מומחי ה LAND CONTRACT לדעתי כדאי לתת על זה דגש כאן. העוצמה של הכסף כאן באה לי…

# Entrepreneur of the week Yossi Beit Yosef # Post 2
Land sounds boring? – Let’s check!

– “The land for immediate construction?”
-“No”
– Is the land thawed for construction?
-“No”
– “Is the land intended for construction?”
-“No”

– “So what can be done with the land?”
– “I’m glad you’re asking – why did you not ask this question as a first question?

Most Israeli investors / entrepreneurs ask the same questions from a worldview that land is intended for construction only
-This is of course a wrong worldview.

I’m sure there are people here in the audience who have never been interested in the subject of land out of another misconception
“There is no current income from land – it’s not like rented apartments” –
-is that so ?
Probably some of you are rolling your eyes – “What can you get a monthly income from land?”

Let’s see what can be done with land?
The land industry is a huge niche in itself and is also the basis for any type of real estate on earth, in fact every one of you who has ever bought real estate of any kind also paid for a relative share in the value of the transaction determined by the value of the land
So no matter how we look at it we are all “land buyers”

What are lands used for?
– Civil construction – residential + commercial (this is what I call “traditional real estate”) and most of you are engaged in the field of residence (multi despite being considered commercial – belongs to the residential category) Some of you are engaged in commercial real estate (hotels, nursing homes, commercial centers , Offices, storage, mobile home parks, etc.)
– Public construction – public institutions, internships, schools, kindergartens, etc.…
– Construction of infrastructure and transportation – roads, trains, airports, bridges, etc.…
Minerals, mines and natural resources
– Crops – Fields and orchards (fruits and vegetables) – Farms in English Farms
Farm for agricultural products originating from cattle, sheep and other animals – Farm in English Ranch
– Forests – Growing Trees for Industrial Purposes (Unique Branch Known as Timberland)
Recreation
In the United States, there are vast spaces that allow for different types of entertainment, which do not exist in the country and are not in our awareness as Israelis. In the US we can find hunters (a very strong industry) who hunt everything: pigs, ducks, deer and more… To this day I try to gently reject a colleague’s invitations to join him for pig hunting Lily
“You were in the IDF… I’m sure you’ll have success in hunting” ????
People go on fishing holidays on the shores of lakes and make a good living from the tent industry and rent the equipment or buy themselves a private piece of land that will be available to them whenever they want to relax and get out of the crowded city.
So just as there are real estate entrepreneurs, there are Restriction entrepreneurs who purchase or rent areas that allow them to operate various recreational facilities (kayaks, skiing, camping, etc …)

Hops and without noticing – we got an answer to the question – how can you generate a monthly income from land?
Renters:
Operators of leisure facilities
Farmers
Farmers
One of my favorite ways to generate monthly income from land is by selling land using the “rent with option” / “owner financing” method.

About a little over 3 years ago I bought remote land in the Arizona steppe, the owners were heirs who did not know what to do with “this thing” that fell on them and they were happy to get rid of the land, the price I paid was about $ 500 for an area of ​​about 3 acres and I sold it Priced at about $ 11,000 in installments of $ 300 per month
Guess – how much was the down payment? … True $ 500!

I did not mess with tenants, I did not mess with repairs and the toilets did not break down in the middle of the night, I did not even get a single inflated bill of repairing a broken windshield from the management company.

All of the above types of land have owners, tenants and investors and any type of investment – requires comprehensive knowledge of the same industry
Here too, as in traditional real estate, there are strategies of purchase – improvement – development, maintenance or sale, flip or hall sale, however, as an entrepreneur who deals with land, I have a wider range of clients compared to traditional real estate entrepreneurs!

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Yossi Golan # Post 2

** Acquisition of land in the USA **

You decided you were tired of flipping!
And what is the reason? Murphy.

Murphy visited you a little more than you thought.

The wall that you decided to remove during the renovation, in order to open up the space in the center of the house, actually concentrated all the electricity and air conditioning infrastructure inside.

And so they evaporated a few thousand dollars more and a good reason for the subcontractors to explain why they are not on time.

And the excel is already starting to wave a red flag.

And so in every project new “surprises” like mushrooms come up after the rain and most of them how to say gently? Not really for the better.

You have decided “so far”! You are going on new construction projects.

And you started looking for land. Wonderful.

And you even found land. overpowering.

Have you checked COMPS as written in the books? Excellent.

Have you analyzed the prices of houses in the neighborhood? Stunning.

But now let’s start checking out what’s really about to be purchased – the land.

But what do you check?

At the flips we sent contractors for an estimate of the cost of renovation, we sent an inspector to check foundations, roof, windows, air conditioner, electricity, water, compliance with required codes, mold etc.

But in the case of land – there is nothing of everything we are used to checking… .. it’s land, it’s land.

What is being checked here anyway?

You start to realize that the test is a little different, actually…. Much different.

Need to sign a purchase contract. But this is land. Is it even necessary to include a review period in the contract? Due diligence?

The answer – of course yes!

What exactly is being examined in this period?

Great question.

** To facilitate the process, I have prepared a CHECK LIST of 24 issues that need to be examined and I have even added the terms in English in important places so that the other side will understand the issue accurately. **

The answers will help you answer the question – is it even possible to build on this land? And as far as construction is possible – is it economical and profitable to build on this land?

So let’s start…

**1. Is the land buildable? **

This is the first question, and even though it sounds silly – this is the most important question.

The land may not be buildable.

In such a case it is necessary to understand what the costs are for turning it into a construction bar and what is the length of time required for this.

** 2. Is the area developed? **

Undeveloped space will incur many expenses and a long period of time both in issuing permits and in preparing the land.

It is important to examine all the costs of preparing the land until it is ready for construction.

It is advisable to test using a proposal from several contractors to prepare the land for construction up to Pad Ready (and calculate on your own, once you have developed capabilities for this). ** Land development costs can turn a good deal into a hole in your pocket. **

** 3. Existence of infrastructure **

Are the required infrastructures in the area, including gas, sewage, water and electricity?

If the infrastructure is not available – the costs involved must be taken into account as well as the processes with the various supply companies, which means – time and budget.

** 4. Infrastructure constraints **

Check above and below the surface. Are you moving or are planning to move infrastructure that will impair your ability to build a house as you wish, if at all you are allowed to carry out construction.

** 5. Is there an infrastructure filler in the area? ** (It can cost up to $ 15,000)

** 6. Sewage infrastructure type – Sewer line or Septic **

A substantive question. We will return to it again at the end of the post.

If the infrastructure is Sewer – there is a set of issues to examine, for example: Is it necessary to install a pump to raise the sewer to road level if the ground is sloping?

If the Septic infrastructure – the most important question – does the soil allow liquids to be absorbed?

Sometimes the soil does not allow for the absorption of liquids and then construction will simply not be allowed on this soil.

The required test is called a Perc Test and costs about $ 500.

** 7. topography**

Even if the land is developed and all the infrastructure is in place – should preparatory work be done before foundations? Is special development and preparation work required?

Here is a case we experienced – about two years ago we considered buying land in Chattanooga, Tennessee to build a new house in a luxury neighborhood with an amazing view and schools with a score of 10. The price of land about $ 50,000 was definitely reasonable for the area and even 20% cheaper than the market value.