Price
11000000+ USD
Lot Size
0100+ acres
Home Size
010000+ ft2
Get instant customized notifications for the properties you’re looking for.
Alertik iOS Alertik Android

Re-introducing the Amazing Advantages of Undeveloped Land

Articles

Published on Sunday, July 26, 2015 by Land Century

Purchasing land for the purpose of flipping can and is profitable. It doesn’t appreciate like properties with dwellings, but there are other ways to benefit. You will have fewer costs, more tax breaks and great profits.
The tax advantages come with criteria. Number one, do not put a dwelling or make significant improvements on your raw land with the intent to sell. The IRS has a word for people that do that, and it’s called a “real estate dealer.” Why do you care what they call you, because you will pay far higher taxes on it?

The second point is you only pay taxes on the profits gained from the sale of the property and not the total price. This can add up to significant savings over time. Land, unlike houses, does not depreciate. Raw land just sits there building itself up with little or no help.

Long Term Investments

The taxes on long-term investments is about half of what you pay for the short term. Long term is defined by the IRS as over a year. Then you can parcel out your raw land to sell it and keep your tax rate lower. Selling pieces or plots of land with a payment arrangement is good for both parties. The buyers can acquire land they may not otherwise be able to afford, and you maintain a lower tax rating and still make a profit.

Take advantage of LLC or a partnership corporation. It not only guarantees the protection against personal liabilities for business it changes how you are taxed. LLC members are taxed through the company, and all members report their profits and losses on their taxes.

Liability is limited but not eliminated; wrongful or unlawful acts are not protected. The profit sharing is decided amongst the members and written out in percentages. The only disadvantage is if one member leaves the company is dissolved. You should include this possibility when you first set up the guidelines and address this problem and solution then.

A few more deductions like this one, the interest on your net investment income for the year is deductible, and interest on the total investment is added to the next year. Additionally you can deduct the property taxes on the raw land and the expenses like fees for attorneys or permits. These can be limited to 2 or 3 percent, and you must itemize to deduct them.

Getting a Bank Loan

This is the most complicated way to purchase the land you want. You must have top of the line credit and income that exceeds your current expenses, the price of the land and the interests for the loan the bank is giving you.
Your other and best options are owner financing or a home equity loan if that is possible. Don’t let the details discourage you. Just determine your budget and give us a call, we welcome the chance to help you locate and purchase the land you want for your family’s investment.

Business Only Bits about Raw Land Purchases

Some people may think buying land is all about looking at it and signing the contract. It is far more involved than that, and this is your map to buying safely. Every land sale company should offer this information for you or the resources to find the answers to your questions. We make a point of it.

The Basics

The information below should always be included when possible. We include websites to access further data if needed.

information needed when buying land

Whether or not it is in a flood zone, if a septic system can be used and what kind of well you will need may have to be decided by soil test and local county restrictions. For this reason there are usually two websites for you to explore those issues and more.

There is an article that can explain the types of deeds used and what you should know about them. It is important to read that before you buy. The listing id and parcel numbers will be needed to access any specifics about the property itself. The zoning will tell you if it can be used commercially or as a residential home site. If you plan something special call the planning and zoning department at city hall to conclude if it’s acceptable. Legal road access is a huge expense if it is not already included, so check this out ahead of time.

The utilities may only say electricity is accessible. That is because not all rural areas can get electric connections to their homes. Water is often well water and sewage can be city or a modern septic system, but it has to pass a perc test. Ask if one has been done so you don’t have to pay for another one, and what the results were. It is all about the soils ability to drain.

You also want to know if this was a dump site, and if a pack test has been done that deems it a potential building site. The environmental safety of the land and the mineral rights must be questioned as well. Taxes are always important as are the fees and interest rates. That combination will give you an idea if this is a money making opportunity or not. The local work, education and recreational data will be a selling point if you plan to build and rent or resell at some time in the future.

We welcome the opportunity to walk you through each step of your new adventure in land ownership, we are just a click away.

 
Share this Article
New Construction Project for 56 Unit Townhomes in Titusville, Florida

EXECUTIVE SUMMARY 5.54 ACRES / R-3 ZONEDLocated on 5.54 acres in the heart of The Beautiful Overlooking the Indian River City of Titusville, Florida. 4.178 acres zoned R-3 (Residen...

