I'm excited to share with you the opportunity to buy a piece of land that you probably never knew existed you're going to look at land in a whole new way I'm also going to share with you the many mistakes that people make you're not going to need good credit you certainly don't need to bank and you don't need to borrow money from anybody I'm also going to share with you some of the mistakes that people make when buying raw land that can cost you thousands to begin I want to share something with you that I
just recently discovered it's called Superfund Fu n d Superfund sites are sites deemed by the EPA the Environmental Protection Agency as somewhat in the past have been contaminated now these are sites often times owned by individuals they can sell those properties but it's imperative that they disclose the previous use of that property because that's going to make a big difference on what you can do on that land and not do on that land and most importantly your health and what's coming out of the ground in that land you see often times the contaminants that come
out of that land are there for decades to come now the EPA does do a great job at actually testing that land on a regular basis and producing reports on that land that's why it's important to know that when you find a piece of dirt that you like whether it be a large track a quarter acre track a 100 Acre track to do a little bit of research you can do that by going to your local library and most importantly Googling Superfund and going to the Environmental Protection Agency they do a really good job of
giving you a full list of where those sites are actually located now some of these sites still pull contaminated water out of the soil which is really important if you're going to be putting a well on the property and most importantly you're going to be living on the property so often times it may be a great piece of land for hunting on but not so much for living on another thing you need to be concerned with and really just to look out for is fracking now fracking is where they take a piece of land they'll
drill down hundreds of feet and they'll pressurize that land to push the gas out and in doing so a lot of people just have a fear or discomfort for that and they don't want to buy the land so you have to always consider resale when you're buying a piece of land whether you're going to build your home on it and you're thinking about reselling it you're thinking about subdividing it you have to know your surroundings all that stuff is public information it's just better to know it before you buy the land than after you buy
the land now the way you buy a piece of property without having a bank and having bad credit and never having to borrow money from anybody you have to know that there's raw land all around the country that is a ailable for sale for anyone that wants to buy it on owner's terms and often times these properties are not even available for sale a good website or app if you will to use it's called landglide l a n d g l i d there's no endorsement or anything like that it's just a personal app that
I use the app will actually show up on your phone you can drive around and it will show you who owns that property once you find out who owns that property you can go to your city your county your registered of Deeds office and find out more information on that property then you can do the research and actually find that property land owners name and phone number and personal information as a result you can ask them if they would be willing to sell you the property on their terms owner's terms now really quick I'm going
to share with you what owner's terms is and then how to negotiate a deal and how that works as far as closing and everything owner's terms is quite simply just like it sounds the owner sets the terms however it is negotiable regardless of what anybody ever tells you when you're purchasing a piece of real estate whether it be a land a house commercial it doesn't matter just because they tell you a figure doesn't mean you have to be satisfied with that but you just have to know going in that most of these properties you don't
need a credit check background check you just have to write a check and that check is for typically 10% of the value of the land or the purchase price so if you're purchasing a piece of property that's $50,000 like the one I'm walking on right now this is a $60,000 piece of land the owner would gladly take owner's terms it's going to take you a minimum of $6,000 down they'll typically finance that over 15 to 20 years at an interest rate of probably around 7 and2 to 82% now a good question that you may want
to ask is Wayne what can I do on that land you can do anything you want to in that land the Deeds going to be put in your name the title's going to be put in your name and basically they're going to act as the mortgage or just like a mortgage company or bank and you're going to pay them monthly installments typically not to the owner but but actually to a third party like a title or a closing attorney that way everything's done legally it's in your name you're paying for the property and as you
pay even though you're paying interest you're still paying down the principal balance and you also have to know a few check points not just can you do whatever you want to do with the property but what you cannot do with the property now what I talk about not doing the with the property is you have to look at the deed restrictions and the covenants and those are typically handed down from owner to owner over the past decades if you want to raise an Emu Farm if the deed restrictions and Covenant says you can't it's hard
to get those changed or if you want to raise chickens or cows or pigs often times there may be deed restrictions the most important of which is the size of home that you can build often times people call me and say wait I want to buy this house I want to put a mobile home on it but the restrictive covenants and the deed restrictions say you absolutely can't now even though you're not in HOA those are restriction say what you can and can't do they're pretty much set by the person that really cut and developed
that land from day one and look the last thing you want to do is to buy a piece of property and only find out after you bought that land that you can't put a double Wi on it or you can't put a single Wi on it or you have to build a minimum of a 2,000t home and you just wanted to build a, 1500t home all of that information is important that's why I always tell and suggest to people get a copy of the deed restrictions the covenants read over those make sure they mix and
Jive and Max with what you want to do with the property it's also a really good idea to get a survey get a survey on the property or at least get a copy of the survey and make sure it's pretty recent often times if a survey is 20 plus years old you'll want to get a new survey and here's the reason why an older survey can lead to encroachments encumbrances on the property for example you're buying a piece of property and there's somebody that set up a tent well you don't know whose tent that is
or where that property begins is there a fence on the property is there a storage building has the neighbor just built a piece of property and he's put a dog house or a fence or whatever it may be you need to know that going in and what a survey will do is they'll measure the meats and Bounds and they'll draw lines and pull string and they'll show you exactly where the property begins and where it ends that way you know going in if there's any kind of encroachments or easements or anything on the property that's
