Dabney Berne. 803-420-1878 or email Dberne4@aol.com

You may be one of the millions of people considering the idea of investing in land, and now you want to make sure that you're making the right decision. Here are some of the reasons why you should make the jump into land investment.
(1) FIXED VALUE.
(2) TANGIBLE INVESTMENT:
(3) GREATER LONG TERM RETURNS.
(4) LOW RISK.
(5) LEVERAGE.
(6) HIGH RETURN ON INVESTMENT.
(7) EASY-TO-UNDERSTAND INVESTMENT.
(8) OWNERSHIP.
(9) PRACTICAL USE: You can use your piece of land in a number of practical ways. You can develop the land, harvest the resources, rent it, use it as a campground, subdivide it, build a home or business, there's endless possibilities. There is so much to gain and practically nothing to lose when investing in land. When all else fails, or when other modes of investment go shaky, land investment offers solid investment ground.

How will I fund a land investment?
Those beginning the process of purchasing land usually have a general idea of how they plan to pay for the investment. However, I have seen many buyers change their method of funding because they became educated on an option that was previously unknown to them and offered them some distinct advantage. Some may simply not understand the process or what they can afford. Following is a brief explanation of the most commonly used methods to fund land transactions.

Cash. Most land transactions that I work with are cash transactions. This is not to say that I work with only the independently wealthy. Most people that pay cash for a property have recently sold some other type of investment and are simply moving that investment into a property that works better for them. Many investors prefer this method as it is the most hassle-free and gives the buyer a negotiating advantage?The general thought is that a cash offer is stronger and that because the terms of the offer are stronger, the investor can offer a lower price.

1031 Exchange. 1031 exchange, Like-kind exchange, Starker exchange, Tax-deferred exchange all refer to a method of exchanging a property or properties for other similar properties without the realized capital gain being recognized as taxable by the IRS. This is only available to those who hold the property for a business purpose. In the past few years, this has become very popular with investors seeking to grow their investment portfolios without taking cash out. For example, if you sell a farm that you have operated in Texas, you can utilize a 1031 exchange to move that money into a timber property in Alabama. There are many special conditions that must be adhered to in order participate in a 1031 exchange. You should consult your attorney regarding a potential 1031 exchange prior to accepting an offer from someone to sell the property you will be selling in the exchange.

Home Equity...
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Owner Financing...
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For some people, money does grow on trees. Whipsawed by gyrating markets in recent years, some investors are taking root in a little-understood asset class that since 1987 has handily beaten stocks - TIMBERLAND. A dollar invested in the National Council of Real Estate Investment Fiduciaries' Timberland Index then was worth nearly $21 at the end of 2009, a compounded annual return of more than 14%. That same dollar invested in the Standard & Poor's 500-stock index was, with dividends included, worth $7.83, a return of about 9.4% a year. Returns aren't the only attraction. Timber historically has tracked the consumer-price index, thus serving as an effective inflation hedge. And aside from timber sales, timberland can generate income through hunting leases, watershed rights, energy-exploration easements and other uses.