Land Investing: What You Can Do to Get Started in 2021

Land and real estate continue to be popular investments for people across the United States. If you’ve been considering making investments in property, this could be your year to get started.

Of course, if you’ve never purchased investment land before, you might not know where to get started. Here’s a few things to know about beginning with this type of investment and some of the steps you can take in 2021.

There are several ways you can invest in land in Alpine, TX. Here are a few examples of some of the land investing strategies experienced investors take.

Land flipping

This is one of the more popular forms of land investing. It involves purchasing a parcel of land at a low price when you can get a good deal, and selling it for a higher price later. You might be able to find great deals at foreclosure auctions or tax sales if you’re interested in flipping.

Some of the best profits in flipping can be made if you get the proper entitlements for the property to make it more marketable, and thus more valuable. This could involve getting the property zoned (or re-zoned), clearing it for development, subdividing it for multiple developments, or getting it permitted. This work saves a new prospective buyer time and risk, and also makes the land more valuable.

For example, if you purchase a five-acre property, you might consider separating it into five separate parcels that you can sell individually, resulting in significantly more money than selling the single plot as one property.

Buying and holding

You might consider purchasing raw land and holding it long term, believing there to be some potential value for that land in the future. You could, for example, wait for demand in the area to increase, or simply hold rights to water, air or minerals on that land. Keep in mind that as long as you hold the land, you are responsible for paying taxes on it and keeping up with whatever maintenance is required.

Development

Development of raw land can also be very profitable for investors, though it is likely to take a lot of time and money. If you’re interested in development, it’s very important to make sure you have a long-term plan for how you will turn a profit, and that there is demand for whatever kind of development you will be producing on the property.

Buying and leasing or financing

You may wish to purchase the land to create an income stream by leasing it out to another party to use. Say, for example, you have several dozen acres of farmland, but don’t wish to farm it yourself. You could lease the land to a farmer, who pays you rent and then is responsible for all development, maintenance and taxes.

You could also purchase the land and then sell it with owner financing, in which you carry the financing for the buyer, acting as a bank.

For more information about how you can get started with land investing and for the best land investing strategies to use in Alpine, TX, contact the team at Carpenter Real Estate today.