Vacation Rental Businesses for Beginners: Tips and Resources to Get Started

While rental properties can be excellent investments, it’s important to have a good plan in place before launching a vacation rental business. After all, you won’t just be investing in rental property: You’ll also be hosting short-term guests, maintaining the property, and continually advertising your rental listing. Let these resources be your guide. 

Beachfront Vacation Rental Property Business

Consider Your Location, Taxes, and Fees

To make the most money as a vacation rental business owner, you’ll need to choose the right locations for your properties and consider the hidden costs of owning vacation rentals. 

Purchase Your Vacation Rental Property

From financing your vacation rental to hiring a real estate agent, these resources will help you to get your vacation rental business off the ground. 

Advertise Your Vacation Rental Business

Once you’re ready to welcome guests to your vacation rental, you’ll need to create a property listing that stands out. 

  • First, look for ways to make your property stand out on- and offline: Purchase completely customizable wallpaper for your walls; invest in upgrades like pools and hot tubs; and consider offering bikes, kayaks, and other popular beach toys for your guests. 
  • Build a website for your vacation rental business and create a rental listing that attracts the best guests. 
  • Make custom logos in an instant for your vacation rental business by using editable logo templates.
  • List your property on websites like Airbnb, VRBO, and Booking.com.

There are lots of advantages of purchasing a vacation rental, from the passive income and tax write-offs to having your own vacation home to visit whenever you’re in need of a getaway. But buying a vacation rental property does have its downsides, and it’s important to do your homework to ensure long-lasting success as a vacation rental business owner. 

Are You “Gentri-intuitive?” How Successful Investors Spot Emerging Markets Before Everyone Else

Real estate success stories are on the rise again and sellers have started hauling in big profits – in many cases at least twice as much as initial purchase values.  The “average” home buyer is cashing out, yet it’s the savvy investor who has the biggest advantage.  

As a real estate and development attorney in Massachusetts, I regularly see real estate fortunes made first-hand, especially now.

Your next big windfall is within reach if you can master one of the most important skills in real estate:  awareness.

Here are the top 5 indicators our clients look for in an emerging neighborhood:

1. Behavior

When a community feels safer, there’s a good chance more people are likely to get involved in the local scene, which means an increase in residential activity. Look for signs that neighbors are beginning to interact with the community.

You’ll see:

  • increased foot and bike traffic
  • more pedestrians with baby carriages
  • farmer’s markets
  • weekend cookouts (open your car window and smell the burgers)
  • community theater (pay attention to anything “artsy” or “organic”)

You may be late in the game when:  bike paths have been constructed in natural areas, the neighborhood is in the path of a marathon, or weekly exercise or kids classes are hosted in the neighborhood park.

Landscape

Look for conflicting landscape characteristics that suggest an emerging neighborhood. New and shiny landmarks will begin to crop up in the middle of a depressed area, which could spell a potential gold mine. Other characteristics may include:

  • a tidy section of town within close proximity to littered streets
  • a green park located next to a vacant structure (i.e. warehouse)
  • freshly painted storefronts adjacent to run-down buildings (with shattered window panes or security bars)
  • new construction surrounded by dilapidation or graffiti
  • traffic improvements
  • parking lot construction
  • art installations on the side of buildings to beautify dilapidated buildings using local areas
  • dog parks

You may be late in the game when: full blocks are newly developed, new parking meters or recycle bins installed on streets, Starbucks or Panera open new doors, or when all the stores look inviting.

Traffic Flow

Observe the type of foot and vehicular traffic even more than the volume itself.  Also pay attention to different times in the day (that were relatively quiet a year before).

You might see:

  • young professionals walking past empty lots during their morning commute
  • a new transit station project in the center of a dilapidated neighborhood
  • young families in close proximity to a diverse group

You may be late in the game when: accommodations for commuters are abundant and already in place.

