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About Investing In Land In Florida Could End Up Costing You a Fortune! 8 Critical Points of Information You ABSOLUTELY MUST KNOW Before Investing a Penny In Land In Florida
Dear Friend ….. As you study every word of this report you will be amazed and some of the shenanigans you never knew existed and stunned to learn what some unscrupulous people will do for a buck. Imagine how it would feel if you were to buy a piece of land in Florida only to later find out is was “swampland in Florida” That would feel terrible wouldn’t it? Here is a small portion of what I am going to reveal to you and WARN YOU AHEAD OF TIME what exactly to look out for. ! Scrub-Jays … The little birds that destroy property values and fortunes ! Swamp Land … What specifically to watch out for ! Tax Deed Lots … the dirty little secret behind them and how they cost multiple thousands in hidden fees later. ! Lot Access … How would you like to own a lot and not have access to it? ! Lot Size … There are many lots too small to build on – You Do Not Want To Get Stuck With One of These! You could get stuck with a piece of land that isn’t worth a pot to pee in, nor a window to throw it out!
! Lot Utilities … Believe it or not, there are beautiful subdivisions all over Florida without electric to them. Keep reading – you will learn more!
By The Time You Complete Reading About 70% of This Report, You Will Begin To Feel a Sense of Calmness and Feel Any Fear of Investing in Land In Florida Fall Away Because You Are Getting The Education You Need Ahead Of Time and Will Know What To Look Out For and What Questions To Ask. You Are Getting The Straight Scoop You Need Before Investing A Dime of Your Hard Earned Money!
Let’s Get Started …..
1. Scub-Jays …
your lot worthless The Florida Scub-Jay is a small blue bird that looks like a Bluejay. It is protected under State and Federal laws and lives in the “Scrub” areas. Hence (I think) the name Scrub-Jay. In addition to them, the area they live in is protected as well. The United Sates Fish and Wildlife Service has designated many lots in Florida as Scrub-jay lots. Scrub-jay lots are spread throughout the state. For the most part, if there are homes built in the area, you don’t have much to worry about unless the subdivision is close to an overgrown area. Then, you may have a problem. The teensy-weensy tiny little birds that could make
If the lot you are looking to purchase a lot that has a Scrub-Jay designation ….
… It Is Not Buildable!
Getting a permit to build on a Scub-Jay lot is very difficult—if not impossible. So why bother investing in one?
Here is a link to the little critters
if you are so inclined to read up on them.
Many investors have lost their shirts
pitchmen selling them.
investing in Scrub-Jay lots thinking they
know better, and many more have lost a substantial sum by listening to fast talking
For Goodness-Sakes …. Don’t Let this happen to you.
There are more than enough lots and available properties all over Florida. Why risk it? Every County in Florida that has Scrub-Jays has a link to the protected areas and lots.
Here is a link to Charlotte County Scrub-Jay info: http://www2.charlottefl.com/scrubjaysearch/
Do Not Trust Anyone Ask Look and Verify BEFORE You Purchase a Property
Swamp Land Scams …
"If you believe that I've got a bridge to sell you"
In the 1960s and 1970s, scammers used nationwide advertising to lure victims to buy Florida real estate without visiting the properties first. It was a form of confidence trick. The new owners came to find their land was under water in a swamp or in some other way impossible to build upon. BE CAREFUL: Swampland scams still occur in Florida. The Internet has brought about a resurgence via online auctions of Florida real estate. Scammers circumvent commercial registration requirements by making one-on-one sales. What to watch out for: Be cautious of all dealings if you have not physically viewed the property. Now-aDays, it is much easier to look before you buy because of the internet. It is very easy to verify a lot via looking on the county website and viewing Ariel photos, zoning codes, roads, utility poles, etc.
