When it comes to investing, real estate properties with buildings on them are one of the first things people lean towards. The idea of managing a property and/or renting to tenants seems like the most viable way of generating income by investing in real estate.
But, there’s an alternative option for those of us who aren’t so keen on handling maintenance and collecting rent. Investing in land can be a highly profitable venture if you do it right. Let’s take a look at five benefits of doing so, in case you’re interested.
1. It Requires Almost No Work
When you invest in a property of some sort, there’s usually some amount of additional work you’ll have to put into the building. Add-ons, new construction, maintenance, and other necessary tasks require a ton of time and energy to complete.
With land, you don’t have to do anything. You just buy it, and that’s it. Your goal is to sell land fast to someone else who has big plans for it, so there’s very little work involved in buying and selling land.
2. It’s a Hassle-Free Purchase
Oftentimes with real estate, buying a property can be a bit of an emotional process for the seller. Also, they may want to charge higher prices because of an over-inflated sense of value due to the personal work they’ve put into the property.
Vacant land owners, on the other hand, have no skin in the game. They don’t normally have an emotional attachment to their land or any sense of how to properly monetize it. As such, they’re willing to let it go for absurdly low prices.
3. Less Competition
If you’re investing in homes or buildings, you’re gonna have a lot of competition on your hands. With land for sale, however, there’s simply far less competition. Not many people want to start from scratch when it comes to monetizing a property, so you’re far less likely to get outbid by somebody on a vacant land property.
4. No Banks Involved
Dealing with banks can be an extra burden that draws out the buying process and often eliminates potential buyers from contention because they can’t get approved for a loan.
According to Corey Tyner, a consultant for land buyers, land purchases tend to be cheaper, however, and you can finance your buyer out of your own pocket by offering extended payment schedules and interest. By cutting banks out of the equation, the process is much simpler and easier.
5. No Travel Required
You wouldn’t buy a home or building without seeing it in person first, would you? Well, with land, all you need is an internet connection and Google Maps to inspect your property. This allows you to purchase reliably usable land anywhere in the world from the palm of your hand.
Imagine how much wheeling and dealing you could do if you never had to personally visit any of the real estate you were buying and selling. It’s a potential income explosion just waiting to happen.
Land is a Finite Asset
There’s only so much vacant land to go around. By investing in land you can get your piece of the pie while it’s still here and flip properties much faster than you could dealing with homes and other types of construction. Investing in land requires very little expertise and can be a major cash cow for you if you play your cards right.