4. Investment

Real Estate Investors Spot Emerging Neighborhoods

Watch for signs that the community is planning for growth and investing in itself.  It’s all right in front of you:

  • new sidewalk or park construction
  • construction equipment
  • real estate developer signs
  • Main Street revitalization projects
  • Memorial parks
  • incubator offices open for entrepreneurs
  • a new medical center (the real estate industry often sees this as an indication of a community addressing a growing region’s needs)
  • City Hall is being renovated

You may be late in the game when:  a local chamber of commerce hosts a ribbon-cutting ceremony for a new park or an older office building was just refaced to a glass facade.

5. Sentiment

Although real investment development shouldn’t yet be in full bloom, you’ll notice the seeds of change taking root at a soon-to-be prime location. Indicators include:

  • Open storefront doors and windows
  • Excitement about an area
  • when the average “time on the market” becomes extremely short.

You may late in the game when: national restaurant chains and supermarket chains have already opened their doors.

Sensing an uptick in the real estate market takes research, skill and intuition, and there’s always room for error.  Even with awareness, hard work, perseverance, and a little luck are involved too.  Use every asset at your disposal, and surround yourself with a knowledgeable and experienced team, to maximize your chances for success.

Robert Pellegrini is a real estate and development attorney in Massachusetts and advises clients on permitting, zoning, and buyer/seller agreements.

Buying Your First Investment Property

Given today’s low housing prices and interest rates, it is easy to understand why so many people are considering purchasing an investment property for the first time in their lives. While you will have to take a few extra steps when purchasing an investment property versus an owner occupied property, buying investment property can certainly be quite rewarding. Before you take this step, however, it is important to learn a bit more about what purchasing an investment property entails.

Financing Your Purchase

Financing the purchase of an investment property can be a bit trickier than purchasing a home to occupy. When purchasing an investment property, you should be prepared to make a down payment that is equivalent to 20 percent of the cost of the home. Furthermore, the funds you use for your down payment cannot be a gift. In some cases, the seller can contribute up to 2 percent toward the closing costs an you may be able to have a second mortgage of up to 85 percent of the cost, but taking advantage of these offers will make it more difficult to obtain a loan. The same is true when it comes to your credit score, as those with low scores will be hit with higher interest rates.

Having Funds in Reserve

In addition to having enough money to put down as a down payment, most guidelines also require you to have six months reserves in your savings account by the time the transaction is complete. The six months reserve includes the amount needed to cover your mortgage payment for six months as well as any home owners association dues. Retirement funds and stocks can count as your retirement reserve, but lenders will discount the value of these to 60 or 70 percent when determining their reserve value.

Using Special Programs

For those who need a little help with purchasing an investment property, there are two options available: Fannie Mae Homepath and FHA. With a Fannie Mae Homepath Mortgage, you can put as little as 10 percent down on a property that has been designated for the program. No appraisal is required and you do not have to purchase mortgage insurance when purchasing a property through this program. You do, however, need to have a credit score of at least 660 to qualify.

You can also purchase an investment property with the help of an FHA loan, though you will need to occupy part of the property. This is a good option for those who are interested in purchasing a 2-4 unit property in order to live in one of the units and to rent the others. When going this route, you still receive owner occupied interest rates and you only have to pay a very small down payment. Furthermore, the rent that you expect to receive from the property can be put toward helping you qualify for the loan. As with any FHA loan, you will have to pay upfront mortgage insurance as well as monthly mortgage insurance, though the upfront insurance can be financed as part of your loan.

Foreclosure Properties: Knowing if it’s the Right Investment for You

If you’re in the market for a new home and you’re checking through local listings there is one resource that you might not have considered up till this point: Foreclosed properties.  Granted, all real estate markets across the country are different, even within individual markets the dynamics can change neighborhood by neighborhood, and some markets within the US don’t have foreclosed properties.

Foreclosure homes in the “pre-foreclosure” process are great for bargain shoppers. With so many homes currently on the market it’s simple economics that when supply exceeds demand, the consumer benefits from the subsequently decreased prices. This means that homeowners can save big and their buying dollars can go a long way with the purchase of a foreclosure property.