Tax Deed Lots … Tax Deeds …
I am Licensed In Real Estate in the State of Florida I Buy, Sell, Invest and Broker Real Estate For a Living. I Have a Business License and a Corporation. I Live in SW Florida and am Very Easy To Find. I AM NOT Someone Who Deals in Lots Out of The Trunk of My Car Who May Vanish Without a Trace Tomorrow
I AM NOT An Attorney and I Do Not Practice Law, Nor Do I Give Legal Advise Under Any Circumstances. You Are Advised to Do Your Own Research.
This is NOT advise in any way. Please contact a qualified attorney for legal advice. That being said, take a look now at how a property gets a Tax Deed. Property taxes become delinquent April 1st of each year. At that time, the Tax Collector has a Tax Certificate sale. This is a tax lien on the property. If a certificate is not redeemed, (back property taxes paid in full) within 2 years, the property is eligible to be sold at a tax deed auction. The Tax Deed auction bid starts at the cost to pay all back taxes. If no-one bids on the property, the property goes to the person who paid the taxes. It is granted via a Tax Deed. WARNING: Certain liens survive the sale and remain on the property! Liens with the Federal Government (IRS), State Government, and Local Government generally survive a Tax Deed Auction. Do you really want to chance buying a property with an IRS lien on it?? There is an even uglier part of a Tax Deed property that is kept quiet from those people dealing in Tax Deed properties …… they cannot get Title Insurance without going through a very expensive and lengthly suit for Quiet Title. This process, if you can find an Attorney or Title company to do it can cost north of $3,000 and take up to a year! It is important when purchasing a Tax Deed lot that you do a lien search. A good start is to use the County Records Search Many investors hold tax deed lots. They have a lot more risk than a warranty deed lot with title insurance. Even though there is a higher profit potential, the downfalls are significant. BEWARE if you are going to invest in a Tax Deed Property.
As always like with any investment, please use due diligence. The ONLY way to even consider a Tax Deed property is if you were planning on holding it for more than 4 years. The reason for this is, there is a Florida mandate that says after 4 years, the holder of the deed may apply for title insurance. There are title insurance companies out there willing to issue the insurance after 4 years has elapsed for a fee of course.
4. Lot Access …
How would you like to own a lot and not have access
There are hundreds of lots in Florida that are subdivided, but have no access. These lots are not buildable.
Make sure you see an aerial picture of the land you are buying to assure it has proper access. Also, other homes in the area are a good signal that the lot is buildable (make sure you do a Scrub-jay search).
5. Lot Size …
The average buildable lot size in Florida is 100’ x 100’.
However, please be aware that there are many lots too small to build on! Years ago, before zoning and health department standards were set, many subdivisions were done. Some of these subdivisions are still available because they did not sell out for one reason or another. The Florida business cycle in the past has been boom and bust, and many times the developer went out of business during the correction. These subdivisions are still there, but with new
zoning upgrades and such, many of them you now need 2 lots to combine and make one. These lots above are only 40 feet wide. Unless you want a 20 foot wide home (with setbacks), I would suggest you refrain from buying this size of lot. Not to mention, they are almost impossible to resell. You can see that many people buy two together giving 80 feet of width. This is fine. The issue you need to be aware of is that people try to sell a 40 foot wide lot by itself. They don’t always disclose that you are not able to build more than a large doghouse on it! So, please know your property dimensions prior to investing. Just so you know, the lots we sell are generally a size that would accommodate at least a threebedroom two-bath home.
If You Have Any Questions About Lot Sizes Please Contact Me Through The Website. http://www.TheLotGuy.com
BE CAREFUL on this because one lot has no value unless you get the other one and many investors know this and strategically buy un-buildable ones waiting for the opportunity to gouge the un-suspecting person. Really, what you want to do when purchasing a lot is insist on closing in a title company office and ask the title company to verify all the requirements on the agreement for sale.
BE CAREFUL of the people who insist on closing the transaction out of the back of their car, or over the coffee table. BIG RED FLAG!!
