingress egress off highway, signage potential, multiple road accesses, value add potential- housing- trees, boulders, ponds, walkout, views, right side of town, power-line right of ways, etc

6. Deal sourcing- if you’re willing to search regionally, don’t ask anyone to sell that isn’t already in a sale mode. “ No marketing.” Loopnet any deal older than 12 months, Tax GIS consistently late or 6 months past due, any property that changed hands thru probate after 12 months, Texas property tax sales land only not at auction just offlist properties, etc

7. Financial objective- 100% to 400% cash on cash or don't do it. Adjust return based on holding time and risk reward. If it pencils to a 25 to 50% profit or COC don't do it.

8. Time clock- once you do the deal you’re on the clock. Every hurdle hit it and solve it.

9. Learn to drive a skidsteer and use a chainsaw. Get excavator and a surveyor on speed dial.

10. NASTY- look for Nasty properties. They will make you the most profit. 10 acres with 1970 house. 5 acres with cattails. 10 acres with hill. 60 acres with ditches, scrub trees, etc. Horse stable in the middle of LA, 20 acres 1/2 swamp next to major airport in Florida, church with 6 acres in the middle of town, contact bank Trust departments and let them know you want to buy. Use your imagination.

You ready. Land has been for sale 100 years with no for sale sign and you drive by it every day. Look on the GIS tax maps for any railroad land and make them an offer. The greatest piece of railroad land in the U.S. is for sale, you just have to ask.

11. Financing- build a relationship with a regional banker, don’t shop for interest rates, start small and build history and loyalty they are your team, Cross collateralize, deposit CD/MM or custodial account with bank for loan, give them monthly updates, nail your deal analysis, do stress tests on your deal analysis-cost/interest rate/deal length/ sale price etc.

12. Jump off the cliff or Analysis Paralysis- define failure. See stress tests above. Don’t let your imagination run wild Compute failure. Most people fail due to imagined failure and not success.

13. Don’t talk with your spouse unless they want to, not your friends or coworkers, not your family. You’re either a snob or they will tell you how you will fail.

Guarantees? - whoever reads this. There is no way you don’t do a deal in the next 6 months. If you fail, it’s on you. Remember to make a donation.

Start small and make your big mistakes early.

Use your imagination on the piece of land.