There is no shortage of houses currently for sale and this trend is likely to continue with millions of homes in one stage or another of the foreclosure process. MSN reported on how much savings a buyer could get by investing in foreclosure properties. Though the days of flipping property quickly seem to be over, this has still proved a great way for people living out of an apartment or using a local StorageMart to keep all of their belongings while waiting for the market to improve. You don’t necessarily have to wait and there are two main ways of attaining one of these troubled properties.

If you feel that this might be the right move for you then the first step you need to take in buying a foreclosed home is to ensure that you have the credit and resources on hand to buy and keep the home. It may be a great deal but if you don’t know if you can afford it in the long-term then you might have to foreclose yourself. Check your credit score, monthly budget, and how much buying power you have with a lender or bank and then start looking at properties.

Then check out how to begin the process of buying a foreclosed home. You can go to local state auctions to bid for a home. You can check listings in the newspaper but there’s a risk here that you’ll be buying a home without having the ability to first inspect the property. Also, if you do this, you’ll have to be up front with cash on had to buy the house. This is one avenue you can take that can save you a lot of money but could end up costing you a lot in repairs. You might also find yourself in the undesirable situation of having to evict the current homeowner. These are negatives but this still offers the greatest savings on property investment.

Another option available to prospective buyers is real estate owned. This is when a property has already been repossessed and is now being resold. It’s a preferable situation to many people, because a buyer has the ability to have the home inspected before any bids are placed. There is a downside to this because the bank is trying to get as much back on their investment as possible and you’ll have to fight with them over the price. They’re trying to make back as much as they can on their foreclosure losses which means the discount in savings to you might not be as great as if you were to buy a property at auction.

When all is said and done buying a foreclosed property will save you money. Though there are more upfront costs, the long-term cost savings will be passed on. First you need to be sure that you can afford all of the initial costs. Since there’s such a huge stock of available homes, lenders and the market is more willing to sell properties because they’re motivated to get people into them. Buyers have a lot of leverage right now and regardless if a property is in foreclosure or not, you’re going to save a lot of money. Only the buyer can decide if this is the right move for them.

Using Real Estate to Build Wealth

The 20th century was one of great growth in America. Many people came to our great country for the ‘American Dream’. We have liberties like no other country in the world or in history. Many people came to seek out this dream and used homeownership as a sign of their new found independence. Homeownership and having property rights is a wonderful privilege that we as Americans should appreciate.

Over the course of this country’s history many individuals have made a tremendous amount of money through owning land. People have taken different approaches in ownership; raw land, multi-family, spec building, and simply just living in the home with their family.

Regardless of the reason for purchasing, if your parents owned property anywhere in the US fifty years ago the value has likely gone up dramatically. Here are a few reasons why owning real estate is a great strategy to build wealth:

  1. Demand – According to the US Census Bureau, the total US population is expected to reach 392 million people.  This will be an increase of 50% compared with 1990. Think of areas that may attract more people in the future based upon jobs, cost of living, and climate. Remember, 100 years ago there was nobody living in areas like Las Vegas, Los Angeles, and South Florida.
  2. Other People’s Money (OPM) – This is a term that was brought out in recent decades but is a long lived concept. Using other people’s money will help you leverage to own more property or any at all. Buy a home with 20% down, break even most of the way, and in 30 years the property is paid off leaving you with nothing but pure income and equity.
  3. Rates – Rates are at historic lows. Now people have been saying this for years but they really are. Clearly, these low rates will not last forever. Every $100,000 you borrow will cost you only about $500/month on a 30 year fixed with no points.
  4. Inflation hedge – Did you know that a nickel 100 years ago is equivalent to a dollar to day. Over periods of time we have had steady inflation. Real estate is an excellent hedge against inflation. In fact, those that own a lot of real estate actually make a ton of money during inflationary times. Sure, the cost of gas and butter go up but those that have significant real estate holdings build wealth by inflating property values.

