Seasoned real estate investors always get awkward when land as an investment platform is presented as a solid addition to their real estate investment portfolio. Most real estate investors see land as a boring investment that doesn’t produce income basically many investors feel that land investments just sit a do nothing, but this notion could be further from the truth. Land is actually a wise investment opportunity as it is incredible versatile, requires little to no maintenance and can produce some killer cash-flow to your investment portfolio.
When you purchase tangible land such as a rental home, fix and flip or commercial real estate, maintenance is surely at some point going to be required. This maintenance is of course going to cost money for your overall investment return. With land, maintenance is rarely required. As long as the lot can be built on by someone in the future and you can purchase for a fair price, you’ll be able to see a high ROI.
Land owners generally don’t have an emotional connection to their land as they would a primary residence and are almost always motivated sellers. For these types of absentee owners, the land lot is not producing any income (as they don’t have the correct investment tools to create ROI on their land) and are willing to sell for rock bottom prices.
Land investors really break the mold when it comes to real estate investment. Most real estate investors do what the “other guy” does because it’s how they’ve learned to invest. They stick to conventional methods of real estate investment like homes, apartment buildings and commercial properties, but miss out of the great income producing results of land. In the end this is actually helpful to the land investor as there is much less competition over land lots for sale.
If you are ready to mix up your investment portfolio by adding land lots contact a member of the 9 Core Team!