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Land Trap

Valuable information you need to become a success in buying and selling land.

B.K. Haynes’ monthly column on topics of interest to the real estate investor and buyer. To receive your monthly issue of the Land Trap Column via e-mail sign up below.

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Below are samples of the complexities of real estate made simple in Mr. Haynes' monthly column that appears in regional real estate sales magazines.

JUNE 2008

Can I get a "Homestead Exemption" to protect my home from foreclosure?
This law exempts a homestead (real estate occupied by an owner as a house) from seizure or forced sale to meet general debts, excluding mortgages and tax liens. In certain states the law has been expanded to include exemption from some or all property taxes. As in most of the U.S., the exemption is not available in VA. W. VA, or MD. more...

MAY 2008

What is a contract for deed in a land deal?
This is a transaction where the deed to the property is not delivered by the seller until a large degree of equity has been established. Buyers with low credit scores and small down payments often buy land this way. more...

APRIL 2008

What is a life estate?
This is a reservation in a deed by the seller to retain lifetime use of a portion of real estate--such as a home and a few acres from a farm. Upon the death of the seller, possession of the life estate will default to the buyer or his assigns. The life estate can have grades of established and verifiable, value, depending on guidelines set within a particular state. Fundamentally, such strictures are based on life expectancy standards, though evaluation of the property for tax purposes may also be a consideration. A buyer holding a mortgage on property with a life estate can view the deed to such real estate as an asset that can be sold at face value, discounted for sale, or used as collateral for a loan. more...

MARCH 2008

My neighbors want me to place a scenic easement on my land to prevent it from being developed. Good idea or bad?
A good idea for some people and a bad idea for others. For those whose major concern is to stop growth, the concept may be appealing-though possibly harmful to their bottom line when they go to sell. The idea would likely turn off sellers who are seeking maximum profits, since investors, as a rule, would likely pass on land with this type of easement. more...

FEBRUARY 2008

I've heard you can hike profits on land by using gold as a deposit. How does this work?
Assume you are buying land for development, and the closing will not occur for 6 months. If your feel that gold will rise dramatically within that period, then offer to escrow the deposit in the form of gold coins. Should the value of gold increase by the time you close, the seller can agree to credit the increase in value to your down payment. If gold drops in price, you agree to offset the loss by paying more for the land, though the amount of your down payment can remain the same. more...

JANUARY 2008

Will 2008 be a good year to invest in country properties?
The real estate market has obviously bottomed as evidenced by government and private sector measures to eliminate the credit crunch. Smart investors will be seizing phenomenal opportunities during this election year. more...

DECEMBER 2007

Can I invest in raw land using funds from my retirement plan or IRAs?
Yes, but you must handle the transaction through an intermediary who would also disburse any funds for development. Check with your CPA or tax advisor for details. more...

NOVEMBER 2007

Are we headed for a recession in 2008?
I don't think so. I feel the current credit crunch is simply the expected precursor to the recession of 2010. History in the 20th century shows precursors to major socio-economic turmoil occurring in the later part of each decade, this prior to the emergence of an even more disastrous period at the decade's end. more...

OCTOBER 2007

How can I decide what my land is worth?
Values established by counties for tax purposes are not always current; nor do they reflect ups and downs in the market. And real estate agents often place unrealistic values on land to obtain listings or to buy them for their own account. Other agents refuse to offer opinions, since sellers are sometimes not serious about selling and are often seeking free advice. Serious sellers who do not know what price they want for their land should pay to have it appraised. more...

SEPTEMBER 2007

TAX QUESTIONS AND ANSWERS

What deductions do I get for renting out my vacation home?
Properties rented out for an average of 7 days or less in a taxable year are not considered by the IRS to be rental real estate and are therefore not eligible for a deduction of up to$25,000 for losses against income derived from your primary job, profession, or trade, this if your magnified gross adjusted income (MAGI) is less than $100,000. more...

AUGUST 2007

“BOOMSDAY” AHEAD FOR COUNTRY PROPERTIES
Buy at the bottom and sell at the top. This is a familiar and recommended mantra for investors considering the purchase and sale of homes, land, stocks, commodities, or financial instruments. This article discusses the real estate scene as I see it for the rest of this decade. more...

JULY 2007

What follows is the next part in a multiple part series about the real estate market in the near future.

Sample reasons for optimism
(19) The years 2007 to 2009 should be of particular interest to investors in vacation homes, since the huge looming army of baby boomers, advancing through their peak purchasing years, are now closing in on the second home market. more...

JUNE 2007

What follows is the next part in a multiple part series about the real estate market in the near future.

Sample reasons for optimism
(16) If you plan to sell your home in the near term, follow closely the anticipated upswing in real estate prices that should be evident in the first half of 2007, this as the current and unprecedented surplus of homes in many regions is largely wiped out through the whirlwind of price cutbacks and purchase incentives now gaining strength in the real estate market. more...

MAY 2007

What follows is the next part in a multiple part series about the real estate market in the near future.

Sample reasons for optimism
(13) Current demographic data from the U.S. Bureau of Census charts show the degree of home ownership in this country rising to a level exceeding 70% of the population base. Most of this increase in ownership will come from the purchase of lower priced homes. more...

APRIL 2007

What follows is the next part in a multiple part series about the real estate market in the near future.

Sample reasons for optimism
(10) Real estate in the following sectors should benefit from an aging population: (1) vacation and resort properties, (2) good usable land close to small towns and near major cities, and, (3) well-developed apartment projects. more...

MARCH 2007

What follows is the next part in a multiple part series about the real estate market in the near future.

Sample reasons for optimism
(7) The strength and thrust of baby boom spending will continue to energize the economy until 2010. Historical data shows that a prolonged recession is likely to take hold at the decade’s end more...

FEBRUARY 2007

What follows is the next part in a multiple part series about the real estate market in the near future.

Sample reasons for optimism
(4) Demographic data show that consumers still have immense capacity to buy homes and land. It is a myth that excessive consumer debt loads and unusually low interest rates have preordained an imminent real more...

DECEMBER & JANUARY 2006

What follows is the first and second part in a multiple part series about the real estate market in the near future.

21 Reasons the sky ain't falling on real estate
At the present time, a tsunami of price reductions by sellers and builders has engulfed and watered down profits and consumer equity in the real estate market. Notwithstanding this unfortunate turn of events, it is highly unlikely--as some pundits would suggest–that sellers are more...

NOVEMBER 2006

If the economy keeps growing, when will we see the
next bust or crash?
Our economic future is largely shaped by demographic trends.
Astute investment advisors see real estate values rising
modestly until the decade’s end, after which a major
depression is expected to take root. Trend line charts of more...

OCTOBER 2006

Why do I need a “perc” test?
Such tests determine whether soils will accept sewage disposal
systems connected with building construction. In rural areas
without sewers, a conventional in-ground system is usually
preferred by land buyers because of low cost more...

SEPTEMBER 2006

I’m negotiating to buy a farm. Should I buy with or without the crop?
If the crop looks good, it may pay you to bargain for the crop if you can
close after the harvest. The income you receive can offset all or part of your down payment and possibly cover the real estate taxes; plus you can deduct from your current year' s income that amount of money you more...

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