“Well, this is definitely in the middle of nowhere,” I commented as I got out of the car.
We were in California and had decided to visit one of our properties in the middle of the San Bernardino desert.It was nearly an hour from the nearest town and there wasn’t a home in sight.
Just the pristine Mojave for miles around. And how much do you think we made when we sold this sandy patch?
Well, nearly 5 times our initial investment! Sometimes you just need to stop, admire the desert view and have faith that others will too.
Land Investing
We have a tremendous amount of confidence in the power of raw land and have managed to build a business selling properties just like the one above.
Not only is it fun, but despite what many may believe, it’s profitable. Here are a few reasons why we love investing in vacant land that may make you rethink real estate!
Price Point:
Rural vacant land is very affordable. We often buy properties for under $1,000, proving that land has the lowest barrier to entry out of all real estate types.
Even if you have poor credit and a small amount of money, you will likely find a parcel of land you can afford.That is, provided you are looking in the right areas and do your proper due diligence.
ROI:
As I mentioned in my story above, we are able to generate a return on our investment of 5x in many cases.
Of course, you have to buy at the right price and understand how to sell your product to do this. Still, there are not many assets that can generate these kinds of returns.
However, I can’t reiterate enough that you must do proper due diligence. So, it’s worth investing in proper training before starting to invest in land yourself.
Low Risk:
Yes, vacant land is a unique product type, and many people do not know how to market it.
However, if you purchase properties at the right price and understand how to price and market your land, there is little risk. This is because you can easily diversify your portfolio by buying properties in different states.
You can also manage your risk on each transaction by only buying properties under a few thousand dollars. This way, even in the event of a worst-case scenario, you won’t lose much money.
No Carrying Costs:
Land is basically a hands-off investment with very few carrying costs.
Unless you want to develop, build on or otherwise improve your properties, all you will need to do is pay property taxes. And these are often incredibly low.
Less Competition:
Because land is such a misunderstood asset, many real estate investors are working in this market. Most real estate investors are looking at residential and commercial properties.
This means there is little competition for land investors. And there you have it! Land investing is a great opportunity for those who can see it.
Finding Help with Moving Professionals
We hope you found this blog on 5 Facts About Land Investing to Make You Rethink Real Estate useful. Read Placing Your Commercial Property for Sale? for more great tips!
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