Southern Colorado Real Estate F.A.Q.

 

I am not familiar with BLM, what is it?
The Bureau of Land Management is another arm of our federal government under the jurisdiction of the Dept of Interior. The BLM manages millions of acres of public lands. This land is available for recreation, similar to what you can do in National Forest. There are some lands considered "areas of critical concern" and they may not be open to motorized vehicles, but usually foot and horseback is fine. Often the BLM will lease land to farmers or ranchers.

 

What is the difference between State Lands and BLM?
First, there are two types of State Lands, State Wildlife Areas, ( State Forest  ) and State Trust Lands. State Trust Lands are usually only one section in size (640 acres), and are scattered throughout the state. Perhaps you've noticed those blue squares on your Colorado map! These lands are managed by the State Land Trust Board for the benefit of public schools here in Colorado. This property can be leased, like in the case of grazing purposes, and are not always open to public use. They may allow recreation like hunting or horseback riding on a seasonal schedule. If you can find land bordering or near it, it really is a nice buffer against development. The state will occasionally lease land in State Wildlife areas too. Locally the Echo Canyon Guest Ranch in La Veta leases 60,000 acres of the Spanish Peaks State Wildlife Area for their operation. That doesn’t mean the public can’t use the land, but the nearest public access to the forest is a long way from Echo Canyon.

 

It seems everything available has covenants and restrictions. I'm tired of people telling me what color to paint my house!
This isn't a question, but since I hear this very often it is a valid concern. At some point in its history the land probably belonged to a rancher that just plain couldn't make a living ranching any more. Rather than deal with the headaches of selling to multiple buyers, he sells to the highest bidder and they, in turn develop it. If the developer wants to stay in business, they will have to set up some very minimal covenants to try and help protect people’s investments, ( most associations don’t care what color your house is ). For some folks this purchase could have been done with their entire life's savings and it very well may have been their life long dream to own land in the Rocky Mountains...can you imagine waking up to a view of a bunch of junk cars lined up in a row to form a fence, or the smell of pigs basking in the sun? I’ve seen it!! At some point down the road everybody has to sell and these types of things can turn your dream into a nightmare.

 

Do you share the data from my 'information request form'?
This information is used solely for the purpose of searching my data base, in order to find the property that best fits your needs! Your personal information is never sold, traded, or shared with anyone period!

 

How does financing of raw land work?
There are several ways to do this, and if you have ever bought a home it is a similar process. If however, you are new to the world of lenders and financing, please let me know so I can further explain the terminology to you. a.) The simplest of course, is cash. Some folks look at pulling funds out of bad performing investments, or have other assets they can liquefy like rental properties, etc. b.) Look into the equity on your home. This may even qualify for tax advantages...check with your accounting professional for more details.

c.) Another option is to go with the owner or developer's financing. Developers will require 20% down, and Private Individuals tend to want a higher down like 30% or more to offset any risks. Rates vary around 8.5% interest and a term of 10, 12 or 15 years is pretty standard. A Developer may offer an amortized note over 20 years with a 7 year balloon, or maybe an interest only note for 2 years. The costs to close these developer and owner financed transactions are minimal, around $200, with no loan origination costs involved. A credit application will be required and approval is subject to their analysis and comfort level. Actually, this type of financing can be an advantage if you are planning on building in the near future...as you can use the equity in the land towards your construction loan without the out of pocket fees associated with most lenders.