Top real estate investors believe in the power of owning land. It has given many people their start in real estate investment and continuously proves itself to be a reliable and lucrative way to invest. In our latest post, we will explain how to make money buying land in Chicago.
Typically, it is pretty easy to get your hands on a piece of land. You will likely find motivated owners who will be excited to receive an offer on their property. Many parcels are priced low, so you won’t need to get a loan or work with the bank. Most landowners will love that you can pay cash and don’t have to wait on the banks to come through with a loan. For only a couple thousand dollars you can buy your first piece of land, building yourself an empire over time.
With land, you will often find you are able to buy and sell it without ever even seeing it in person! This makes it easy to buy land where the deals are, even if it is far away from where you live! Unlike a house, you will not need a property inspection before you buy! That’s not to say you shouldn’t do your research! You wouldn’t want to find an endangered species lives on your lot, there is bad soil or building restrictions you weren’t aware of before the purchase.
Unlike traditional real estate, there is little competition in the land market. Most people who are looking to buy for their own use will purchase a home that is already built, not a piece of land to build on. With land, your primary competition will be from other investors, so make sure you do your homework before buying!
Land Is Low Maintenance
Land requires little to no work on your end. Property taxes will be much lower than owning a house, and you won’t have to worry about maintenance or utilities. Typically the only maintenance comes from needing to keep the grass trimmed or debris cleared.
You have many options with land investment. You can choose to buy and hold the land. Buy and develop, either flipping the property for a huge profit or renting it out to bring in additional income. You could also flip the land if you are able to acquire it at a low enough price.
There Are Many Uses
There are lots of things you can do with your land to make money. You can lease it to a farmer for livestock or agricultural purposes. Or maybe to an outdoorsman who likes to fish, hunt or hike. A smaller lot can be leased to a neighbor so they can have some additional space. Commercial land can be leased for parking to nearby businesses.
In addition to leasing out your property, you could always buy a large tract and sell out the lots individually, subdividing the land will increase it’s overall value.
Ways To Show It Off
When going to resell, make sure to mark off any property lines. You can have this done professionally or on your own so long as you know where the lines are. This can be as simple as using a small fence or flags at each corner of the lot. To take it one step further, you could mark off the boundaries where a house could go. This will help people see the potential in your pile of dirt. Before listing the lot for sale, make sure the lot is cleaned up and all debris is removed. Nothing like a pile of junk to deter a potential buyer.
Know The Costs
Even a cheap property will have closing and transfer costs to be aware of. You will also have to pay the property taxes and any maintenance that is needed.