Clearly there have been cycles in the past. Property values have plummeted in the past and will certainly go through another cycle of highs and lows. However, owning real estate is a great long-term strategy to build wealth.   If you have good credit and enough for a down payment you ought to consider adding real estate to your investment portfolio. If you have cash, or can get access to cash, and are seeking returns, real estate can offer some very high yields vis-a-vis renting.

Special Offer from Local Boston Author Matthew Martinez

Perhaps you have noticed over the past several weeks that we’ve partnered with local Boston bestselling author and real estate investor Matthew Martinez to advertise his collection of real estate books, including his latest, How to Make Money in Real Estate in the New Economy.

Martinez contacted us to share a sweetener for the purchase of his bestselling titles, as described below.  This special offer is valid through Sunday, February 13, 2011:

I will give you $350 worth of additional products and services if you order any one of my three books through Amazon this week.  Those bonuses include:

#1 – A detailed worksheet to figure income and expense for qualifying for a mortgage when buying investment property.
Created by Dale Robyn Siegel, author of The New Rules for Mortgages.

#2 –  Free underwriting of your investment property. A well-known investor and multifamily broker based in Southern California will offer a FREE apartment building evaluation.  You will be put in contact with him to receive a complete written analysis on the value of any apartment building. This offer is limited to the first 100 people.
By Frank Ponce of Scott Anastasi Realty

#3 – There’s No Free Lunch in Real Estate. The report is a proven program to help you start on the path to building life-changing wealth through real estate. If you had $60,000 to invest, what asset class would provide you with the best return over a 30 year period? The obvious (or soon to be obvious) answer is real estate. The reason is all of the benefits a person gets from owning real estate, including depreciation, appreciation, passive income, and leverage. This Free Report explains this in dollars and cents and gives an easy visual demonstration of why this is so.
Created by Jon Swire, Author of There’s No Free Lunch In Real Estate

#4 – A discount on the Offer Generator. This program calculates wholesale offers on investment properties. “I think it is the best tool a true investor can own. It creates offers that will cash flow right from the start. I’ve been buying for almost 40 years and still own every property I’ve bought. Over time, the cash flow becomes phenomenal.”
Created by Mike Summey, author of The Weekend Millionaire’s Secrets to Investing In Real Estate.

#5 – 10 Ways to Buy Low. This report details 10 different ways for investors to buy properties below market.
Created by Andy Heller, bestselling author of Buy Low, Rent Smart, Sell High! and co-founder of the free real estate networking site www.realtyjoin.com

#6 – 27 Ways To Buy With No Money Down. This report provides no-money-down techniques if you are just starting out; or if you have all your money tied up in other investments; or you want to control as many properties as you can with little or no money. As you are exposed to different investment opportunities,  determine which one of these techniques gives you the option of getting into the deal with no money down.
Created by Dave Lindahl, founder of RE Mentor and author of Multi-Family Millions: How Anyone Can Reposition Apartments for Big Profits

To take advantage of these bonuses, follow two simple steps:

1. Buy any one of my books through Amazon by clicking on their respective links below:
How to Make Money in Real Estate in the New Economy

2 Years to a Million in Real Estate

Investing in Apartment Buildings: Create a Reliable Stream of Income and Build Long-Term Wealth

2. Send a copy of your order receipt to the following email address: nfo@beaconhillpg.com

I hope you recognize an outstanding return on investment when you see it! Best, Matt.

Vacation Rentals for the Savvy Investor

Investors sometimes forget about other options for rental properties.  Most people buy an investment property to rent out yearly. If an investor chooses a home or condominium wisely and manages it as a vacation rental, the return on their investment can far outweigh a typical yearly rental property.  Here are some things to consider when pursuing a vacation rental.

Location – You must first decide on the location and if the city ordinances and condominium or housing associations allow vacation rentals.  One of the most important decisions you will make is the location.  The location should optimally be a resort or vacation destination where you rent the property out year round.  Winter does not always mean you wouldn’t be able to rent it out.  There are several ski resort destinations in the winter that are also golf destinations in the summer.  You want your property to be busy all year, not just in a specific season. Although sometimes you might be able to make enough money during the season that you would be able to slide through the off-season.  I would highly advise you to visit the location you decide in the winter and summer before making a purchase. Since the owner usually wants to reserve the home for their own use a few times a year, it’s important that the homeowner enjoy the area as well. If you’re concerned that you want a high return on your investment, you should look at vacation rental web sites and look at other owner’s property calendars and rates.  Find out if they’re busy or not. You should do all the research up front before you decide if the location is right for a vacation rental and you.

