Real estate is a great way to make money if you play your cards right. It all depends on what kind of real estate you invest in. While times are uncertain right now, certain rules stay the same and you can still come out ahead.
Why Invest in Commercial Land
There are many different ways to invest in real estate. In residential real estate you can fix and flip houses or buy them as rental properties. If you’re feeling more ambitious, you can buy apartment buildings and multifamily housing units. And if you are more ambitious still and have the foresight and resources to make the right moves, you can make a lot of money on vacant commercial land.
A prime example of this is revealed every time you drive by a new Dollar General, the yellow signs seem to be springing up everywhere. Just think of all the folks who recently made a profit selling commercial land to this company. Wouldn’t it be nice to have the right property in your pocket to sell at the right time?
Profit aside, vacant commercial land has some specific advantages to it that make it all the more attractive from an investment perspective.
For one thing, holding onto vacant commercial land is tax-efficient. You’ll have comparatively lower taxes compared to buying actual buildings which are taxed more heavily. Having a lighter tax load makes a big difference in property investment, an arena where one of the biggest risks is overleveraging and falling behind the cost of maintenance before a property sells.
On that note, that’s another reason why vacant commercial land can be a superior investment. You won’t have to pay to keep an entire building and it’s exterior, including landscaping and parking lot, maintained if for example you had bought an apartment complex. The added responsibilities quickly become expensive, especially in older buildings where problems are more frequent and invariably more expensive to fix than in newer buildings.
The Importance of Building a Portfolio with Land
If you are serious about investing in real estate and want to maximize your potential profits, it would be in your interest to add vacant commercial land to your portfolio. The beauty of having a portfolio is that it will pay off more as you go along. For example, you might only be able to afford one or two pieces of land or properties in the beginning. Once you’ve sold them you can pocket a tidy sum for yourself and reinvest the remaining sum into the purchase of additional properties. The more properties you sell, the more you can buy each time around. Or you can wait until your capital is more robust before investing larger amounts into more valuable properties, the ones that may have been too expensive to act on when you started out.
One of the most appealing aspects of land as an investment is that it is a finite resource. The fact that there is a limit on how much commercial land is actually available at any given time works in your favor as an investor. You can turn the supply limitations of land to your advantage with spectacular results in the right areas where prices can be expected to spike over time.
Investing in vacant commercial land is a smart move, especially during a buyer’s market with falling prices.
Partner with a Real Estate Company You Can Trust
While you can do your own market research before making a purchasing decision, it’s always wise to consult with an experienced real estate professional familiar with potential values of commercial land in the area.
The Meridian Real Estate Group has well over a decade of expertise in investment land transactions. We are a full service real estate team that can handle smaller single investments to larger tracts of land including assemblages. Land deals require specialized proficiency that most residential agents don’t have, however with our years of knowledge and experience you can be assured we will guide and represent you successfully. Contact us today at 678-631-1723 to get your process of investing in land started. We look forward to serving you.