LandInvestors.com Forums $10K a Month for Life; Cash Flow From Land Chapter 8 – Cash Flow From Land Installment Land Contracts in Colorado and Water Wells

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    Charlie Barks
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    Post count: 23

    I mentioned on our weekly call on Oct 22nd, 2015 about some restrictions on Installment Land Contracts in Colorado. I am certainly not an expert on Installment Land Contracts but was trying to learn. I am a licensed Broker in Colorado but we don’t deal in the Land Contracts (trying to retire to being a Land Academy expert)

    So check this out about Installment Land Contracts in Colorado.

    Colorado Water Well Restrictions

    Also in Colorado the State passed a law in 1972 that requires you to have at least 35 acres in order to get a Domestic Water Well Permit. And after this date any properties less than 35 acres they can’t drill a water well unless it was subdivided before 1972. And if that is the case that water well is a restricted well called a “House Hold Use Only” water well. These wells are restricted to use inside the house only….you can’t wash your car with it, or water your livestock with it. If you do and get reported they can shut down your water well. Any properties subdivided less than 35 acres after 1972 either have to have a community water system or other source of water otherwise they will have to put in a cistern and haul water.

    So just sharing…

    Charlie and Barb

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  • Kevin Rhatigan
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    Post count: 107
    Pro

    @charliebarks

    Hi Charlie,

    I am in Colorado as well, no pun intended!
    My email is kevin@landsellbuy.com
    Maybe we can get together and share info, send me an email
    And thanks for the heads up on well water in CO. I was not aware of that!

    Eric Held
    Participant
    Post count: 32
    Pro

    I saw that article also. If you check the code he refers to there’s an exception for property’s 1ac and greater and the seller pays the taxes (which doesn’t mean you can’t then bill the buyer for the amount you paid) but you do have to notify the treasurer of the sale in addition to the assessor with the td1000 firm mentioned.

    Charlie Barks
    Participant
    Post count: 23

    @kevinrhatigan sorry for the late reply. I emailed you just now. I didn’t click the link to get notified of replies…and had my hands full with some other projects and businesses that we run….my bad. Love to get together with you. We still have Colorado connections and our real estate business there but we now live in Las Cruces NM…enjoying the winters here…:))

    @eric thanks for sharing that. Again sorry for the delay…. I need to look into that further. We have done a lot of Owner Financing deals in our land sales (typical real estate broker deals) but the deal is that it can be time consuming and costly ($2k-$3k) to hire an attorney to get the land back. I worked with a really smart developer that when someone got behind he would offer then $500 or $1000 to sign a quit claim deed and since they were obviously hurting for money most would agree. That was faster and less expensive then court.

    So bottom line is that I think if you can do an Installment Land Contract you are ahead of the game with much more control. In New Mexico they tried to do away with Installment Land Contracts a number of years back but everyone especially the RE Brokers made such and uproar that they kept it in place. So quite a number of properties including homes are sold using Installment Contracts.

    The thing that I personally worry about is if I do it in my name and something happens to me then are the buyers out of luck. I am thinking that the best way to do it would be in an LLC so that there are safeguards for the buyer also. Anyone have any suggestions on this?

    (I clicked the Notify me of Follow up replies so hopefully I got it right this time)

    Kevin Rhatigan
    Participant
    Post count: 107
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    @charliebarks

    Thanks Charlie, great to hear from you!

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