Tuesday, March 2, 2010

I've been saying this for weeks, if not months - now is the time to buy investment real estate - in other words - LAND!

This morning, CNN Money Online had this to say in BOLD HEADLINES - "NAB A REAL ESTATE DEAL NOW - WHILE YOU STILL CAN!"

Remember - Buy low - sell high! If you miss this opportunity - you may prefer the mantra "shoulda, coulda, woulda".

Carpe' diem,

Paul

Tuesday, January 5, 2010

Wonder why there are so many ads on TV encouraging you to buy “GOLD”? 

If you had bought gold in 2002 – just 8 years ago – at about $290/ounce, wouldn’t you want to sell your gold today at $1,200+/ounce for a whopping 414% profit.  Well – duh.

I remember reading Scrooge McDuck comic books when I was a kid.  He was Donald Duck’s rich uncle who had a huge building filled like a swimming pool with coins and dollar bills.  Every issue pictured old Scrooge – literally swimming in his money.

If you're sick and tired of the returns you're receiving on your IRAs - either the low interest rate on CDs or negative returns on mutual funds or individual stocks, you can roll your IRAs into land.

Land prices have dropped from the effects of the recession leaving them at a 2-year+ low. Remember the adage "buy low - sell high"? Why buy gold when it's at an all-time high, or stocks when they're also at their highest this year?

You can rollover your IRAs into land - purchasing at today's low prices, and then hold, sell or roll-over into another property later for the profits you've been seeking.

"How is that done" you ask. Ask us for more information. Then, when you're ready, take a look at some of the price reductions we're able to offer on land at: http://www.ncmountainland.net/reductions.shtml

Wishing you and yours a safe and Happy New Year!

Paul

Thursday, November 5, 2009

How many times have I said it?  Now, one of our Paul’s Blog readers has put in his 2¢ worth.  Read his comment, and then PLEASE tell me what YOU think.  Is it time to invest in land – or not?

"I believe land to be a great investment opportunity and have followed my own advice for some time.  The problem we are facing today is many banks are reluctant to lend money for real estate.  My experience has been they will more readily lend for raw land than for real estate with a home on it.  As you have stated before, it appears we have hit a bottom price support for most raw land.  The spring of 2010 should see a return to reasonable growth in land prices.  Now is definitely the time to seriously consider a land purchase if one is in that mindset."
- Joe

If buying land as an investment is your objective, will you wait until prices rise again – or buy now?  Come on investors – the mountains are calling!

Paul

Monday, November 2, 2009

Concerned about the economy?  Worried about a loved-one fighting in the war?  Think your health-care is about to take a gigantic hit?  Just received another 401k statement showing your losses for the quarter?  Know someone who’s lost their job? Needless to say - there's plenty to worry about – especially when it comes to your financial well-being!

So . . . is gold the answer?  Oh sure, it's tripled in value over 10 years.  The price quoted today was $1,035 per ounce, up from $300± 10 years ago.   That seems to go against the "Buy Low – Sell High!" theory – doesn't it?  Seems to me those who bought 10 years ago are trying to make their money off the back of today's gold buyers.

What about land?  You've shown an interest in land – that's why you're on our website.  Land prices ebb and flow like the stock market – or gold – or many other financial investments.  What's different right now is that land prices began to ebb two years ago!  That's right – they hit their peak 24 months ago, and have been self-correcting ever since – and without the help of any "stimulus plan". 

Right now – we believe prices are as low as they are likely to go.  If you've ever thought about purchasing land, this is your opportunity to "Buy Low!"  Right now – there are more choices – at the very best prices.  Those who are ready to seize this opportunity will snatch up current properties.  Procrastination will not be rewarded.

Monday, October 19, 2009

Where to put $100,000 or $1,000,000

A recent article posted on CNN MoneyOnLine suggests that the best place to put your spare dollars is to avoid the "tax man" by buying "Munis" (Municipal funds) with a return of just over 4%.  WOW! Now isn't that a great return on your hard-earned money? Or NOT!

