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Tagged with "cheap land Archives - Page 6 of 8 - Frontier Properties USA"

Why the Land Market May Take Longer to Recover

Apr 1, 2011   //   by Mark Podolsky   //   Blog  //  No Comments

Interesting article from Steve Bergman of Inman News quoting:

"Two years ago, H. Ross Ford, CEO and president of TCN Worldwide in Plano, Texas, argued in print that the credit squeeze following the subprime blow-up created opportunities for raw land acquisitions.

His thesis held that in certain hot markets like Nevada or Florida, homebuilders had amassed large amounts of raw land for development, but with the value of that land heading deep into a trough they needed to dispose of all that acreage.

I asked Ford if his argument was still valid two years later. "The dynamics haven't changed," he replied. "A tremendous amount of raw land has become devalued in the course of the economic cycle. As such there are opportunities to buy at the bottom of the market."

Most of these opportunities have been unrealized, generally for two reasons.

 1. If you don't have the cash, it's tough to find financing for raw land deals. Ironically — but logically — in places like Florida, Las Vegas or Southern California where there are tremendous bargains in raw land, the likelihood of getting financing are the slimmest.

2. For investors, a second roadblock has been a reluctance by financial institutions to just dump assets, including raw land, into a commercial real estate market that is already flooded with product."

Our company is able to manufacture more demand simply because we are able to finance on easy terms.  I know our property isn't prime residential buildable lots in the suburbs, but it's good land at a great price. 

Second Home? Really? Why?

Mar 31, 2011   //   by Mark Podolsky   //   Blog  //  No Comments

 

This is the headline from CNN Real Estate– Been dreaming of a vacation home? Somewhere warm to get away? Or maybe a cabin in the woods? Prices are right if you can afford it.

The median price of a vacation home was $150,000 in 2010, down 11.2% from a year earlier, the National Association of Realtors reported Wednesday. In contrast, the national median for primary residences fell only 4.5% in 2010, according to NAR.

Great so I buy a second home and at a great price.  Fantastic right?  I don't think so.  Now you have a second mortgage, a second property tax bill, second maintenance bills, second utilities bill and the gnawing guilt of going somewhere else besides the place where your second home resides.  I'd rather have raw land with no maintenance fees and total freedom thank you. 

I never get used to paying property taxes

Mar 31, 2011   //   by Mark Podolsky   //   Blog  //  No Comments

Why is it that every time I get a tax bill from XYZ County do I cringe?   Even if the taxes are super cheap I just loathe the entire process of having to write a check, write my account number on the check and then mail the check.  Some County's are setup to take payment by e-check or credit card, but then they charge a hefty convenience fee for the privilege of taking your tax dollars.  

Anyways, I thought after 10 years of doing this I'd get used to it, but I never do… Well, the optimist in me likes that I'm rarely paying the same amounts on raw land that people are paying on other property types.  So I guess in that respect, I shouldn't feel so badly every time I have to write that check or click on the link.  Ah, now I feel better.  See how taking pleasure in other people's property tax pain can make me feel better?  

Thinking of Homesteading?

Mar 29, 2011   //   by Mark Podolsky   //   Blog, See it to believe it  //  No Comments

 

 
 

Many of my customers purchase rural land as an investment–a hedge
against inflation. (After all, they're not making any more land.)
 
But some people buy land to enjoy, not just to own. 
 
And all the rural land we offer is perfect for living a


sustainable, green lifestyle. Ask about our parcels zoned for agriculture,
recreation and mining, so you can easily set up your own homestead
with a mobile or modular home.
 
And when you buy rural land from Frontier Properties, you get…
 
A low down payment 
No bank qualifying–you're pre-approved
Ownership from Day One after closing
A money-back satisfaction guarantee
 
If you're ready to enjoy a simpler life, away from the stresses of
the city, why not browse our inventory of rural property? You can
see photos and read descriptions in our gallery
 
 

Kicked off PayPal After 6 years without one Chargeback

Mar 29, 2011   //   by Mark Podolsky   //   Blog  //  No Comments

 

 

Woke up this morning and received this email from PayPal–

 





A review ofyour PayPal Account has determinedthat you are in violation of PayPal's Acceptable Use Policy as it pertains to the sale of real property.  It is prohibited to use PayPal for the sale of real property, which includes the direct sale of property, timeshares, or variations on this model such as raffles/lotteries and reverse auctions.  Because we realize it takes time to find another payment processor, you can continue operating with PayPal for the next 90 days.   After 90 days(Friday, June 24, 2011) your account will be closed.


 

This is not a decision we make lightly, and we deeply regret any inconvenience or frustration this matter may cause you.  This matter has been reviewed at length, and this decision is final.

 

I know of several other land sellers that received the same message.  Something must have happened that triggered this, but what a way to start the day… 

 

We do accept other forms of payment like credit cards and checks etc., but so many people have PayPal accounts and are comfortable using it that it just irks me to have my business affected so quickly and without any warning.

Beware of Negative Amortization on Land Notes

Mar 25, 2011   //   by Mark Podolsky   //   Blog, Researching Land  //  2 Comments

I just had a recent investor of mine contact me about a land note he was paying on.  He was paying $300 month with 11% interest on a note with a principal balance of $39,000.  Well, the seller never informed him that he was in a negative amortization situation on his note.  That is, with each payment he was only paying towards interest and the principal amount never changed.  If you look at an amortization chart for this loan he should have been paying $371 / month over  a 30 year period and then by the end of the term he would be fully amortized and the note completely paid off.  

What bothers me about this (besides being illegal as it violates the truth and lending law), is the fact that the seller knew the situation and easily could have simply changed his note by either lowering the interest rate or the principal amount so his $300 payment would fully amortize.  

The crazy part of this story is my investor had been a fabulous customer and had paid in over $8,000 towards his note and then receives a statement his principal balance is $39,200!!!   I hope he gets that money back, but the lesson learned here is before you enter into any land contract with owner financing click on the link below to double check the seller's note and insure you are being fully amortized.  

Amortization Calculator

This is off subject, but if you have kids or grandkids you want to take to Disneyland  or Disneyworld I found an amazing program that will save you hours of standing in line and competely schedule and map out your day.  The program is ridemax.com and you simply choose the rides you want to go on (they give a detailed description of each ride and rate it) and then it tells you exactly what to do and where to go and when.  It wasn't free, it was $14.95, but it was worth every penny and more. 

Web site Optimized for Mobile Phones

Mar 23, 2011   //   by Mark Podolsky   //   Blog  //  No Comments

I just found this cool new wordpress plug-in which gives you the option (must scroll all the way to the bottom of the home screen) to see the Web site as mobile theme On or Off.  It's pretty cool.  I'm endlessly bewildered and amazed by technology and the advances.  Anyways, check it out on your mobile phone and let me know what you think.