Agreed. I never dabbled in to this at all, but as a homebuyer, I can tell you most people like myself like “public” utilities (public water/sewer). And land where this is easily accessible is preferred. Who wants to deal with a well or cesspool considering the maintenance involved and the higher prices? I will say this, I “know a guy” who buys “less desirable” land and leases it out to utility providers. They sign long term lease agreements (20-30 years) where they pay him a “monthly” rent to run power lines, cell towers, gas pipelines, solar panels on his property. Check for the need or desire first before purchasing. Apparently they refrain from purchasing the land themselves for a multitude of reasons (mainly to dodge certain tax, asset and regulatory headaches). He has one plot that is a 1,000 acres. It has a natural gas pipeline running through it underground, and 400 acres is nothing but solar panels. He gets like $14k per month for the next 20 years just on that plot alone, and that particular plot he inherited from his grandparents, all liquid after taxes. The utility provider insures the property. Oh, and get property along a major highway and rent space for billboards!
Bingo!!! Yep, yep
You also have to be careful of the tax ramifications - there is additional federal tax due on non-owner-occupied property sales.
True…but at least be aware that the profit made isn’t all pocket money - Uncle Sam wants their piece too. I made that mistake when we sold our property in Polk County (5 acres) - didn’t claim it as income (never even gave it a thought) - IRS caught it - no fun.
We know a guy who is leasing his plot of land sitting under utility lines for 30 yrs to big box companies like Walmart and others to store their giant shipping containers and making good income. I really need to think big…ugh
I need to stop now, going way off the subject again:(. They will shut down this post soon:(
Keep in mind taxes on a sale is different than taxes on income from a lease. The utility shares some of that with the landowner. The reason why the landowner still gets so much income after all the lessee’s concessions is it “locks” the property for the duration of the lease. The lessor can’t do anything else with the property while the lease is in effect.
Oh by the way I was trying to recommend others to get more business with this post that was flagged by someone on NC as solicitation! Ugh.
I’m not talking about income from leasing land or anything - I’m just talking about the profit made when you sell a piece of investment property (example above - paid $5.5k, sold for $60k - $54.5k profit) - taxable profit. The profit from “flipping” if you will. Remember, this started out as LandtrustUSA and vacant land.
Like VIP said - this has gone way off topic.
Sorry - that wasn’t directed at you personally; that was at anyone whose eyes rolled back in their head at the thought of making that profit 3-4 times/year…ROFL!!
I will stop now, I’m off the subject.
I might be lost. My “utility” story involved vacant land.
All profit is taxable regardless of the source.
“Constructive and productive” conversation “normally” spawns off topic discussion by those enhancing (adding) to the original topic. It’s the main reason it almost always happens in a conversation or forum (as we can all see on just about every post in this forum alone). Expanding on a topic is just that, paints a better picture for the readers. As long as it’s civil and respectful, don’t see an issue myself! And if I’m being engaged by the reader/author, I’m going to respond.
Oh you will get a kick out of this one. There was a bidding war too. 
Because you said the above to me - so I responded to that…
Hi, all! This is Kim in Houston, TX. This is to clear things up for everyone regarding SMCampbellsignings post. I have several investor clients that I do these type of signings for here in the Houston area. These investors are simply buying “undesirable/unwanted” property (empty lots or land) from owners who no longer want it. My clients send me the Deed for signature, along with the payment check to give to the seller(s), and an envelope to send the Deed to the county for recording or back to the investor. Simple. Easy. I love doing these. If you do a good job for these investors, they will hire you over and over again. BTW… I am waiting to be paid for one I did for LandTrust.
And, what I have found out about these properties is, typically, they were purchased by the seller years ago as a place to build a future retirement or vacation home. Some developer bought the acreage and divided up the land with plans (promises) to develop a “planned community,” but… for whatever reason, the developer never fulfilled that promise, leaving the buyers with an “unsellable” piece of property. And, they’ve been paying the property tax for years. They are happy to get the “monkey off their back.”
Hope this helps. If you get contacted by one of these investors, I encourage you to give it a try. They pay well and are much easier than a mortgage loan, which has been the bulk of my business the last 19.5 years. I’m praying this new environment we find ourselves in doesn’t last long. My experience has been that lenders find a way to engage borrowers. We shall see… May you all live long and prosper! God bless!
I have done a number of these, they are generally small sales of undeveloped land. All of the ones I have done were under $2000. I received the docs, a check for the seller, and a check for me in the same certified package, along with return mailing materials, for every single one. I am always instructed not to hand over the check until the transaction is done and documents are signed. I have only had an issue with one. The guy that hired me did not hold me responsible, but I have tried to help him out. Return package got lost in the mail, so the signers cashed the check and the buyer does not have the deed. Signers are, of course, not answering the door or the phone now.
I would not agree that these are always a scam. These are usually someone that has a piece of land they inherited or something and have no wish to develop, so a land buyer snaps it up cheap. Whether or not you are required to do so, I would always advise that you obtain a fingerprint just in case.
Sadly, these group of land owners/sellers are not well informed or savvy. Unfortunately, they don’t know that their land worth a lot more than they think! No well…
Thank you for the information and reassurance. I did it and it was fairly easy. The conversation lasted longer than the signing. It was smooth and I was paid within days. I enjoyed the experience.
Good job, SMCampbell! Happy for you! I pray you get more of these signings. I now have 3 or 4 different investor clients that buy these lots on a regular basis. And, I’ve learned to enjoy my signers (at least most of them - lol). Live long and prosper! Take care!
Love them too. Although, some of the buyers don’t dig deep enough on what they are buying. Some of these are a waste of money. Like today, I found a nice piece of acreage that is gorgeous on top the mountain in Colorado for a great price. Cash only, no problem. My heart was pounding with excitement, I wanted to buy it now. I called the realtor pushed hard but he didn’t reveal. I had to dig deeper on my own and discovered it’s “landlocked property”! Ugh! No thanks.