Investing In Raw Land

When we think about investing in real estate we think we can only consider buying houses, apartment buildings, or perhaps offices or retail centers.


These are all perfect investment vehicles as we are learning, but don’t overlook the opportunity of undeveloped land.

Real estate doesn’t need to have buildings on it to be a highly profitable investment if you know the strategies of buying rawland.


Traditional logic has always thought that raw land can’t generate revenue through rents, so you shouldn’t buy it.


It’s true that you can’t put a tenant on a piece of land; there are other possible ways to make money raw land than land that has buildings on them.


Ideas Of when to buy Raw Land


1. Buy ahead of growth just look where the sprawls of cities are going.


Development companies have used this strategy for years to make astronomical amounts of money.


2. Determine the pattern of growth in an area.

a. Review the aerial photos taken by your city or county over the past five or ten years.

These photos are public record and usually available through the local property appraiser’s office.

b. Review the area’s comprehensive plan. It will tell you when roads, utilities, and municipal services will reach specific areas.


3. Look for vacant land that is in the path of known projects or possible projects, at least a little as one to two years, but not much longer.


If you find such land buy or lease it, hold it till it’s just under peak price, then sell for a profit.

You can Develop It

1. Developing land can be simply getting the zoning changed to writing a business plan and contracting builders for developing the property.

For this project you will have at have some real estate investing experience and some education on the subject of Land Deals in order to get the most money out of your development.

2. Go to any Website that offers home designs, pick out three or four designs.

a. Contact at least three reputable Building Contractors in your area and get bids on the different designs.

b. Put an add in the paper, or just a sign in the field that says, “We build to Suit.”

c. When you start getting calls. Make sure you have rezoned the property into lots then sell the lots to the clients and refer them to the Builders, give them a folder with every builder’s quote and style of house.

It doesn’t have to be fancy just basic floor plans and bottom line cost. You will be on your way to making lots of money.

3. If you buy ten acres for lets say $300,000. Then sell half acre lots for, (we will make easy round numbers here) $50,000 you will make $700,000 on that ten acre piece of land.

Land deals will always involve larger dollar amounts than normal residential investment.

Which is why they are very attractive, which is also why you have to do extra homework and try to find the right land.

The time you devote to raw land will be worth the investment though; it has been the biggest moneymaker in the history of theworld.

Why shouldn’t you try?