Amenities – After you decide on the location, what should you look for in a vacation rental property? Think of what you would like if you rented out a property with your family on one of your own vacations.  In the warmer regions, a swimming pool is a must and in the winter months a hot tub would be best especially for the smaller homes or condos where the property only sleeps 2-4 people.  If you were vacationing and wanted to go snow skiing, think how nice it would be to come back to your rental and jump into a bubbling hot tub. Likewise, if you were vacationing in a warmer climate you would like a pool to cool off during the warmest months. It would be best if you had both! If you don’t have a swimming pool or hot tub, it doesn’t mean that the property won’t rent out, it just means it might not rent out as much, or at a comparable rent to other nearby properties, since these types of well equipped rental properties go first.  For larger rentals that sleep 6 people and more, not only pools and hot tubs but game rooms with pool tables and video games are very nice. Sometimes during the winter the weather is not desirable to even go out in and if the property has some of these amenities, the guest wouldn’t mind spending the day at the rental.  Upgrade the TVs to flat panels and put TVs in the bedrooms too or at least the master bedroom.  Make sure the beds are large, king size beds are the best. Don’t think of this as a regular rental where you put the minimal amount into it.  The guests are paying as much per night as a hotel or resort most of the time, so you have to make sure they want to come back and the amount they are paying reflects what they’re getting.

Advertising – There are several websites out there advertising vacation rentals, but as always, you get what you pay for.  When anybody looks up anything on one of the search engines, the larger more popular websites come up on page 1.  Those are the ones you want to advertise on or get your management company to advertise on.  Type your city name followed by “Vacation Rental” into Google and see what websites come up on page 1 or 2. Your local management company nor your personal website will more than likely not come up on page 1 or 2.  This is very important that you research where your management company (if you decide to use one) advertises since most will not spend much money to advertise. Someone in Europe will never see that your property is even up for rent if you don’t advertise on the major sites. They will never see your local management company that has their own local website with your property on there. It’s great to create your own website for the property to include your availability calendar, rates, additional pictures and more information, but it should only be as a link from the major vacation rental websites.  I would suggest a website that covers the United States and Canada and one or two additional websites that cover European and Latin American countries including the UK, France, Germany, Spain, etc….Before you signup on any website, logon to their site and see what vacation rentals are being advertised in your city or state. If there are just a few, then the website is probably not worth advertising on.  The most expensive ones are the ones that are worth it and you’re probably going to be spending anywhere from $600-$1,000 per year on the advertising costs depending on the number of countries you advertise in. You should cover at least some European countries and the United States and Canada.

Contracts and Charges – Contracts are very important.  Each of the major websites have contract examples for you to review.  Start with one of them and add your own information according to your location.  If you have an attorney, it would be a good idea for them to review it.  You can put almost anything in a contract including that they have to vacate the property if they disturb the neighbors within a number of hours, no parties (if that is your wish), pet policy, smoking policy, weather issues, cancelation policy, security deposit returns, vacation insurance suggestions.  The contract has to cover more than just the amount of money and dates.  Most vacation rental contracts are from 3-5 pages long.  Security deposits are a must and the same amount should be charged for anybody whether they stay for 2 nights or a month.  Don’t make it too expensive that would scare people away.  Look at the other rentals in the area and see what the norm is in your area for the size of the home and its level of furnishings. Security deposits can be used for not only damages to the property, but policy violations including not picking up after their dog, smoking in the home, etc.

