FAQ’s

  1. In what states does Land Tycoons operate?
    In what states does Land Tycoons operate?Land Tycoons is not limited to any state to operate. As Real Estate Brokers & ‘Realtors’ the agents at Land Tycoons are licensed in Colorado, New Mexico, Oklahoma and Texas. They also network with Brokers licensed in other states to open the opportunities for their clients. Investing opportunities do not limit them to specific states. Land Tycoons includes other experts including licensed Auctioneers.

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  2. Why should I invest in land?
    Why should I invest in land? Land has historically always maintained a value. As the saying goes ‘ they’re not making any more of it’, it is still true. There is a limited supply of land. Land that is waterfront, or has water running thru it, or varying water features is becoming harder to find. Property associated with water has seen considerable appreciation over the last several years. There are several variations of land. Some describe a property consisting of timberline mountain peaks turning into evergreen forests with brooks, streams and ponds– Loaded with big game and wild trout. Others see vast seas of grass and visualize a cattle herd, with antelope and deer dispersed throughout the ranch. Still, others see that perfect tract of land located just off of a major interchange exit and imagine the perfect income producing business located there.

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  3. What are value added ‘rights’ that come with the land?
    What are value added ‘rights’ that come with the land? Rights that come with land vary usually by the size of the tract. Typically on farmland there will be water rights, possibly wind rights and sometimes mineral rights. Large acreages like ranches tend to have more rights just by the shear volume of land. In addition ranches may also be capable of supporting wildlife as well cattle. This can give the owner an additional income stream. Commercial tracts normally do not come with any of these rights. They have been platted, subdivided and zoned to the point that those rights have been removed. Depending what part of the U.S. you are looking at, these rights may be more valuable than the land itself.

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  4. Who owns the water, wind, mineral or timber rights?
    Who owns the water, wind, mineral or timber rights? In our market area, water rights, wind rights, mineral rights and timber rights can all be severed from the land. These rights may or may not be passed on to the next buyer. Or maybe a portion has been reserved by a previous owner and a specific balance will only be transferred to the new owner. Each property is different. With today’s economics what one owner thought was important and retained, may be totally different to what a new owner may want to acquire.

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  5. Lease Land vs. Deeded Land?
    Lease Land vs. Deeded Land? In our market area, land will come in various forms of entitlement. Deeded, State Lease, Bureau of Land Management (BLM), United States Forest Service and Private. Many large tracts of land may have one or more of these designations included within the tract. Deeded land is the highest and best of the designations for an owner, but combinations of deeded land along with any or all of the other lease designations can make a very attractive tract of property. They can enhance the profitability of the deeded land for a small annual lease fee. Many large ranches in the southwest are made up of less than a section of deeded land and several hundred sections of various lease land.

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  6. What Water Rights are associated with the Land?
    What Water Rights are associated with the Land? In the western U.S. water rights associated with the land are very specific. Most farm land will state a specific amount of water right associated with the land. Open land and range land for the most part does not have an allocated water right. The water right that most commonly is associated with ranch land is for the use of a domestic well to water livestock. We have all seen the windmill, solar panel or electric submersible pump that provides the water. All of these water rights are administered by the entity within the State to appropriate the water.

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  7. What types of Easements could be on the Land?
    What types of Easements could be on the Land? There are many types of easements that may be associated with deeded land. The most common that are visible to the eye include, roadway, utility, pipeline and right of way. There are many more that may or may not be apparent. A right to ingress and egress, wind, airspace, mining and mineral to name a few. In the right combination, these easements can increase the value of the land–in other combinations they can lower the value of the land. It will depend on what the perspective of the land owner is.

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  8. Are Legal Descriptions and Surveys different in the SW?
    Are Legal Descriptions and Surveys different in the SW? Many parcels of land have been subdivided and platted and the boundaries are very easy to see. Large tracts of land (farms & ranches) may be much more difficult to locate their property lines and corners. Smaller parcels typically have been surveyed and staked. Larger tracts have been historically described by a ‘metes & bounds’ system. There are typically fence lines, roadways or geologic structures that help in the location and description.

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  9. Is a “Realtor” and a Real Estate Agent the same?
    Is a “Realtor” and a Real Estate Agent the same? Not always. The “Realtor” is a member of the National Association of Realtors (NAR). You may have observed the advertisements for Realtors with the Capital ‘R’ inside a circle logo. Being a member requires additional education and ethical vows. All “Realtors” are Real Estate Agents. Not all Real Estate Agents belong to the National Association of Realtors, and therefor are not ‘Realtors.’

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  10. What is the difference between a customer and a client?
    What is the difference between a customer and a client? The difference is the level of commitment and duties required of the Broker and the buyer/seller. Duties and commitment of the Broker increase with a written agreement, i.e. a ‘Listing Agreement’ for a seller or a ‘Buyer Broker Agreement’ for a buyer, or other type of written agreement. A ‘customer’ is a buyer or seller that is working with a Broker without any written agreement. A Client…buyer or seller… has a written agreement with the Broker. The Broker has more commitment to the client due to the written agreement. This written agreement spells out the Duties of the Broker.

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    11. How Do I know if My Broker is working for Me or for the other person?
    There are very specific ‘Broker Duties’ that address this concern.  It is a Broker Responsibility Form.  This form details the responsibilities of the Broker regardless if the Broker is your agent or not.  This form can be found on the web site for the specific state you are purchasing property, and varies slightly from state to state.  All states require that the Broker be honest to you.  Contact us and we will be glad to share this form since we are proud to abide by the integrity it for which it stands.

