Investing In Land: A landscape of opportunity
1) With vacant land, you don’t need to “do” much to it.
Forget construction! Forget renovations! You don’t need to be an expert or know anything about how to rehab a property yourself. In most cases, you really only need to much to it. You simply need to be familiar with your local city/county ordinances to insure that you are in compliance with their most current ordinances. Ordinances will vary in different areas.
2) Land ownership is a like a cactus. It sustains itself.
Do you want to stay away with tenants, toilets, bugs, mold, lawn care, leaking roofs, bursting pipes, broken furnaces, and the hundreds of other issues that come with owning buildings? Vacant land is not a high-maintenance piece of property. Once you buy it… it sits there, it sustains itself, and you do not have to do much to it!
3) Statistically speaking, vacant land owners are eager to sell.
Why? Because typically, vacant land owners are usually absentee owners. This means that the owner or owners do not have a deep emotional connection. Their emotional connection is with their primary residence, the place they call ‘home.’ In most cases, land owners do not know how to optimize their land correctly, so they may be willing to sell their land for less money.
4) Land investors have very little competition.
The beauty of owning land is that there is virtually no competition! Most real estate investors devote their time with realtors that can find them houses and condos. They want to buy low and sell high. They do this because that is what mostly all other investors do. Most investors don’t understand the superior benefits that come with vacant land ownership.
5) Land Investment is less expensive to purchase vs. a house or condo
Most land has to be bought in cash. There are very few banks or mortgage companies that will fund land purchases. When you buy land with your own, completely avoid dealing with banks and mortgage brokers. You also avoid applicant fees, loan origination fees, and other costs that come along with financing.
6) Vacant land properties can be purchased without ever seeing them in-person.
In today’s real estate market, properties are bought virtually. Land can be purchased the same way. The beauty of land is that it doesn’t involve any structures, so the inspection process is simple. The most important element in purchasing land is researching the area. Also, find out if the area already has an infrastructure ( paved roads, cables, sewer, etc.) in place.
7) Add seller financing to your listing and you could have multiple offers.
Should you decided to sell your vacant land down the road, you can market your vacant land with seller finance. It can open up the doors to finding MANY more buyers, because most banks are very hesitant to lend money on vacant land.
8) As a long-term investment, land is inexpensive to own.
When you buy a piece of land for the right price, there are no mortgage payments to make, no utility bills to pay, the cost of property insurance is nominal (if you have it at all) and property taxes are certainly a lot less than property taxes of a home. If you want to put your money somewhere and forget about it, vacant land could be exactly the investment vehicle you’re looking for.
9) Land gives you a vehicle to use in the future.
Because land is a long-term, tangible asset that doesn’t wear out, doesn’t require remodeling, and nothing can get broken, stolen, and does not need updates, it can be a delicious recipe for future profits.
10) Thousands of communities are being developed across the country. Land is not built. This is why it is a rare jewel.
Land is an extremely valuable resource with limited quantities available. You will need to research areas where there is land inventory. There is where opportunity exists. People invest in stocks, bonds, mutual funds and 401Ks because they all make sense in certain scenarios. Guess what? SO DOES LAND!