A System Approach to Vacant Land Investing

by | Oct 22, 2014 | Uncategorized

“Buy land, they’re not making it anymore” -Mark Twain You may have heard land is a great investment.  The quote above emphasizes this very point. If the human population is increasing and the supply of land remains constant, then the value of land is bound to increase over time due to the law of supply and demand. Most people think that when they invest in vacant land, they are committing to a long-term investment with the risk of losing money in a down market.  However, land investments can return a profit much quicker than 10, 15, or 20 years, as long as you the investor follow proven basic principles.  For instance, by purchasing land in fast growing areas and applying the principles mentioned later in this article, property will typically appreciate at a steady rate in a short amount of time without much downside risk. Don’t Get Caught in the Hype… Many investors identify a solid land investment based upon the buying decisions of the masses. For example, if you receive a flyer advertising land for sale in a given state, you may ask yourself, “Why would I ever invest in that area?” You then receive the same flyer over and over again, unbeknown to you that the prices in this area are consistently going up. A few years later, when someone “trustworthy” gives you a tip on where the next great land investment is located, you finally decide to react.  Thus, based on the suggestions of inexperienced investors, you invest all of your hard earned money in an area that is now overpriced. This is the first mistake...