You may want to consider a wise alternative.  As Mark Twain once said "Buy land, they're not making it anymore".  While some may think that's just a cute expression, it's also quite true.

When you own land, it doesn't call you in the middle of the night when the toilet is stopped up.  Nor does it send you a quarterly statement showing your stock portfolio has tanked.  In fact, it never calls you at all.  It just sits there growing quietly in value – often by leaps and bounds.  It can also provide income.  Here in the mountains, you can lease it for hunting or sell the timber.

When you're ready to sell, you can also avoid the "tax man" by employing a "1031" tax-deferred exchange.  Instead of taking your profit in cash, you simply purchase another larger parcel of land, and grow your wealth even faster.

Granted, if you've never owned a large parcel of unimproved land, it may sound a little scary.  It's not – once you understand the process.  You can even own land in your IRA.

As Mark Twain also commented: "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover."

Still uncertain?  Call, 800-849-9225, Email Paul or simply stop by to learn more.  You can even begin by just downloading a FREE copy of "Carolina Dreaming"– our land buyer’s manual.

Monday, October 5, 2009

Since you're reading this blog, it probably means that you've been thinking about buying land in the North Carolina Mountains. Please share with me the reasons why – what makes you want to live in this area? Have you always dreamed about living in the mountains, did you vacation here and fall in love with the beauty, or do you just want to come home again?

Please let us know what you would like to know about owning mountain land. How can we help as you begin your search? Email your questions, thoughts, ideas and stories to Paul.

Thursday, October 1, 2009

Gasoline – Bargain Priced at $22.40 per gallon

Let's suppose you come to the mountains several times each year.  You come for recreation and the pure enjoyment of our beautiful surroundings. 

Not long ago, when you came to the mountains, you would have found most gas stations here pricing their "Regular Unleaded" at about $4 per gallon.  You may not have liked paying that price – but you did – and enjoyed your trip.

But think for a moment what your reaction would have been if you gassed up here, and found that all the gas stations had priced their Unleaded at $22.40/gallon.  That’s right - $22.40 per gallon!

If you've thought about buying land here in the mountains, that's exactly the scenario you would have faced until recently.  Here's an example for you to ponder.  In Watauga County, the ASKING price for 100+ acres of unimproved land rose to an unprecedented price of $42,000+ per acre.  The actual SELLING price, however,  for land over 100 acres prior to this escalation in Watauga County averaged $7,016/acre in 2005, $10,852/acre in 2006, $5,489/acre in 2007, and $8,000/acre in 2008.

That example equates well to my hypothetical $22.40/gallon for gas.  Why?  Because, when prices escalate beyond reason and reality, we tend to stop buying – whether it be for gasoline or land.  The resulting reduction in purchases inevitably leads to a recession.

Now,  here's the good news!  Asking prices have now moderated back to within a few percentage points of actual selling prices.  In other words, just as gas prices have withdrawn from their previous high, so have land prices.  If you still want to purchase land, and haven't been back recently, you may easily miss the train.  It's leaving the station as other savvy buyers recognize that land choices are more plentiful than ever and prices are right on the money!

Don’t believe me?  Take a look at: http://www.ncmountainland.net/reductions.shtml

Now IS the right time to buy.  Wait too long and . . . well . . . you know the rest.

Friday, August 7, 2009

Surveys - Why They are So Important!

Here's a quick "primer" on the importance of surveys.  Let's say you've found the perfect property, a parcel represented by the seller to consist of 207 acres. You've looked at the legal description on the seller's deed. It appears to be accurate and clearly states, "containing 207 acres, more or less."

The price looks good, you like the land, and buy it. Later, after your purchase, you decide to have it surveyed. To your dismay, the surveyor informs you that you own only 141 acres.