6. Real Estate Taxes:
With the recent decline in prices many
people have stopped paying their real estate taxes. This has opened up a great opportunity for investors to purchase properties from the counties for back taxes at great prices and re-sell Tax Deep lots. It Has Also Opened The Door for some creative/sneaky lot flippers to get properties at very low prices (leaving the back tax bill attached to the property) and sell them over the internet for low prices. (Make Sure You Read The Fine Print BEFORE You Make an Offer on Lots Listed on Ebay!) You think you get a good deal and then, all of a sudden you get hit in the side of the head with a huge back tax bill. Of course, the person who sold you the lot is long gone and you have no recourse. (The Trunk of the Car Guys I mentioned Earlier)
Before you purchase a property it is necessary to do a search to verify that there are no back real estate taxes owed.
Make sure you have it “Spelled-Out” in the purchase agreement the property will be delivered “Freeand-Clear of all liens and encumbrances”
Before you purchase an investment property Anywhere … it is a
wise idea to check the lot for any outstanding liens. There are many types of liens that can be placed on a property—both governmental and private.
Make sure you have it “Spelled-Out” in the purchase agreement the property will be delivered “Free-and-Clear” of all liens and encumbrances. ! These include liens from the County for non-payment of certain city bills. ! Other liens are placed on lots from non-payment of Property Owner’s Association Dues. ! The Internal Revenue Service and Florida Department of Revenue are other agencies that can place liens on a property.
The absolute easiest way to avoid these pitfalls is to deal with someone who is a professional and DEMAND to close with a Title Company.
If The Seller Tries To Steer You Away From A Title Company …..
8. Lot Utilities : Utilities to the lots vary. Some lots in subdivisions have
city water, city sewer, and electric. This is preferred because city water saves you from digging an expensive well (not to mention the better quality of water from the city). It also increases the price of the property. City sewer also saves you from installing an expensive septic system. You will also want to verify the proximity of electric service.
Most areas have electric available to the lot. HOWEVER, there are some areas where the land was subdivided, the roads put in and are without power lines and no plans in the future to put them in! Imagine owning a piece of property, paying taxes on it till you get ready to build only to find out later you cannot get power to your lot, or learning it will cost tens of thousands of dollars to get electric there! YIKES!!
Now For The Good News:
WHY INVEST IN FLORIDA LAND? Florida has and will continue to be one of America's fastest-growing states. Prices are a fraction of their 2005-6 values:
Real estate prices are at a fraction of their highs from five years ago. Some land has decreased as much as 90%. Real Estate ALWAYS Recovers! It is only a matter of time. The question is how soon. Location and demand of the property help dictate how quick it will recover and right now in Florida, prices have STOPPED falling and are on their way up.
" " "
Many big builders are back in the market quietly buying up vast amounts of land right this minute. Florida is one of the best places for medium to long-term land investing. The 2007 mortgage/credit crisis is creating many opportunities to buy well located land & lots at bargain prices.
Rarely do buyers have the chance to buy at absolute market bottoms and land is the best way to participate when the Florida real estate market has it's price recovery. Based on Florida's long term high growth rate from immigration, retiring baby-boomers, and others attracted to Florida's climate, beaches, and high employment growth, this chance to buy land at dramatically low prices will be the best we will see in our lifetimes.
The need for well-located land is growing, Florida's population grew by 314,000 in 2007 and has grown by more than 2,000,000 since the year 2000. Price cycles are more extreme in land than other real estate. We are passing the low point of this cycle, which is down 60 to 80% from the summer, 2005 high point of the last cycle. o Investors like you at this point in the cycle can possibly make 100 to 150% or more when prices get back to the levels of the summer of 2005. Since prices at each cycle high usually exceed the previous highs, potential gains are excellent compared to most other investments.
