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The hidden benefits of raw land investing

duração da leitura

7 min.

etiquetas relacionadas

Project, Land

autor

Seth Williams, REtipster Club

I’ve said it before and I’ll say it again, vacant land is one of the most overlooked and misunderstood real estate investments in the world. Whenever I tell people I specialise in buying and selling LAND, I get a lot of blank stares. There seems to be a widespread (and erroneous) assumption that vacant land is a “weak” or even pointless investment because…

It doesn’t produce income.
It just sits there and nothing happens.
It’s flat out boring.

It’s an unfortunate misconception because the truth is – vacant land is capable of producing some serious cash flow and it’s one of the best investments on earth because of its hands-off nature and versatility. The simplicity and stability that comes with owning the right piece of land, purchased at the right price, can far outweigh the myriad of problems that come with any other type of real estate. If you’ve overlooked raw land as a viable investment opportunity in the past, you need to take a few minutes and get educated about what land is all about!

Here Are 9 Reasons You Should Be Investing In Land

1. With vacant land, you don’t need to “do” anything to the property.

Forget about building! Forget about renovations! You do not have to be an expert or know anything about how you can renovate a home yourself. The only thing you need to know is the official purpose of the piece of land and then give it a (or no) function.

2. Raw land is a “hands-off” investment.

Have you had enough of dealing 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 doesn’t involve ANY of those things. Once you buy it… it sits there, it behaves itself, and nothing happens.

3. Statistically, vacant land owners are highly motivated to sell.

Why? Because vacant landowners (by default) are always absentee owners. When a person doesn’t live inside of (or even near) the property they’re trying to sell, there is less of an “emotional connection” – because it isn’t their primary residence. In many cases, you’ll find that these sellers are willing to sell their land for pennies on the dollar – simply because they don’t live anywhere near it, it’s not producing any income for them (because they don’t know how to optimize their land correctly) and as a result, they are much more apathetic about it. Find these people, and you will find some incredible deals.

4. Land investors have very little competition to deal with.

Are you tired of dealing with such stiff competition on every property you try to buy? Are you sick of getting outbid on every good deal you’re lucky enough to find? Well, guess what… there is very little competition in the world of raw land investing. You see, most real estate investors have their minds stuck on things like houses, apartments, commercial property and the like – because that’s what everyone else does. Most investors don’t understand the superior benefits that come with land and this can definitely play to your advantage.

5. Land investors call their own shots.

When you buy vacant land the right way, it’s easy to buy each property with your own cash and completely avoid dealing with banks and mortgage companies. When I got started as a land investor, I had $3,000 to my name and to this day, I have never had to borrow money from a bank. Ever. When you know where to look for great deals on land, it requires very little start-up capital to get your business up and running.

6. When you learn how to research properties effectively, you can buy and sell Vacant Land properties without ever seeing them in-Person.

In 2011, I bought and sold a parcel of land and grossed over $44,000. The entire process took me 5 months from start to finish and to this day, I’ve never actually seen this property with my own eyes. Everything was done virtually, using the tools that you and I have available for FREE online. The beauty of land is that it doesn’t involve any structures. This means the inspection process is VERY simple – and if you’re doing the right research, you can easily buy your properties without ever visiting them in person.

7. Land is very inexpensive to own as a long-term investment.

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 extremely cheap. If you want to park your cash somewhere and forget about it, vacant land could be exactly the investment vehicle you’re looking for.

8. Land gives its owner peace of mind.

Think about it – land is a long-term, tangible asset that doesn’t wear out, doesn’t depreciate, and nothing can get broken, stolen or destroyed. Put all of these benefits together with your ability to buy it for next-to-nothing… and can you think of a better combination?

9. They aren’t making any more of it.

Most people don’t think of vacant land this way, but the reality is that land is an extremely valuable resource with limited quantities available. Especially when you purchase land in the path of growth, you will find yourself with a finite asset that a lot of other people want to get their hands on. Stocks, bonds, mutual funds, and 401Ks all make sense in certain scenarios, and so does land. If you go into this with the intent of holding the right property for the long-term, it can make a lot more sense (and be a lot more profitable) than any other retirement vehicle out there.