Control Of Raw Land For Future Infill Investing
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Contributed by: Lucius Foster
Lucius Foster Properties
Read more archived articles about Land and Development
I am staring out of the window at the Calif. Real Estate Scene. The weather is normal. Good and Bad, Sunny followed by Rain. Tiny little earth tremors, snarled traffic and our new Governor will give diction lessons to all the native born. Yes another day in LaLa land
The requirement for Housing fashioned out of shipping containers continues unabated. After all we need housing that is: Earthquake Proof, Termite Proof,
Bullet proof, Fire proof and must of course due to heavy flooding. Float!
Is all this symptomatic of a turning market or merely an indication of an increased lunge for the stars?
I have been wandering the area of Los Angeles County. Good areas, bad areas. Very Suburban and some impacted by commercial, multiple dwellings and junk yards.
My search is for raw land, encumbered with little other then weeds and an occasional Coke Bottle or Beer Can.
I would like single lots surrounded by tract houses. I will take the single house on two lots. Buy, then sell the house, keeping the lot which is vacant. I wish to build an inventory of lots.
Where possible I buy the lots if they are far enough below the present retail market. Of course I also try to make purchases with as little cash as possible.
For instance I may try and get the buyer to come back with long term financing and full subordination of their note to allow future construction financing. I may in many instances overpay for the lot in exchange for a note coming back at no interest, all monthly payments to apply on the increased principle balance.
I may bargain a 99 year lease monthly payments only no principal reduction and options to purchase scattered over the life of the lease. Name your type of paper and I am sure I will use it in these purchases of land. Trying to fullfill the requirements of those who are offering to sell and, looking forward to my requirements at time of future lease and or sale.
I need a great many lots and I have arranged with some investment companies to participate in this endeavor. After all it is a repeat as to what happened in England back in Elizebeths time. Only difference is I don't wear a crown or been admitted to holy orders.
I see no reason we cannot do the same here in these Semi United States.
The need for lots is caused by my desire to create Low Cost Housing without creating an ongoing slum. I think the answer is infill, building these Container houses in and among existing tract houses and suburban single family developments. This does prevent the creation of a slum or a "Projects".
Of course this is merely the beginning. I would like to utilize Los Angeles County with its mix of races, creeds and ethnicity, an area in which to learn and correct mistakes in judgement, application and construction. Then spread out to most of the cities of the United States.
To that end there is a need for lots and of course there is a profit to be obtained in buying lots cheaply and then holding them and leasing the lots long term as we erect upon them a container house.
Supose that all the scattered members of TCI each went out and bargained some owner of land into the dirt, price wise and payment wise. Made deals that called for no payments until completion of construction. That called for no interest on Seller take back mortgages merely principal payments scattered over 40 years to achieve an interesting yield. With periodic times set for purchase in full.
Would certainly allow all of the members of TCI to go out of the box as to how to buy and how to pay. Would give those among us who are below poverty level, a starting point on which to initiate the slow steady climb to solvency and all thru control of infill lots in their area of residency.
"Under all is the land, the basis of true wealth."
If this is of interest, I will post a list of the various methods used to buy raw land with no money, little money, lots of money. Subordinated Mortgages, Partial Subordinated Mortgages, Contracts of participatiion etc. etc.
I am sure as each of us walk around our areas we will see vacant lots. Given up on by their owners, been a fire and the house was burned down, or the builder of the tract just ran out of steam and stopped with some lots still vacant. Perfect for a Low Cost House so modern in design and execution that you would think Frank Gehry or da Mies were involved in its creation. Of course the thought of a profit for your efforts never crossed my mind. But it is there.
Most of the heavy increase in prices is in finished dwellings. The price of raw land does not seem to have kept step. So now may be the time to buy. I know I am and I ask how about all of you? Does the thought of a profit on a piece of land in whose purchase you have not used money but Negotiation inspire you to act? I hope so. Gather some of the stuff of nature. Mark well where you buy cause we are going to need an awful lot of lots. Every portfolio should have a few lots scattered amidst the High Rise apartment houses, Shopping Centers and Pied a Tiers.
Lucius
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