In the diversity department for real estate investors, land offers a great variety, and you’re likely to find a way to incorporate your life passions and investments. But, of course, once you’ve found your investment property, you must pay the right price to realize the best return on the investment. You’ll need to determine the path you want to take with your investment. While we can’t cover all the possibilities that vacant land offers in this article, we can explore an overview of five ways to profit from buying vacant land in Florida.
Once you’ve decided on your plans for the land, there are ways to get a general idea of the price you should be paying. Unlike developed properties, with many other similar listings to compare to, the current market value of land is often difficult to pinpoint precisely. When there’s relatively similar properties that have recently sold, this can go a long way towards guiding you to the correct number. Before you jump in, perform due diligence and consider the basics, like access and utilities, and that your intended use won’t be the cause of any zoning issues.
Hold
Due to the limited supply of land and the increase in demand as the population increases, land value can increase dramatically over time. For this reason, many investors buy and hold with a long-term outlook to profit from selling vacant land in Florida. One of the most hands-off real estate investments out there. Other than paying taxes, having someone manage the land holdings in your portfolio on your behalf can even be a straightforward process. There is very little to do when you own raw land, though some parcels you must maintain and mow regularly, depending upon the zoning.
Improve and Flip Vacant Land
Land purchased in the right location at a great price for flipping has the potential to offer a great return on investment (ROI). You could do the footwork to add entitlements, which adds value to the land. Subdividing a larger plot into smaller lots is another way to increase the overall value of your investment. In addition, offering to seller finance the land can garner you an even higher price from a buyer who doesn’t have the funds to buy the property outright, with easy terms and a low-interest rate.
Develop
If your goals are to develop raw land and change the zoning into a commercial or residential property to profit from land in the Sunshine state, refer to the land residual technique to determine the value. The bottom line is, once you’ve calculated the costs to complete the development, the numbers must add up in your favor. Because there isn’t fierce competition for land, you might come in with an offer lower than your determined value, raising your bid only if the seller counters; the better the deal, the better the profit.
Lease
Another way to remain passive yet profit when buying vacant land in Florida is to lease the land to another for use. For example, owning a lot on a well-traveled main highway may offer the opportunity to lease to seasonal retailers, such as temporary pumpkin patches, Christmas trees, or fireworks stands. In addition, farmers and ranchers often lease land and are responsible for development and taxes.
Global Abundance LLC
Working with Global Abundance LLC is the best way to maximize profits when buying vacant land in Florida. You can count on the experts at Global Abundance LLC to help you find the property that aligns with your investment goals. And, Global Abundance LLC has a steady inventory of the best land available on the market in the state of Florida to help you get started now. Contact Global Abundance LLC at (800) 953-2124 today!