Land for Love and Money by Reid Lance Rosenthal

Author:Reid Lance Rosenthal
Language: eng
Format: epub
ISBN: 9780982157657
Publisher: Rockin SR Publishing
Published: 2012-01-01T05:00:00+00:00

Yes, conventional financing for land is currently problematic. Regulations of every type and nature are ever constricting. But the essence of land, its soothing balm to your heart, protection for your wallet, and the wide range of goals and objectives land ownership can achieve for you and your family, have not changed. In fact, in my opinion, the current macroeconomic brouhaha has merely heightened the importance and benefits of owning your chunk of earth.

Fortunately, in adversity there is always opportunity. The last time I saw land prices this low on a relative basis was 1979 through 1982, Jimmy Carter’s last year, and the first several years of the Reagan presidency. The situation then has many similarities to today’s environment—although there are some differences that have evolved with the passage of time.

There are always sellers who want or need to sell. This chapter offers some helpful insights for those of you who fall into in that category. For purchasers, or would-be purchasers of land, my opinion is that there’s never been a better time to buy than in the last three decades. Most types of land (other than residential, standard subdivision building lots) have held price levels far better than housing, and certain types of land with production potential are actually increasing in value. Land prices—other than production ground—remain depressed from their 2005–2007 highs in most areas. Over the last few years though I have not personally purchased, I have assisted others inthe buying process, so my opinion is based on sitting in both seats. Some of the outfits with which I’m associated have land for sale. I have the unique insight that flows from talking to many potential buyers and realtors. Over the last six months the number of inquiries has increased, the quality (financial wherewithal of those inquiring) has strengthened, and on a market wide basis there are more contracts and deals in most locations than at any time in the last three years. While housing has not yet bottomed out in most markets based on facts, figures, statistics and languishing prices, I believe—barring unforeseen macroeconomic cataclysm (which might be exactly the time to already own a piece of land and be self-sufficient), the land market appears to be moving upwards from its bottom.

In my mind, there are two basic types of real estate. I call them duplicable real estate, and one-of-a-kind real estate. Here is the way I view this foundational reality:

Anything that can be built—an office building, shopping center, residence—can be duplicated. Someone can always build another. But man cannot create a hill, a view, a river, a vista. Land is one-of-a-kind. There is less and less of it available.

More and more over the past ten years, I’ve seen folks buying for the long-term—not just their lifetime, but for their family legacy. That land is probably off the market for decades, if not longer. Increasing regulations has removed certain parcels from the mainstream market. Who wants to buy a problem? The ten thousand people a day joining the ranks of retired baby boomers have added additional pressure on the finite supply of land.

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