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Land Investment Strategies That Work

By Edited Nov 13, 2013 0 0

Purchasing land as a form of investment is a strategy that has been around in some form for generations. It is a well-proven technique that has a history that literally stretches for hundreds of years. Even though the techniques are ancient, they are still viable in today's investing market. Land investing is not that hard to implement either. You can purchase a piece of property with a down payment and watch its value go up as the years go by. Investing in land is definitely not a strategy that will enable you to get rich quick, however, it is a good way to put your money in a safe place so it can grow over the long-term. Just about anyone can invest in land. It's not hard to do at all. Following through on a simple strategy is generally all it takes. Although there are a lot of different real estate strategies you can implement, let's take a look at three of the simpler ones.

One specific example of a strategy in land investment is when you buy a tract of land and make improvements to it. There are a lot of different ways you can do this. For example, you could take a piece of abandoned property that is filled with trash and brush, clear the debris and the land will instantly be worth more. The land could then be sold for a profit or a building of some kind could be built on it to increase its value even more. The building could then be either sold or rented for a lifetime of income.

Another example of a very simple land investment technique might involve purchasing an existing commercial real estate building to be leased out to tenants. Such real estate could be in the form of an office building, warehouse, manufacturing facility or even apartment buildings. This affordable strategy only requires a small down payment from the investor. Typically, this is usually no more than 20 percent. The remainder is financed for 15 to 30 years. Once the property is leased out to tenants, monthly income will then be generated that can be used to pay off the monthly mortgage payments. After a number of years have passed, the mortgage will be completed paid off and the investor can then enjoy the benefits of receiving 100 percent of the monthly rent.


The last of the three real estate investment techniques we'll look at involves buying a property that is distressed (meaning that it's about to go into foreclosure) and then turn around and resell it for a quick profit. The owners of these homes usually can't make the payments any longer for a variety of reasons and are often motivated to sell quickly. It's not unheard of to get a distressed property for as much as 20 percent below retail. Some investors who purchase these homes will even make a few improvements to the property before selling to increase the value even more.

Complicated and hard to understand are not words that have to be associated with investing in land. If you can take the time to learn just two or three of these strategies really well, you will be fully prepared to profit in this form of investing.


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