What is to be Expected from an Investment in Land After Four Years?
Land investments are far more common than property investments. They also leave a lot of room for negotiation. Many landowners don’t particularly know what to do with the plot they are holding onto. Many of them receive land in a will. They do not know how to harness the incredible flexibility in land where anything is possible. The fantastic thing is that many of these land plots are still present just outside many major American cities. Many people leave these land plots for Land Investments in already built properties. This leaves a giant opportunity in land.
Land buyers do not have to go to extremely rural areas or in the far outskirts of the city to find great offers. The wide availability of land plots in the states makes them a prosperous investment with a lot of variety in cost and quality. The returns on land are debatable. But, a smart investor can find on average returns that are more than fair.
Less Than Two Years: What to Expect
Though land is meant to be held onto for at least two years, some like to turn it around quicker than that. Most landowners should strive for a 15% return on their investment within the year. This is accomplished by getting involved in land investment and management service and finding a special financial team to market to buyers. The expectation with a two-year hold on a land deal is 15% though some owners have found upwards of 30 to 40% on their initial investment.
Two to Four Years: Expecting Big
Landowners who hold onto the property for over 18 to 24 months should expect a rather sizable return. The target goal should be between 80% to 100% of that initial roi investment. Essentially a $50,000 land plot should be sold for $100,000 in that two to four-year span. This type of expectation is more suitable for those who buy land once a year and work with traditional growth stocks.
How are these returns accomplished? The idea is to find sellers who are willing to sell at a deep discount in areas that are in high demand. This will provide a fantastic boost early on, which is held by finding credible buyers in those regions. The retail market is not suitable for buying empty land, so investors need to work with a financial management firm or real estate investment company to get involved with a network of special buyers. Many land buyers only by through specific resources, and that is the key to landing wide margins in a reasonable amount of time.