Listing & Selling

  1. What is Traditional “Private Treaty” Property Listing?
    What is Traditional Property Listing? This is a method most commonly known as”A Listing” or “Private Treaty” and used by Real Estate Brokers in the United States. It requires the seller to sign a written “Listing Agreement” that includes a price the seller would like to get for the property as well as an expiration date, and possibly other terms and conditions. The Broker then markets the property to attract a buyer.

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  1. What if I want all the Brokers in my area to try to sell my property?
    What if I want all the Brokers in my area to try to sell my property? This actually creates a reverse problem. If you are not committed to them they will prioritize their time for the clients that have committed to use them as their Listing Broker. This type of “Open Listing” usually gives your the least exposure to Buyers. On the flip side, you will find that if you are committed to one Broker, they will be committed to you, the Seller. Most Brokers will cooperate with another Broker that brings a Buyer.

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  1. Can I sell my property myself?
    Can I sell my property myself? Of course you can sell your own property. What is your field of expertise? Would you be doing yourself a disservice in representing and marketing your property? Do you have the network and tools, the time and the experience? A reputable Broker has the experience, education and dedication in Real Estate sales and acquisitions. A Broker, that is also a Realtor, will be invaluable.

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Purchasing

  1. Does my offer need to be in writing?
    Does my offer need to be in writing? All offers (and any counter offers, addenda,conditions) must be in writing to be enforceable.

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  1. What amount of earnest money needs to be given with the initial offer?
    What amount of earnest money needs to be given with the initial offer? It depends. Any consideration is acceptable, but how will it look to the seller? If you write a check for $1.00 will the Seller think you are very committed? If you write a check for 1%-10% will you as a buyer appear to be serious? Yes. The largest check I have witnessed was for 50% of the offer. The offer was low and there were conditions that could cause a Seller to cavil. But this was so powerful to the seller that they accepted the offer immediately. The strategy on the Buyer side was edgy, but all their purchasing terms were accepted because of the size of their earnest money. This strategy may not always work the same, but it does give a powerful impression of serious!

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Financing

  1. Cash may be King, but what are other methods?
    Cash may be King, but what are other methods? Don’t want to use all your cash in one place? Yes, there are other ways to finance property. There are agriculture(ag) lenders, alternative lenders, even the seller may consider ‘owner financing’.

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Exchanges

  1. What is an Exchange?
    What is an Exchange? The simplest, and oldest method of acquiring something is by exchanging one thing for another. Trade one vehicle and cash for another vehicle is very common. In property it would be trading one parcel for another. Sometimes this involves trading several parcels for one or adding cash to the deal. On an investment level the IRS has an approved strategy called the 1031 Exchange program, for exchanging that yields significant tax advantages. This is a legal method of deferring income, depreciation or capital gains tax. It is also a popular method to increase leverage, cash flow or profit, build wealth, expand your portfolio, consolidate holdings or reduce indebtedness, upgrade the size or quality of your investments, achieve immediate or future income, eliminate management or gain greater yields……the list goes on. Call the experts at Land Tycoons for assistance on your exchange potential plans (with or without the 1031).

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  1. What is a Reverse 1031 Exchange?
    What is a Reverse 1031 Exchange? When talking about the IRS 1031, this is a method of acquiring new property before selling the currently owned property and yet still utilize the IRS approved 1031 Exchange strategies. There are two types of reverse 1031 a ‘Safe Harbor’ and a ‘Traditional’ reverse 1031. In addition there is an ‘Exchange First’ and an ‘Exchange Last’ option. Certain time limits and restrictions still apply. Give the experts at Land Tycoons a call to assist you.

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  1. Can I combine several of my properties and Exchange for one larger property?
    Can I combine several of my properties and Exchange for one larger property? Yes you can either combine several to purchase one or use one to purchase several.

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  1. What if I want to Exchange my property but I don’t like what the other person is offering?
    What if I want to Exchange my property but I don’t like what the other person is offering? There are several ways to get to your goal. Option 1 is to bring in other sellers and do a ‘multi-leg’ transaction. You are person ‘A’ and person ‘B’ wants your property but you do not want their property. You want what another person is offering. We would bring other sellers into the mix to bring the deal into a full circle. Option 2 would be to do the exchange and turn around to offer that property up for exchange until you get the one you wish to own. Option 3 is to increase or decrease your perimeters on the properties you wish to obtain. Option 4 is to add or subtract property to increase or decrease the properties you are attracting. There are other options also since exchanges can get very creative! The experts at Land Tycoons have solved small and large, multi-leg transactions!

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  1. How do Brokers know about Exchange opportunities?
    How do Brokers know about Exchange opportunities? The Brokers at Land Tycoons belong to several closed organizations that network the many opportunities around the nation, in fact, even in other countries.

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Auctions

  1. Are Auctions are a good way to sell property?
    Are Auctions are a good way to sell property? Auctions are fun and exciting! Auctioning property is a great way to not only sell in a determined time, but also to get the highest dollar at that moment in time, according to the active competition. When a property is on the market for months, the value in the mind of a purchaser diminishes. A purchaser starts to think that something may be wrong with the property or that is no one wants it then maybe they should not buy it either. Yet an auction creates a sense of urgency and competition. When the Auctioneer calls the property “SOLD!” the seller knows the date of the closing.

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  1. How long have Auctions been around?
    How long have Auctions been around? Auctions have been around for thousands of years.

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  1. What can be Auctioned?
    What can be Auctioned? Almost anything that is legal to sell, is legal to Auction.

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  1. Can several properties be Auctioned at once?
    Can several properties be Auctioned at once? Yes, and sometimes that is referred to as a multi-par or multi-parcel Auction.

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  1. How do I decide if I should go the Auction route or the Traditional Listing route?
    How do I decide if I should go the Auction route or the Traditional Listing route? Upon request, a Broker with Land Tycoons can go over the benefits of each route. There are several key details that will guide you to the right decision for your specific goals.

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