Raw land investing has become increasingly popular among real estate investors over the last decade. Raw land (i.e. vacant or undeveloped land) is a great way to earn and maintain steady cash flow, but it isn’t necessarily the perfect option for every type of investor.
Real estate entrepreneurs come in all different shapes and sizes, and with all different goals and aspirations; however, there is one common trait they all share: the desire to be their own bosses and rid themselves from the confinements of their nine to five jobs. Because there is such variety among the real investing crowd, it makes sense that not every investment opportunity will benefit every investor in the same way. Rehabbing properties might work well for one investor while another, equally successful, investor might have better luck with buy and holds. Does this make either investor better than the other? No. Quite the opposite, in fact. Because each investor knows how to play to his or her strengths, they both excel in their individual niches.
So, will raw land investing be your new niche? Consider the following four items before making that decision:
Deciding which path to take in the world of real estate investing is something every investor should put a lot of thought into. It is important to ask yourself the right questions and do the proper research before jumping into a particular niche so that you set yourself up for success. The ability to designate yourself as “man (or woman) in charge of your own destiny” and call your own shots sounds pretty enticing, which is why most people want to start a career in real estate investing; however, if you want to run a stable, profit-producing business, it is crucial to not jump in the deep end of investing too fast.
This is where raw land investing comes to play. If you are a person who is just getting their feet wet in the real estate investing pool – or even if you’ve been running your own successful investment business for years – making a raw land investment is a great place to start or expand your business. If you like property that is relatively inexpensive, low maintenance, and can produce significant cash flow, undeveloped real estate is about to become your new best friend.
The great thing about investing in raw land is that there is virtually no competition, which is perfect for those whose negotiation skills aren’t quite up to par. Most real estate investors get so caught up with rehabbing, wholesaling, and rental properties, that they fail to see where another great opportunity lies: raw land. Land is a limited resource, so those who own a piece of it are considered to be highly valuable, especially as raw land becomes more and more scarce. It can be purchased for fairly cheap, and once you own some, there isn’t much you have to do. The beauty of land is that it acts as the ultimate buy and hold. There are so many ways to make money off of raw land as well. You can rent your land out to farmers or hunters, you can develop it, or you can simply let it appreciate and sell it down the road as land becomes even more limited.
Are you ready to invest in land? Contact an expert member of the Asset Quest team to learn more.