How could this situation have been avoided? Easily --you should have had the property surveyed BEFORE you bought it. Properties that have not been sold for many years may contain legal descriptions that were often created using inaccurate survey methods, or no methods at all. Owners from the distant past often created their own description of their property by merely referring to physical landmarks available at the time.

For example: "Beginning where the creek crosses the road, continuing with the creek to a triple poplar stump, then up the ridge to a pile of rocks, thence with the ridge back to the edge of the road, and with the road back to the point of beginning, containing 207 acres-- more or less."  Seventy-five years later, you come along and buy the property.

Where do you suppose the poplar stump is by now? Or the pile of rocks that was there long ago? Get the picture? You have no way of knowing for sure how many acres you are purchasing without a current survey.

The Best Advice - When making a land purchase, you should use specific language. First, in the purchase contract specify an exact dollar sale price, i.e. $350,000.00 or $595,000.00 -- not a price per acre. Then, in the paragraph reserved for other terms and conditions, add this clause: "Buyer is to have property surveyed. If survey shows less than 207 acres, seller agrees to adjust the price at the rate of $x,xxx per acre for each and every acre less than 207 acres." This will serve as protection in case the old legal description is faulty. It also establishes how the adjustment in price will be made. If the seller refuses to accept an offer with that or similar language, don’t buy it without a survey.

How A Survey Works - Surveyors are licensed by the State. Their work consists of research to determine not only the owner of the property being surveyed, but also adjoining landowners. A physical survey of the land is conducted on-site, and corners and boundary lines are identified and marked. Computations are made, adjoining boundary lines are reconciled and a final survey map or plat is provided showing the property boundaries. A written legal description is also produced which becomes the description used in the deed.

Boundary Line Overlaps & Other Potential Concerns - Keep in mind that surveying mountainous territory is physically challenging. Old survey methods, poor legal descriptions, and little or no regulation of surveyors back in the old days also contributed to faulty legal descriptions on many old deeds.

As a result, boundary overlaps, "no man’s land" gaps between properties, and other situations requiring resolution of boundary lines may occur in the absence of a new survey. If the surveyor discovers any questionable property lines, he will recommend obtaining a "boundary line agreement", a document that is an agreement between landowners as to the exact location of the property line. This document is recorded at the courthouse in order to place the agreement on record, thereby preventing future disputes over the location of a property line.

Although the surveyor may mark the boundaries with flagging tape, it is a wise land buyer who requests that all boundary lines be "painted" for long-term recognition. This can take extra time and adds expense, but experience has shown that painted lines last for many years, while flagging tape may disappear or deteriorate in a year or two.

Having a new survey also allows title insurance to insure the accuracy of property lines, as well as insuring the actual title to the property.

Survey Costs - Surveyors charge for their work based on a number of factors including topography, length of boundary lines, ground cover (i.e. wooded, open, dense ground cover, etc.), complexity of the title, boundary overlaps, etc. Some charge by the hour, others by the number of feet of boundary line, and others by quotation. We can supply a list of local surveyors, all of whom would be willing to discuss with you the possible charge for your survey.

Got questions? Email Paul today and let him share his 39+ years experience with you!

Gordon Liddy tells you on TV to "Buy Gold!'  He then tells you gold has tripled in value since 2000 – in other words if you had bought in 2000, you’d have made some serious "jack".  But tell me – why would you buy gold when it reaches its highest point?  The answer is simple – "they" bought it in 2000 for just under $300/ounce, and want to sell it to you at an all-time high of about $1,000/ounce – to make a profit for "them".

For the past two years, you've seen headline after headline that scream "real estate prices are going down!"  Does that mean it's a bad time to buy real estate?  On the contrary – simply apply this well-worn expression: "Buy low – sell high!"

You wouldn't buy gold at $1,000/ounce and then sell it for $300/ounce – would you?  Whether it be gold or land, you make your purchase at the low point – and sell high.

