Three Proven Land Investment Strategies

Three Proven Land Investment Strategies

Investing in land is one of the oldest forms of investment. It has a history that literally goes back thousands of it’s still relevant today. With an investment in land you can make a down payment on a piece of property and watch it increase in value as the years pass. It’s not a get-rich-quick type of plan by any means, but it will allow you to safely park your money for long-term growth. Investing in land is not complicated; anyone can do it. You just need to plan a conservative strategy and then follow through with it. There are many such strategies you could use but we’ll take a look at three possibilities.

One simple land investment strategy involves purchasing a piece of real estate and making improvements to it. There are many different variations on this theme. In one example, a person could purchase a piece of land and clear the brush and rocks and use it for farmland. The land could be profitable each year as the owner/farmer grows produce and raises livestock. Such an investment could produce a lifetime of income and even be passed on to subsequent generations for further farm use.

Another simple land investment strategy could involve purchasing a piece of commercial real estate. The commercial real estate could be apartment buildings, office space, a manufacturing facility, a warehouse or any other type of real estate that could be rented to a tenant. The great thing about this strategy is that the owner only needs to put down a small deposit (usually around 20 percent) and takes out a note for the remainder. The monthly rental receipts are then used to pay down the note. Eventually, the tenants pay down the note in full for the owner and the monthly rental receipts become pure profit.

Yet another very simple land investment strategy is to purchase a foreclosure property to sell for a profit. In such a scenario the owners are unable to make the payments and the bank is making preparations to repossess the property. These homes can usually be quickly purchased for as much as 20 percent below value and then resold for a profit. An industrious investor can even make a few targeted improvements that can dramatically increase the value, resulting in greater profits.