If you’re a real estate investor and you’re wondering what your next investment should be, have you considered investing in land? It’s an often-overlooked investment with a lot of potential, and it’s a simple way for someone to extend their real estate investing portfolio in a different direction. Diversification is an important investment principle. In this post, we will share 4 reasons to add Florida land to your portfolio.
Some investors will ONLY invest in land, yet many investors don’t even think of it as a viable option. If you’re a real estate investor, have you considered investing in land? There are many reasons why land might make sense for your next acquisition.
Here Are 4 Reasons To Add Florida Land To Your Portfolio In Florida…
Reason #1. Diversification From Developed Properties
We all know that diversification in your portfolio is a good thing but when you invest in real estate, how do you diversify? One way is to invest in raw land instead of land with a building on it. Land with structures (whether residential or commercial) can be a lot of work and have a high cost just to maintain. But land without any structures is much easier and cheaper to maintain – you may only need to mow the lawn and that’s it! We’re not saying that you shouldn’t invest in real estate with homes or commercial buildings, but it’s nice to have an investment where the structure isn’t a concern.
Reason #2. Long-Term Investment Potential
Investing in land can be a long-term play, especially if you buy outside of a growing city. Some investors will buy empty plots of land near a city and then wait for the city to grow. It might take a few years but as the city expands, a well-chosen plot of land could be on the path of progress (i.e. development). Before you know it, the city has grown up around that piece of land and it’s now worth a lot more. You will certainly get a number of calls and letters from developers wanting to pay you top dollar for your property. And if you want, you can develop the property yourself!
Reason #3. Quick Flips
Land can also be an ideal investment because of its potential for a quick flip. Yes, you can flip other things besides homes (sorry HGTV). You can acquire land very cheaply, make a few small improvements (or none at all), and then sell it to a retail buyer. The profit may not be huge but if you do this right, you can make decent money. A good example might be when you acquire an infill lot that is overgrown with trees and bushes. You might buy it, clear the land, and sell it for a small profit to a local builder who wants to develop the land. This is the strategy that we most often use by finding motivated sellers that no longer want their land and purchasing their properties and then reselling it to someone who wants the land!
Reason #4. Multiple Exit Strategies
Just like with houses, there are a number of ways you can make money with land. Raw land investments have multiple exit strategies: you can keep it for yourself and enjoy the land recreationally (strategy #1) before deciding what to do next: you could sell the land the way it is (strategy #2), or subdivide the land and sell it in pieces (strategy #3), or even start building on the land yourself to sell (strategy #4) or rent (strategy #5). There are so many ways to make money from investing in land.
Summary
Florida is one of the fastest-growing states in the country! People are moving here from all over to enjoy the warm weather, beaches, and lower cost of living! Therefore, the need for land is on the rise. Land investing is a compelling way to invest in real estate without the hassle of tenants, toilets, or termites. If you’re looking for your next investment, these are 4 reasons to add Florida land to your investment portfolio.
Want to check out what land might be available to acquire in Florida? We can help with that! We have a list of land investment properties that we’ll share with you. Just let us know that you want to see the list by calling (877) 463-9755 or by clicking here to fill out the form.