So, here's a NEWS FLASH!  Land is currently at its low point!  The recession has worked its magic – and land prices have receded to levels not seen for 3-5 years.  Because land buyers are once again in the market looking for those bargains, they aren't likely to last more than another 90-180 days.

If you prefer to own physical assets, and land is the investment vehicle of choice for you, what's holding you back?  What do you see as the main obstacle to "bulking up" your land holdings?  Our readers want to know.  Email your best investment strategy to:Paul

So . . . how have you fared during the last two years of recession?  What investments have you made to counter the adverse effects of the economic slump?  Did you buy gold?  Stocks? Land? Antiques?  Guns? Did you hunker down and place all your eggs in the CD basket?

In case you haven't noticed,  it's not just the economy (duh?).  There's an equal amount of social, cultural, and political upheaval going on right here at home – not to mention international tension with the potential for an explosion of new challenges.

So – I really want to know!  What approach have you taken to improve your investments during this difficult period?  Have you "doubled down" and really focused on protecting and growing your assets, or backed off in a defensive mode to wait out the worst of it?

Wednesday, July 1, 2009

What's your greatest fear? Generally speaking fear of the unknown ranks #1! For example, let’s say you've never been in an airplane before. I take you to the nearest airport, put you in the seat of a Cessna 152, and ask you to fly around the field three times and land.

Would you do it?

Not likely – but WHY? It's simple – you don't know how to fly, and you don't know what would happen (although you suspect certain death would be the outcome). In other words, your greatest fear is that you don't know what you don't know – right?

Now, let's say you take flying lessons for three months. You learn about lift & drag, navigation, airspeed, ground speed, ailerons and rudders. You solo – and soon realize you know how to fly an airplane. Now would you take the Cessna around for a spin? Sure – why not.

So - what changed? You learned what flying is all about, just like you learned to drive a car. You’re not afraid to drive your car, are you?

So, if you've thought about buying a large parcel of land, but haven't been willing to make the necessary commitment, chances are good that fear of the unknown is the culprit. If you've never owned land before, you probably don’t know what you don’t know about buying and owning land. It’s mainly a lack of knowledge holding you back.

So here's a starting point for you. My son Chris and I don't sell land, we simply provide you with "buying lessons" to provide the knowledge you need to get started. We know you are perfectly capable of making your own buying decision, so we leave out the sales pitch.

If land is on your mind, and you haven't been willing to "pull the trigger" on a purchase, please tell us why. What do you need that you haven't yet received to help with your decision?

This blog is a get acquainted site – a place where you can ask us anything and we'll reply with the info you need. Please tell us what you're waiting for, what's holding you back. Go ahead – give me your comments right now!

Wednesday, June 24, 2009

Are ethics really important in the real estate business? They certainly can be as illustrated by the following example.

Imagine for a moment that you are having chest pain and shortness of breath. It is obvious that you need a doctor, so you place a call to Dr. Dennis Pullit, DDS. Would it make sense for Dr. Pullit to recommend that you call a heart specialist rather than a dentist? Do you think there might be an ethical issue here if Dr. Pullit tried to assist with your chest pain?

Next try applying the same principal to real estate. There are numerous specialties in real estate, just as there are in the medical field. Many agents are “residential” specialists who work with home buyers and sellers. Others specialize in commercial, industrial, property management – or raw land.

Each specialty requires a different subset of knowledge, education, and experience. For example, an industrial broker must know and understand concepts such as internal rate of return, future value, and physical & functional depreciation – to name just a few. Thus, it would make sense, if you’re planning to buy a home, to work with a residential specialist – and not an industrial specialist.

A broker who specializes in homes will have daily contact with such critical items as home inspections, residential financing, termite inspections, Homeowner’s Associations, and subdivision regulations. The more homes an agent has listed and sold, the greater the value of the experience gained. The industrial specialist cannot begin to offer the same degree of excellence in the services offered.

