When it comes to real estate investment, land is often times the overlooked step-child. There is amazing potential when investing in land that many investors never tap into! Learn more about land investment and strategy in our latest post!
There are various reasons to get into land investment. It can be an excellent way to begin investing or as a way to diversify an already robust portfolio. People from all over the country and in all income brackets are turning to land as a stable and limited resource. Is it right for you? Learn more below!
Guide to Land Investment in FL
Land is Low Maintenance
You don’t have to do much with a piece of land. You may some have some landscaping done to manage weeds, but otherwise, it basically just sits there. Find out if utilities or other expensive assessments will be enforced while you own the land. You wouldn’t want to buy a $5,000 lot, only to find that you will be paying $20,000 (over time) to have water ran to it.
Easy to Get Started
Having a vast amount of experience isn’t required to get started in land. Learn about the market and see what lots are being sold for. Are there seasonal trends? What does future population growth look like? Are there development plans or changes in zoning on the radar? Is the land ready to be developed, or is it raw with no foreseeable plans nearby? You should be able to find something for a few thousand dollars by doing your homework.
Why Is It For Sale?
Plots of land in one neighborhood might be impacted by completely different environmental factors. There may be protected animals living on your lot, and not your neighbors. This can lower the value of the land, because it limits your ability to build. Maybe there are oil tanks in the ground or frequent flooding problems from the creek nearby. It’s important to learn as much as possible about the lot before buying it!
What’s Your Strategy?
Flip It – To do this effectively, you need to buy low and sell high. You can do this by finding unlisted deals, or by directly contacting the owners of lots that look overgrown and forgotten. Maybe the lot was purchased long ago, and is all but forgotten about until it’s time to pay property taxes. You can create relationships and possibly take unwanted real estate off the hands of owners by reaching out to them directly. Always be courteous and respect privacy when contacting any property owner. If they don’t want to sell, never bother them in hopes of doing so. After purchasing a lot, you should market the property to retail buyers. These are people who want to build a home on the site for themselves, etc.
Buy And Hold – Land is excellent for buying and holding. It typically appreciates over time and the maintenance is simple. Your primary expense will be property taxes, which are significantly lower than taxes on a home. You can hold until land values jumps or until development plans are put into place.
Lease It – Another option is to lease it to a party that has a use for it. This translates into almost 100% for you. Interested parties may be farmers, hunters, or a nearby business looking for parking. Obviously, you will need to make sure the lot is zoned for what your renter intends to use it for.
Are you interested in buying and selling land in the Orlando area? We would love to help you! Send us a message with your investment goals or give our office a call now! (407) 852-5400