Land is often overlooked when it comes to real estate investment. And no surprise there is amazing potential in land investments that many investors never tap into!
Don’t Miss Out On Profiting From A Land Investment!
Land can be an excellent entry point into investing or a way to diversify an already robust portfolio. Investors from all over regardless of income are turning to land as a stable and limited resource.
Is it right for you? Learn more below!
Land is Low Maintenance
When it comes to owning land, there isn’t all that much to do. Perhaps a bit of general landscaping to keep weeds and hedges in control. But other that that, land is just land.
One thing, in particular, to be aware of is whether there are utilities or other expenses that will be enforced while you possess ownership of the land.
For instance, you wouldn’t want to spend $5,000 on a lot and then discover you will be paying $20,000 (over time) to have water ran to it.
Easy to Get Started
You don’t need to have a ton of experience to get started in land. Do your homework and you should be able to find something for only a few thousand dollars.
A good rule of thumb is to learn about the market and see what lots are going for.
- Are there any seasonal trends?
- What does the future population growth look like in the area?
- Are there any development plans or changes in zoning on the radar?
- It is development-ready or is it raw land with no foreseeable potential?
Why Is It For Sale?
Just be land is relatively easy to maintain and there’s not much to do doesn’t mean that every plot is the same. Plots of land in one neighborhood might be impacted by completely different environmental factors that you need to take into consideration.
For instance, protected animals might reside on your lot and not your neighbors. This can and in most cases will inhibit your ability to build, thus lowering the resale value of the land.
Maybe there are oil tanks in the ground or flooding from the creek nearby is a persistent and regular problem. Regardless, make sure you find out as much as possible about the lot before making a purchase!
What’s Your Strategy?
To flip land effectively, you need to buy low and sell high.
You can do this by finding unlisted deals or directly contacting owners who seem to have let their land become overgrown and neglected. The land may have been purchased long ago and forgotten about until it’s time to pay property taxes.
Reach out to the owners directly, and try to build a positive relationship between yourself and potential sellers. It’s possible that you might come across landowners who wanted to sell but didn’t know how to get the ball rolling.
- When you contact any property owner, always be polite and respect their privacy.
- If they’re not interested in selling, never harass or pester them in hopes they’ll change their mind. This strategy typically backfires.
- After successfully purchasing a lot, you should market the property to retail buyers. People who are looking to build on the site for themselves.
Buy And Hold
Land is an excellent investment to buy and hold.
Land is low maintenance and it will typically appreciate over time. Your primary expense will be property taxes which are significantly lower than taxes on a home. You can hold onto the lot until the market improves considerably or plans for development come together.
Lease it to a third-party that will pay YOU while using the land.
This translates into almost 100% profit for you. People who might be interested in renting land consist of farmers, hunters, or nearby businesses looking for parking. Does your land have a lake or site? Is it a fabulous fishing location? Charge people to come fishing at your lake. There are lots of creative things you could do with land.
Just make sure the lot is zoned for what your renter intends to use it for.
Are you interested in buying and selling land in the Miami area? We would love to help you!
Send us a message with your investment goals or give our office a call now! (305) 916-3328
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