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) 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 land owners (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 Virtually No 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 virtually no competition with land. You see – most real estate investors have their minds stuck on: “houses”, “apartments”, “commercial property”, because that’s what everyone else does. Most investors don’t understand the superior benefits of 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, 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) Add Seller Financing to the Mix and EXPLODE Your Income Potential.
When you combine vacant land with the power of Seller Financing, it’s 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 money” financing, a land investor can use this to their advantage by charging a higher-than-market interest rate and many people will gladly pay it. Seller Financing is also a great way to create multiple streams of passive income that act like rental properties, but come with virtually none of the typical headaches that rental properties are known for.
8) 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.
9) Land Gives it’s 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?
10) They Aren’t Making Any More Of It.
Most people don’t think of vacant land this way, but the reality is – 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.