01/23/2020
When people think of real estate investments, they associate them with rental properties, commercial properties and/or foreclosures. But people rarely think of raw land as an investment and end up missing out on one of the greatest opportunities.β
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There are many benefits to owning land. First, land ownership gives the owner peace of mind. As a long-term, tangible asset, raw land doesnβt wear out or depreciate, and there is nothing that can be stolen or broken on it. It is a limited resource that is relatively inexpensive to own and requires little maintenance. In other words, it is a relatively hands-off investment. There is also little competition in the land market as most real estate investors are focused on investments such as rental and commercial properties.β
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Contrary to popular belief, there is a large profit to be made in land ownership, but it is not a get rich quick scheme. Here are a few examples of ways to make a profit through land ownership:β
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Buy and Hold β Purchase land at a good price, hold and sell after appreciation.β
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Establish a Farming Lease β Farmland has historically produced larger returns than stocks, bonds and mutual funds over the long run. A landowner can normally earn enough from agricultural leases to cover the taxes and insurance, and still make a small profit. However, keep in mind that farmland is normally more expensive and will require more capital to get started.β
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Establish a Hunting Lease β Hunting lessees normally take excellent care of the property they are leasing. They also do a great job of patrolling the property and keeping away poachers. As in a farm lease, landowners normally earn enough from a hunting lease to pay the taxes and insurance.β
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Offer Owner Financing β Land loans can be difficult to secure from traditional banks at times. Offering a buyer owner financing is a way to sell the land and earn interest. Most owner financing deals offer higher interest rates than traditional banks.β
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Interested in Land or KNOW some one that is? DM me or Email me at β
[email protected]β
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