- Published: Thursday, 06 February 2014 17:48
- Written by Frank Pylant
Here Are 10 Reasons Why You Should Be Investing In Land:
1) With vacant land, you don’t need to do anything to the property. 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 know one thing: “Is the property suitable for building?” As long as someone else can build on the land if/when they want to, a huge part of the battle is already won.
2) 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) Vacant land (by default) is always owned by an absentee owner. This means that there is less of an “emotional connection” that owners have with their land (because it isn't their primary residence). In many cases, you’ll find that these sellers (especially the motivated ones) 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 use 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) Are you tired of dealing with such stiff competition on every property you try to buy? Well guess what… there is virtually no competition with land. Most investors have their minds stuck on: “houses”, “apartments”, “commercial property”, because that’s what everyone else does. The fact that most investors don’t understand the superior benefits of land will definitely play to your advantage.
5) When you buy vacant land the right way, you can pay cash and completely avoid dealing with banks and mortgage companies. When I got started with land, I had $3,000 to my name and to this day, I've never had to borrow money from a bank. Ever.
6) Once you learn how to research properties effectively, you can buy and sell a parcel of land without ever seeing the property in person. In 2011, I bought and sold a 12 acre parcel of land – where I 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 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 do business without having to visiting the in person.
7) Add Seller Financing to the mix and EXPLODE your income potential. Vacant Land and Seller Financing is a match made in heaven. It can open up the doors to finding many more buyers because most banks are very hesitant to lend money on vacant land. Due to the scarcity of easy financing, you can leverage this by charging a higher-than-market rate of interest and many people will gladly pay it. This is also a great way to create multiple streams of passive income that act like rental properties, but come with virtually none of the headaches that rental properties are known for.
8) Relatively speaking, vacant land is very inexpensive to hold over the long term. When you buy it 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, land could be exactly what you’re looking for.
9) Land gives it’s owner peace of mind. Think about it – this 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?
10) They aren't making any more of it. Most people don’t think of vacant land this way, but the reality is – this 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 would love 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.