Management –  You can manage the vacation rental yourself if you’re one that answers emails and voicemail quickly.  Remember when someone searches for a vacation rental, they’re excited about going to the location and are sending out numerous requests for quotes for their stay at a number of properties.  If you or your management company decide to answer their email days later, most likely they have already chosen another property.  It’s very important that you answer email from the renter the same day, and it’s best within hours, with a quote of total costs including all security deposits and cleaning fees. No hidden fees. As part of vacation rental management, the owner or management company must make sure that the property is extremely clean and sanitized inside and out.  Pay attention to detail, cleaning windows, baseboards and ceiling fans at least on a rotational basis.  If there are hot tubs and/or pools, these must be clean as well with the water being changed in the hot tub often, most of the time after each guest.  If you’re going to manage it yourself, check up on your cleaning person and also pay them more since you must insist on very detailed cleanings.  The cleaning person must also restock all the paper products, soaps,.. etc.. and a number of loads of laundry so they’re doing more than a regular cleaning person does that might be cleaning your home weekly.  Pay them well and they will want to do the extra detailed cleaning. Most all vacation rentals charge a cleaning fee on top of the rental fees so give that to them, don’t try and make money on the cleaning fees.  Calendars should also be managed and kept up-to-date online so guests can see them.  This probably means management of more than one calendar.  Remember if you’re advertising on a few of the major vacation rental websites, they have calendars on their sites and if you build your own website, then link to one of theirs so you minimize the number of calendars you keep up to date.

Vacation rentals can be very profitable and a great alternative for real estate investors. This opens up a whole new market for realtors once they understand the level of investor they have and if they could buy and operate a successful vacation rental.

About the Author: Eric Miller is a broker associate /owner with Keller Williams Realty in Fort Lauderdale with over 10 years of experience. Eric Miller and Associates is an award winning team of Ft. Lauderdale realtors and can be found online at FortLauderdaleGroup.com, where you can view every Fort Lauderdale condominium listed for sale.

How to Buy Landlords Buildings Insurance

Do you have rental properties? Would you like to make sure that you can continue to maintain them and protect your investment well into the future? Would you like to insulate your investment as much as possible from natural catastrophes and more? If so, you need to consider landlords building insurance. If you have heard of it, but have been hesitant to buy because you didn’t know how to go about buying, don’t worry, you’re in the same position as a lot of people.

The best thing you can do to start is ask professional acquaintances who they have their landlords building insurance through. This is a great way to get recommendations about how much you should pay, which insurers will offer you the best rates, where you can get the best coverage for the best rate, and you may even be able to learn a little bit more about the type of coverage you should be looking at in your market to respond to any local nuances in property ownership.

When you talk to others you can not only get some great information about landlords buildings insurance and which companies to use, but you can also gain insider information about which companies or policies you may want to stay away from – sometimes the best information and the most help can come from the negative or less than ideal experiences of others. When you ask others about landlords buildings insurance, be sure that you ask for those companies or policies that you should stay away from, as this can be just as helpful as what firms and policies to pursue.

Another great way to shop for landlords buildings insurance is through your current insurance provider. If you have home owners insurance or anything like this, you should contact the company or agent that you go through. They can often provide you with this type of coverage as well, and because you have other policies with that carrier, you may often be able to receive better rates via multi-policy discounts. This is definitely worth looking into, and if by chance they cannot provide you with the insurance that you need as a landlord, they may be able to give you some great recommendations.

The Internet is a great tool when you want to shop for any type of insurance, too. Yes, even landlords buildings insurance. Online you can make the process straight forward by submitting your needs and requirements into a form, followed oftentimes by receiving several quotes at a time from different providers. The Internet has made shopping for landlords insurance, much like many things, more convenient and efficient. In some cases, you will also receive an online discount, which is always a good thing!

Gulf Real Estate Market Surviving in Wake of Oil Spill

The oil spill in the Gulf of Mexico is one of the largest disasters the United States has ever had to face. Wildlife, fishermen, and the boating industry have all been drastically affected by this devastating event, but how has the real estate market in the Gulf region weathered this occurrence?

