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Winning Raw Land Investment Strategies
One of the most common land investment strategies that investors use is to buy raw land in an area that has potential for commercial growth. They then hope that development will take place in the future and enable them to reap a profit. Another common strategy used is to buy a piece of land and develop it on your own. All these conventional strategies are fine if you are a professional property developer but this is not something that the average investor should take on.
Many property investors are turned off by the thought of investing in raw land. They would rather focus on buying and selling buildings. This is because the conventional strategies used for investing in land are filled with risks and obstacles. Some of the risks and obstacles include title issues, survey issues, environmental considerations, zoning issues, site plan approvals, getting permits, dealing with county officials, health issues, availability of utilities, availability of transportation and access. All these obstacles deter the average investor from even thinking about investing in raw land.
My partners and I at The Land Institute (TLI) have come up with an ingenious idea that allows investors to make a decent profit off land investment deals using a proven system that is easy to execute. It is so unbelievably easy that trained investors can cut a deal in as little as 30 to 60 days, part-time, after they attend a 3-day intensive boot camp conducted by us. If you would like to find out more about this successful training program, please visit www.landbuyerpro.com and register today.
One of the reasons why landowners or sellers have difficulty selling their land is because they try to sell the whole, big chunk away all at one go. If you have 1,000 acres of land and you were going to sell it for a million dollars, you would have to look for people who have more than a million dollars to spend. This makes the proposition a very niche one, something that few people can afford. Therefore, closing such a deal typically takes a much longer period, which could be anything from one to three years.
The land investment strategies that we have come up with can dramatically shorten the time needed to do a land transaction to as little as 60 days. It is based on the principle of ‘divide and conquer’. Our students are taught to buy a large piece of land wholesale and subdivide it into smaller parcels of land. They then retail it to smaller investors for a profit by conducting an auction. In a nutshell, the idea is to buy the raw land wholesale and retail it in smaller parcels. This idea has been widely used in other industries but surprisingly, very few are using it for buying and selling land. By selling the land in smaller parcels, the number of potential buyers’ increases dramatically, as more people can afford to buy. Based on the previous example of 1,000 acres, if we were to subdivide the land into 20 parcels at 50 acres each and retail it for 3,000 dollars per acre, each parcel of land would cost 0,000. It is a lot easier to find people to buy a 0,000 piece of land compared to a million piece of land. This clever idea has enabled our students at TLI to achieve great success virtually competition-free.
About the Author: Shanu Srivastava has been investing in real estate for over 5 years, and has been involved in over 200 properties. He has completed all kinds of transactions ranging from a Subject To purchase to a pre-foreclosure short sale to raw land quick turns. He is currently teaching students from around the country to find land deals with virtually no competition.