People often ask me if, there really is money to be made by investing in land. I decided to write an article to address those questions. Investing in land can be one of the most potent forms of real estate investing that exist, because of the flexibility , low risks, and high returns that can be made. When compared to your typical single family investing , looks like investing in land is far more attractive and lucrative.
Houses are sold quite differently from vacant land. Land is not financed with the same high prices and type of interest structure. Land does not have to be financed at all, since the prices are usually a lot less, when compared to homes. No high monthly payments , or high taxes and no paying for financing. No 30 year mortgages either. This allows you to keep more money n your pocket when investing in vacant land.
Once you understand that, land is not heavily financed the same way as homes, then you also understand, that you can spend way less investing in land.You are also more like to encounter sellers, who are more willing to work with you on the price. With singe family homes, there is the existing note, that has to be satisfied, this prevents the seller from being flexible. After all, you want and need a flexible seller to get best prices, you can possibly get.
With Sellers of single family homes, most homes will still have an existing mortgage, unless, it is a really old home, or the owner paid cash or paid it off quickly. No matter how eager the seller of a single family home is, the underlying mortgage still exists, so thats the limitation.
This makes investing in land clear cut winner in my opinion, than investing in homes. Not only is it the winner, but it's an investment without of all of the ongoing expenses.
Another huge advantage land investing has is,that your buyers can pay you cash and don't have to qualify for loans. When buying a home there is going to be a loan. There is also going to be an appraisal and probably an inspection and those costs money. Something else worth mentioning is,that your market opens up with buyers, because there is no need to qualify for a loan. Credit score is not an issue, because you are dealing with buyers with cash.
In summary, land investing is a safer investment without having to risk everything. It's also a cheaper route than investing in single family residences.
If you have the right information, then you can enter the arena of land investing safely and extract profits, without going into and make real profits, instead of playing roulette in the single family home investing. - 15246
Houses are sold quite differently from vacant land. Land is not financed with the same high prices and type of interest structure. Land does not have to be financed at all, since the prices are usually a lot less, when compared to homes. No high monthly payments , or high taxes and no paying for financing. No 30 year mortgages either. This allows you to keep more money n your pocket when investing in vacant land.
Once you understand that, land is not heavily financed the same way as homes, then you also understand, that you can spend way less investing in land.You are also more like to encounter sellers, who are more willing to work with you on the price. With singe family homes, there is the existing note, that has to be satisfied, this prevents the seller from being flexible. After all, you want and need a flexible seller to get best prices, you can possibly get.
With Sellers of single family homes, most homes will still have an existing mortgage, unless, it is a really old home, or the owner paid cash or paid it off quickly. No matter how eager the seller of a single family home is, the underlying mortgage still exists, so thats the limitation.
This makes investing in land clear cut winner in my opinion, than investing in homes. Not only is it the winner, but it's an investment without of all of the ongoing expenses.
Another huge advantage land investing has is,that your buyers can pay you cash and don't have to qualify for loans. When buying a home there is going to be a loan. There is also going to be an appraisal and probably an inspection and those costs money. Something else worth mentioning is,that your market opens up with buyers, because there is no need to qualify for a loan. Credit score is not an issue, because you are dealing with buyers with cash.
In summary, land investing is a safer investment without having to risk everything. It's also a cheaper route than investing in single family residences.
If you have the right information, then you can enter the arena of land investing safely and extract profits, without going into and make real profits, instead of playing roulette in the single family home investing. - 15246
About the Author:
Ken Dinkins several sites. Checkout his sites Ken Dinkins and also Ken Dinkins Articles.