So – back to ethics. Recognizing the importance of different specialties within the real estate business, the National Association of REALTORS® addresses this topic. Take a look at Article 11 of the REALTOR® Code of Ethics:

“REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such
types of property or service, or unless the facts are fully disclosed to the client.”

Now take a look at some of the areas of expertise required of a broker who lists and sells large parcels of raw land:

1. Metes and bounds legal descriptions
2. Rights-of-way by prescription
3. Timber & hunting rights
4. Riparian rights
5. Recognition of survey blazes, rock property corners, and painted lines
6. Identification of tree and plant species
7. Knowledge of wildlife presence on property – both friend and foe
8. Precautions when dealing with bears and other predators
9. Inclement weather & natural event survival skills
10. Ability to read topographic maps
11. Knowledge of compass & GPS methods for orienteering
12. Authentic & accurate records of properties listed & sold
13. Use of all-terrain vehicles to navigate properties
14. Ability to bush-whack through unimproved forested land

Get the picture? The services provided by a land specialist reach far beyond the boundaries of town limits, paved streets, and cookie-cutter homes. The land specialist must be able to both expose buyers and sellers to all physical aspects of a large property, while at the same time protecting them from the potential for falls, hypothermia, negative wildlife encounters, and the effects of sudden changes in the weather.

So . . . planning to buy or sell land? See the difference in specialties within the real estate business? Enough said.

Have you had any unpleasant experiences while looking at land? Tell us your story!

Friday, June 19, 2009

Supply – demand – supply – demand – supply – demand . . . .

When supply is up, and demand DOWN – prices fall. When demand returns and supplies begin to shrink – prices go UP. In the land business, the past two years have seen supply going up with prices falling. Don’t you wish you could buy the land you’ve wanted just as the current recession cycle hits its lowest point?

Ooops! You already missed it. The cycle has already begun its “recovery” phase. It started Christmas week ’08. Fortunately for you, the change begins as a period of more “activity” – land buyers begin to awaken and ask questions, ask for information, and begin “looking” at properties.

For example, in April we experienced three times the inquiries that we saw in February and we showed 288% more properties during the same period.. Also, yesterday, CNN Money Online reported that new home starts were up 17% in May.

So . . . we’re already 6 months into the recovery stage. We expect actual sales to begin their recovery beginning now and over the next 90-180 days. During that period, properties priced at the lowest levels are most likely to be snatched up. Once that happens and demand heightens even further, you can be sure prices will begin their rise.

You’ve no doubt heard the “shoulda, woulda, coulda” expression that is the excuse most often used to say “I missed an incredible opportunity!” For example, one owner recently priced his 21-acre property at an incredibly low $39,000. We’ve had over 105 calls, many from individuals who want to know “what’s wrong with the property?” (it’s located near the Blue Ridge Parkway on a state road with incredible views). No one has bought the property, yet it’s the absolute best bargain we’ve had in years. Go figure!

Friday, June 12, 2009

Plan to buy land this year?  If so, have a boundary survey completed by a registered surveyor.  Then follow up with title insurance "as to matters of survey".

First the survey will identify the boundaries of the property you plan to buy.  This is very important, especially if the property hasn't been surveyed in recent decades.  As a result of low-tech - or no-tech - equipment available in years gone by, many mountain properties are not what they seem.

Often there are property overlaps between adjoining properties, meaning that two or more property owners may claim ownership of the same turf.  This usually results in a "boundary dispute" which must be resolved.  There can even be a "no man's land" between properties - land that is owned/claimed by no one.

It is also quite common for a property owner's deed to call for 114 acres, only to learn after a survey that there are only 100 acres.  On rare occasion, the reverse can also be true.  One property survey showed a full 100 acres less than the owner thought he owned.

Ask the surveyor to "paint" the property lines for a more permanent display of boundary locations.  This will avoid misunderstandings in later years.

In summary, don't take the owners word for the acreage and location of boundaries you are purchasing.  Insist on having a survey completed (buyers pay this bill), with the final purchase price based on the actual surveyed acreage.