Surprisingly well, according to a survey conducted by Beaches of South Walton. Though a small percentage of travelers to Florida and other Gulf of Mexico hotspots have changed their vacation plans after the spill, this study found that a mere 1 in 20 tourists are seeking alternate accommodations.

For property owners, this is a sigh of relief-for now. Though the spill is not a deal breaker for most, it is still a slippery slope for property owners. Marketing Gulf properties for either purchase or rental when an estimated 12,000-19,000 barrels are still pouring into the Gulf each day may become more difficult as the oil continues to spread. The real question for property owners on the Gulf is not only how to attract customers, but how to keep them returning, season after season.

Real estate author Christine Karpinski, has a few tips on how to maintain an honest and profitable relationship with your seasonal renters:

1. Talk up your properties, and keep information current. Updating listing photographs as often as possible and discuss beach conditions honestly. Emphasize attractions in the area and offer incentives for positive customer reviews once their trip has been completed.

2. Offer incentives such as free meals or gas cards.

3. Make cancellation and refund policies less rigid – if you have faith in your properties then the client will as well!

4. Though it may seem like the right thing to do, do not slash prices and devalue your property. Many realtors are offering a “clean beach guarantee”, make yours with terms that are both fair to you and your seasonal renters.

5. Loosen up and be prepared to accept last minute bookings, to make up for cancellations.

An overall change in approach is what will enable property owners in the Gulf region to thrive in the wake of this disaster. Climate change, natural and man-made disasters can all have a devastating effect on coastal properties. As property circumstances change, the marketing approaches of real estate owners need to evolve as well.

Read this Before Purchasing Land Online

Buying land provides investors with a lot of opportunities, and as land purchases become more prevalent across the USA, there are some key considerations to keep in mind.

Besides personal gain, land may be used for certain recreational purposes or as a summer/winter retreat. The land may be developed into horse stables, hunting grounds, fishing ponds, or mountain hiking zones. You may even build guest houses or lodges to help tourists.

Land Auction Online

In all likelihood, you will probably buy property from an agent in a rural part of town if you are not doing it online. Agents offer property that is bound to satisfy your preferences, though it depends on the amount you are ready to shell out. You will then be able to figure out what kind of land best suits your needs. The agent will look for the specific type of land that you have singled out, and you may need to accompany him/her to get a larger picture of the land that you think would be perfect for your plans.

Buying a piece of land is not as easy as it sounds. There are a lot of legalities involved and a slight mistake in the documents could mean a huge loss in investment. It is advisable to perform thorough research on the land and to have good knowledge on the different fundamentals involved in real estate trading.

The internet is a handy tool to buy land online and you may be lucky enough to purchase land from different states or countries at a very cheap price. These are properties that you would have never known about, let alone been able to buy in the ‘old days’. You will then be able to sell it for the market rate or above it, depending on the demand, and have the potential to go on to make a profit out of it.

Purchasing land online is as simple as a click of the mouse. You can get all the details and images of the land that you are interested in right at your desk with the help of the internet – without actually visiting the land. You can even get a list of FAQs answering all your doubts about the land answered by the owner.

However, there are certain limiting factors and considerations when you buy land online. You will not be able to see the whole land with your own eyes as you have to rely on what the camera lens shows you. You may try asking the owner for some aerial pictures of the land and also some questions on the geographical conditions of the place, supply of water, irrigation, and agriculture facilities and also check if there are any restrictions on the use of the land that you are interested in (from perhaps, the presence of wetlands or property easements).

Knowing about the climate in the area is also important. You may also want to know the wildlife present in the area, the kind of soil, and the greenery surrounding the land. Make sure that the land is not barren, this is important.

Make sure that the area does not lack modern amenities and is not technologically backward, and if so, be prepared to factor their correction into your comparative purchase price. If you have plans on using the land for recreational facilities, see to it that the area is accessible all year round. Also, get yourself and the land properly licensed so that you do not get into any legal troubles in the future.

When buying land from the internet, ensure the seller you are buying from has good feedback, and attempt to use “offline” resources to also verify and confirm purchase details and transaction legitimacy.