Building lot values grow consistently over long periods of time because the population of Florida is growing by 300,000+ people/year and the amount of desirable, buildable land is shrinking. o Land in South Florida and within a 30 minute drive of the coast is the most likely to increase in value because that's where 90 percent of the people want to live.
Lots don't give you management and maintenance headaches like rental properties and you can realize great deals in this buyer's market.
In our website http://www.TheLotGuy.com you can find what you need to buy a great investment parcel or parcels while prices are at this temporary all-time low.
By 2030, the population of Florida will have surpassed New York as the nation's third largest, according to the Census Bureau. Estimates show a gain of 11 million residents over the next 25 years. The latest census predictions show Florida's current population of 17.5 million approaching 20 million by 2010 and topping 21 million five years later. The highest percentage of people relocate in coastal areas making land investment in this area quite lucrative. About 40 percent of the projected growth will come from people 65 and older. The elderly will comprise 27.1 percent of Florida's population in 2030 -- up from 17.6 percent in 2000. Florida will be one of 10 states where retirees will outnumber schoolchildren. In 2000, children outnumbered people 65 and older by 840,000 in the state of Florida. But ...by 2030, the "under 18" population will be outnumbered by the older population (estimated at 2 million more older people than children). Florida's youth population will drop from 23 percent to 20 percent.
6 Important Things You Must Look For When Investing in Land in Florida
1. Liquidity: Liquidity is important. You want to be able to resell your property in a reasonable amount of time if you want and/or need to liquidate. A lot in a desired area, priced at a good value, will maximize liquidity. 2. Carrying Costs: What good is a land investment if the costs associated with owning the property (carrying costs) eat up all the profits? For instance, let’s say you purchase an investment lot for $10,000 and resell it five years later for $15,000. This seems like a good deal right? Maybe!. If it costs you $1,500 per year in taxes, dues, assessments, selling costs, etc. you would actually have $17,500 invested and sell for $15,000 at a loss of $2,500. One of the primary reasons I personally invest in SW Florida is because of the low carrying costs. Most lots will only cost $150-$350 per year to hold. 3. Amenities: Amenities near the property are important when trying to resell a lot. Lots in rural areas are much more difficult to sell than lots in urban areas. SW Florida has most of the amenities of a large city (malls, movie theaters, hospitals, good schools, chain restaurants, shopping, etc.) with a small city feel. 4. Recreation: What do you look for when purchasing a property? Think about it for a minute. Many people get interested in property because of a feeling.
They picture themselves on the beach, playing golf in the winter, catching a large fish in the harbor, or enjoying the warm weather. SW Florida has it all. You are buying more than just land; you are buying into a dream. 5. Cost: When you go to sell, is it easier to sell a piece of land for $10,000 or $100,000? This is another reason I choose SW Florida for investing. The lots are a great value. You can purchase buildable residential lots for under $10,000. More people have $10,000 to invest as compared to $100,000. This also helps when you want to sell. If you have $100,000 to invest it may be worth considering purchasing ten lots as compared to one expensive lot. This way you can sell them quicker or even just sell a few to liquidate some quick cash. 6. Location: This is probably the most important criteria to look at when purchasing an investment property. SW Florida has an ideal location. It is located on the Gulf of Mexico and has beautiful white sandy beaches. In addition, it is close to interstate I75. Making it an easy for transportation to Orlando, Ft Lauderdale, Palm Beach, and Ft Myers.
In short … Florida coastal land will always be in high demand. I hope you have found this information helpful as you are investing in land.
If you are looking to purchase quality land at respectable reasonable prices, many of which have terms available, please visit our site and check out our available lots at http://www.TheLotGuy.com
You will find an assortment of lots priced to sell. Our lots to sell quickly so check back often as our inventory usually changes on a weekly basis. Also, please make sure you are a member of our mailing list to receive early notifications of new lots. Your comments and feedback are always welcome. Feel free to email http://www.TheLotGuy.com Good luck on your land investments.
Sincerely, Paul & Troy Forsberg