not supposed to be there you can then address it with the property owner and they can address it with the person that's encroached upon their property before it becomes your property now really quick let me explain the three encroachments easements and servitude so an encroachment is when somebody's encroaching upon the property an easement is when they've been granted an easement a rideway if you will to be able to cross onto that property the property that you're looking to purchase or the property that you own to get to another property and a servitude is from the
city the state the county and basically the servitude says we reserve the right own this piece of property and you can see that on a survey if it's for example power lines water sewer gas internet electric now look I need you to do me and yourself a big favor make a promise to me that if you buy a piece of property you'll get a title policy you'll get title insurance on the land it's so important to get title insurance on the land because if that land's vacant and there's never been any structure put on that
property you need to make sure you have a title insurance on it and here's the reason why the last thing you want to do is to buy that land and somebody comes and says hey I cleared trees off that land you owe me money well you're going to have a hard time proving that he didn't or did or she didn't or she did if you don't have a title policy a title policy protects your interest from the day you take ownership on that property until the previous owners owned it and you into the future and
it's a one-time purchase that you pay for at closing or the seller can pay for it for you on your behalf it's not that expensive on a $100,000 piece of land it literally may run you less than $600 but it will be well worth it now let's jump back over to the financing part of it and a good question to ask is what are closing costs we always hear of closing cost you have to understand that the only closing cost that you're going to have when you purchase a piece of land commercial residential it doesn't
really matter is the title policy that you have to pay and that really just depends on and it's negotiable some states the seller pays for the title some states the buyer pays for the the title the cost of closing you're not going to have all these closing costs one you're buying a piece of land and two you're not borrowing money from anybody so the cost to close the transaction typically runs you $400 to $500 and that's the attorney fee and then whatever your title policy will run you so you can see how you're not out
of pocket a whole lot of money if you purchase a piece of land it's a $100,000 track of land you bring $110,000 you may have to bring 11,500 total and it's yours but look before before you make it yours I need you to do a couple more things and hopefully you're writing these things down if not you can go back and watch this video as much as you want give me a thumbs up if you like this video subscribe to the channel my goal is to teach you everything I've learned in my nearly 30 years
selling real estate what you need to do it's so important and you should do this if you're buying any piece of property especially residential and raw land is get out and talk to the neighbors go talk to the neighbors if you're going to build a home here you need to know who you're going to live around and you can do that often times people say well Wayne what about a survey what about encroachments and leans and doing all this work listen if you find a piece of property that you like the contract's going to spell
out that you reserve the right to do your due diligence and that time frame is typically 10 to 14 days so you find a home property piece of land if you will that you like you're going to have 10 to 14 days to do your research that locks the land into you so no one can come along and buy it out from under you and it gives you time to do all of your homework and as I mentioned get out and talk to the neighbors talk to the people ask them go three or four blocks
in each Direction and find out was that land ever used for anything remember the super fund so look I'm not trying to be Debbie Downer but you got to know this stuff up front a couple of more things you need to really look at is what is the flood zone of that property often times if you see a little creek a little stream it looks real good looks wonderful you can kind of dream of babbling brook that property May flood and you need to know your flood zones you can research that but quite simply there's
a b and c all of them are flood zones but C is the best B is not so good a can be the worst but it doesn't necessarily mean you're going to flood every year it just means that you may be in a flood area and it may flood once every 10 years in that case you need to know up front better than later to make sure you can build your property up now another one and this one's really important especially in certain parts of the country and that is mineral rights and water rights a
lot of people say well Wayne what's the big deal with mental rights and water rights I'm from Nashville Tennessee and there mental rights water rights really not a big deal I live now and have been for 15 years in Southern Louisiana and I'm going to tell you there's a lot of oil we down deep underneath this land so anytime a piece of property land commercial anything is sold the seller can keep their mineral rights and you need to make sure you know that going in So when you buy a piece of land that the mineral
rights are transferred and it's it's really simple it's just written in the contract most real estate broker companies if you've got a good Agent they use a standard state issued contract most of them are state required contracts and in those contracts it says that the mental rights will be transferred to you you just need to make sure that when you buy a piece of land no one's going to come encroaching up on your land knocking on your door with a bunch of equipment that says we're about to start drilling for oil or drilling for water
and look if you want to get a really good deal on a piece of land there are land foreclosures you can go to findy foreclosure.com when you go to find my foreclosure.com you're going to see every foreclosure available for sale you'll see really cheap houses affordable homes bankruptcies tax sales you name it at find my foreclosure.com and yes land is available there for sale and just know this you can do your due diligence you can have it inspected you can do your research and try to pull surveys once you make an offer on the property
if it's bank owned you can deal reserved the right to do any sort of inspections but that doesn't mean that the bank's going to make any repairs or anything when you buy any piece of property from the bank 99% of the time you're buying it as is where is however you can get some really good deals on a piece of raw land just use this video as a good checklist take notes go down that list if you contract something that's a foreclose or any piece of land for that matter and make sure that you make
sure that you're comfortable once you sign on the dotted line I'm Wai try Turner thank you for watching the video give me a thumbs up subscribe to the channel I promise you you will learn something new about real estate in every episode