Featured Listings

10 Acres
Sierra Blanca, TX
79.95 Acres
Eureka, NV
5.54 Acres
Titusville, FL
0.23 Acres
Dunnellon, FL
1 Acre
Willcox, AZ
0.3 Acres
Shelter Cove, CA
1.68 Acres
Sanders, AZ
0.23 Acres
Coldspring, TX
5 Acres
Blanca, CO
0.23 Acres
Port Charlotte, FL
108 Acres
Eagle Lake, ME
0.16 Acres
Ridgecrest, CA
Waterfront Liquidation - Own Waterfront Lot Today! Tennessee's most popular camping place!

ENJOY WATERFRONT PROPERTY FROM ONLY $12,800Camping is one of the most America activities you can do. One of the most beautiful places we visited is located minutes away from Tennes...

Live Your Dream: Start Your Own Business With Perfect Package! 260 Arizona Lots Ready for Land Wholesaling Opportunity! Buy & Flip with LandCentury.com Network!

Western Paradise location offers up to 500% profit potential The easiest way to start your land flipping businessWe give you the platform, you earn the rewardsLandCentury, one of A...

Featured Profiles

Verified Wholesaler

Westview Land

Verified Wholesaler

GreenBridge Holdings, LLC

Verified Wholesaler

Land Century, LLC

Verified Wholesaler

BuildFortune, LLC

108 ACRES OF LAND NEAR EAGLE LAKE, MAINE IS READY FOR YOU!

We have an exciting opportunity to own land near Eagle Lake, Maine. 108 acres parcel of beautiful, untouched stretch of natural forest is located in New Canada, Maine near Eagle La...

Great development opportunity in The Enclave at The Palms, Northern Belize!

The Enclave at The Palms is a residential subdivision located in the Corozal Province in Northern Belize. This part of the country is very popular with expats, and The Enclave is l...

Be Smart, Live Well in North Port, Florida! Great opportunity!

North Port, Florida, is the place you have been waiting for. One of biggest city in Sarasota County, North Port still feels more like a small town and people hope to keep it that w...

120 acres for sale in beautiful Sierra Blanca, TX

Have you ever imagine yourself in the role of Texas cowboy in popular western movie? Where is just you, desert and wild nature? Or you were dreaming of build your own big rancho wi...

Unique Development Opportunity in Butler Bay, St. Croix, United States Virgin Islands!

Do you believe that dreams come true? That there is paradise on the Earth? That there is a place where you can escape from cities and just enjoy nature how it is?One of this places...

Unrestricted Land - What Does It Really Mean?

Unrestricted land usually means that the land doesn't come with the same restrictions homeowner's associations impose, like home size, color or style. You may be able to place a mo...

Featured Listings

10 Acres
Sierra Blanca, TX
79.95 Acres
Eureka, NV
5.54 Acres
Titusville, FL
0.23 Acres
Dunnellon, FL
1 Acre
Willcox, AZ
0.3 Acres
Shelter Cove, CA
1.68 Acres
Sanders, AZ
0.23 Acres
Coldspring, TX
5 Acres
Blanca, CO
0.23 Acres
Port Charlotte, FL
108 Acres
Eagle Lake, ME
0.16 Acres
Ridgecrest, CA
What are Tiny Houses and Are They Worth It?

Tiny houses are taking the world by storm. A lot of people are selling their larger homes and building or purchasing a tiny home. And they’re saving a lot of money in the process...

How Much Does It Cost to Build a House Yourself?

Imagine being able to build your dream home with your own two hands. As romantic as it sounds, building a home takes a great deal of time, work, dedication and skill. But if you ha...

Featured Profiles

Verified Wholesaler

Westview Land

Verified Wholesaler

GreenBridge Holdings, LLC

Verified Wholesaler

Land Century, LLC

Verified Wholesaler

BuildFortune, LLC

What are Real Estate Investment Trusts and How Do They Work?

When it comes to real estate investments, you'll see a lot of people talking about REITs, or real estate investment trusts. Some people call them "real estate investment stock."The...

Business Ideas for Vacant Land - How to Create Income Producing Assets

Vacant land can become an income producing asset. Land is valuable, and while land may be most valuable when a structure is built on it, this doesn't mean it can start producing in...

How Blockchain Could Change the Real Estate Industry

You've heard of cryptocurrencies – unless you've been living under a rock – but you're not sure how they work. Bitcoin, the world's largest cryptocurrency, is run on what's cal...

What Does the Right of Refusal Mean in Real Estate?

The first right of refusal in real estate is a provision an agreement or lease that gives a potentially interested party the right to buy the property before the seller negotiates...

Avoid Being Scammed on Craigslist and eBay When Buying Property

Just about anything you can imagine can be bought and sold on eBay and Craigslist, from old toasters to vintage record collections, and yes, even property. While these sites have c...