“He makes how much per month?” I looked at my partner in astonishment. He had been speaking to a few other land investors in a bid to get me to buy into the business. And one of these investors had disclosed his surprisingly high monthly earnings. I won’t tell you how much, but I’m sure you are wondering the same thing I was. Can you really make that much money from vacant land? There are no tenants after all! Well, with some creativity it is possible. Below are five reasons why you should consider investing in vacant land yourself.
- The Profit Margin:
This may come as a surprise, but investing in vacant land can be very profitable. In our business, we achieve returns of 2-5x on our investments and have never lost money. Of course, you do need to learn where to find cheap land in order to make this work.
- The Price Point:
Rural vacant land is generally one of the least expensive forms of real estate. In many cases, you can buy vacant land for under $10,000. Sometimes, we even buy properties for less than $1,000! With these price points, almost anyone who is interested can enter the market.
- Low Carrying Costs:
Not only is land affordable to buy, it’s also affordable to hold. With no maintenance and no repairs required, it’s almost entirely a passive investment once you own it. You just need to pay property taxes, and these are generally very low. This means that you won’t need much capital to maintain your portfolio.
- It’s Low Risk:
This may surprise many folks, but done properly, land investing can be very low risk. This is because of those low price points. If you never spend more than $10,000 on any one parcel, you know that you won’t stand to lose much on a deal. It is also easier to buy multiple properties in different locations allowing you to diversify your holdings.
- The Lack of Competition:
Land is not the asset of choice for most real estate investors. After all, no one imagines themselves making millions on rural vacant land. Use this to your advantage. If others can’t see the opportunity, that just means more for you.
There is a reason I turned from skeptic to full-time investor – the model works! Of course, it’s not for everyone, but if you have an interest in real estate, you should consider adding vacant land to your inventory today!