Do you think most Americans are more likely to buy a home toward the end of a "recession" while prices and interest are at their lowest point, or wait until they're sure the recession is over and recovery has begun before buying? Please send us your comment as either "recession" or "recovery". We want to know what YOU think!

Are you aware that financing is still available for land buyers? Several lenders in our area have told us they stand ready to make land loans. The minimum down-payment we are seeing from commercial banks ranges from 25%-30%. These banks generally prefer a 10-year term, with some going out as far as 15 years. Another lender, Carolina Farm Credit can loan up to 85% for up to 20, and occasionally 25 years.

If you answered "recession" to my first question above, don't let concerns about financing hold you back. Some property owners are also beginning to offer various forms of "owner financing" which do not include the usual bank fees. If in doubt, ask me!

Want to know where I think we are right now in the "recession" vs. "recovery" cycle? Here's a clue: in April we had 3 times more phone calls and land showings than in February. What do you think?

Monday, June 1, 2009

So . . . the other shoe has dropped!  GM has filed bankruptcy – while Ford has plans to ramp up production by 10%.  Sounds like good ‘ole American entrepreneurship to me.   In fact, one individual here in our office bought a Ford over the weekend – telling the dealer she planned to stay away from GM.  The same goes for me – after buying my last 10 vehicles from GM.

For months now, I’ve been saying that the American business cycle is self-correcting when left alone to do its thing.  It’s hardly been left alone lately, but still has life left in it.

May 31, 2009

COMMENT: Today is first time I read your blog. Informative insights. Enjoyed. - S. Waldoch

Friday, May 29, 2009

Thursday, May 28, 2009

Know the difference between state road frontage and a right-of-way (or lack thereof)?  You'd better – if you plan to buy mountain land.

I have a written right-of-way (also known as a "deeded" right-of-way) from each of the other two landowners, giving me the legal right to use the driveway which is 18’ in width.  Because the road is not state-maintained, I share the cost of road maintenance with my neighbors.

Finally, some parcels of land that do not have state road frontage, also do not have a “deeded” right-of-way.  We say these parcels are "land-locked" because they have no legal access.  Even if a driveway exists over the property of others, that does not guarantee legal access.  Beware of this type property.  You will not be able to secure title insurance, nor borrow money to build a home – much less be allowed to enter the property.

Wednesday, May 27, 2009

Whoa!  Listen to this: "Economists: Recession to end in 2009" and "Existing home sales rose 2.95% in April".  Again CNN Money OnLine.com hit the nail on the head in this morning’s headlines.  Remember your Economics 101 course? You know - when they told you that after "Recession" comes "Recovery". 

Tuesday, May 26, 2009

Monday, May 25, 2009

For 2 years, I’ve heard nothing but "I'll wait to buy when prices come down!"  Well, they did.  The average asking price for properties over 100 acres as shown in MLS was $9,028/acre in October, 2007.  Now, the average asking price is only $5,747/acre.  That’s a whopping 45% drop in asking prices. 

Asking prices reached a high of $11,701/acre in May of 2008.  Actually, the average asking price over the past 19 months (for all 100+ acre properties in the Wilkes MLS) was $8,223/acre.   Incidentally, the average asking price for properties here at Mountain Land Company during the same 19 months was only $4,846/acre.

Hmmm.  I guess that means properties listed with Mountain Land Company were priced 41.1% lower than all other properties listed in MLS throughout the entire recession period.  By the way – the good news is that the land recession is over – thought you might like to know!

What does that mean to you? It means that in another 3-6 months, you may have missed one of the greatest investment opportunities of your lifetime – the opportunity to "buy low" the most dependable appreciating asset this country has to offer. "Shoulda, woulda, coulda" is not just a cute expression – it describes the perennial lament of those unwilling to implement the most important of financial decisions in their personal lives – where to invest their money wisely.

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