Well that is a vague question. Where is the land located? Buying land is the most risky investment you can make, it does not produce income. I buy and sale land like crazy, but I only do it in high appreciation areas where land is going up up and away.
Two of the benfits, to me, that makes me invest in land more then homes are 1) It's dirt, plain and simple, nothing for the buyer to complain about, ie. carpet, paint, whatever.. IT'S DIRT 2) I would rather have $20-30K loan on my credit then a $200,000 loan against my credit, helps with your debt to income ratio when applying for more credit.
One very nice benefit is buying low and selling high.
Everyone grows into REI with their own angle. I happen to like lots and acreage. I like the low maintenance factor, no sloppy tenants, and no repairs.
[addsig]
Thank you both for your comments and feedback. I know my question was pretty vague (as you put it MT, lol) but I'm not too sure about purchasing lots at this point so that's why I asked the way that I did.
However, considering some of the things you both mentioned about it being a high risk, buying low / selling high, etc., I have a few counter questions to ask you both:
When you stumbled upon the property that you thought would be a great investment move, how long did you hold onto it?
Did you market your property online or through an agent (which I know that one of you are) to sell it? Basically, what were some of the marketing strategies that you used to sell it? and was it hard to sell once you purchased it?
Thank you both (and anyone else) for the time and effort that you put into answering these questions. I really appreciate it!
My first parcel I did stumble across. Thought it would make a great investment but now I've kept it for personal use. After that, no more stumbling but rather planned purchases. The standard length of time for me to go from a buy to a sell happens anywhere from 2 months to 2 or 3 years.
I now buy land for income. You own land, sell it, and act as the bank. (but without being as faceless and unflexible as a bank)
Marketing the property online works the best (for me). I've tried using agents, free classifieds, etc... but haven't had luck. My marketing strategy, is great pictures, great description, owner financing, no hidden fees, no credit check or qualifying, being open and honest with all aspects of the deal. Oh, and using a basic land contract for the transaction.
In CA, the demand for property is high. I have been able to sell quite easily. I'm sure that will vary from state to state.
[addsig]
I was told by my friend that you could get loans for owning Lots in FL. Is that true? Here is NJ, you don't get loans for buying lots. Any recomendations on who would finance lots in FL.
Thanks
Well that is a vague question. Where is the land located? Buying land is the most risky investment you can make, it does not produce income. I buy and sale land like crazy, but I only do it in high appreciation areas where land is going up up and away.
Two of the benfits, to me, that makes me invest in land more then homes are 1) It's dirt, plain and simple, nothing for the buyer to complain about, ie. carpet, paint, whatever.. IT'S DIRT 2) I would rather have $20-30K loan on my credit then a $200,000 loan against my credit, helps with your debt to income ratio when applying for more credit.
But to each his own..GL
MT
[addsig]
One very nice benefit is buying low and selling high.
Everyone grows into REI with their own angle. I happen to like lots and acreage. I like the low maintenance factor, no sloppy tenants, and no repairs.
[addsig]
Thank you both for your comments and feedback. I know my question was pretty vague (as you put it MT, lol) but I'm not too sure about purchasing lots at this point so that's why I asked the way that I did.
However, considering some of the things you both mentioned about it being a high risk, buying low / selling high, etc., I have a few counter questions to ask you both:
When you stumbled upon the property that you thought would be a great investment move, how long did you hold onto it?
Did you market your property online or through an agent (which I know that one of you are) to sell it? Basically, what were some of the marketing strategies that you used to sell it? and was it hard to sell once you purchased it?
Thank you both (and anyone else) for the time and effort that you put into answering these questions. I really appreciate it!
My first parcel I did stumble across. Thought it would make a great investment but now I've kept it for personal use. After that, no more stumbling but rather planned purchases. The standard length of time for me to go from a buy to a sell happens anywhere from 2 months to 2 or 3 years.
I now buy land for income. You own land, sell it, and act as the bank. (but without being as faceless and unflexible as a bank)
Marketing the property online works the best (for me). I've tried using agents, free classifieds, etc... but haven't had luck. My marketing strategy, is great pictures, great description, owner financing, no hidden fees, no credit check or qualifying, being open and honest with all aspects of the deal. Oh, and using a basic land contract for the transaction.
In CA, the demand for property is high. I have been able to sell quite easily. I'm sure that will vary from state to state.
[addsig]
I was told by my friend that you could get loans for owning Lots in FL. Is that true? Here is NJ, you don't get loans for buying lots. Any recomendations on who would finance lots in FL.
Thanks