You might be asking yourself which type of real estate carries the lowest unpredictability in growth yet will still bring the best return on my investment dollar. Land, while not normally seen as an income producer on it’s own, can be a very simple way to build your real estate portfolio. While consuming much less of your time as compared to other investments, land has the potential to earn equal or even greater passive income. We will discuss 5 reasons why you should be investing in vacant land in Richmond.
One reason you may want to consider investing in vacant land in Richmond is the inherent permanent nature of real estate. Unlike stocks, which can virtually disintegrate before your very eyes, land isn’t going anywhere. Additionally, it is well established that real estate gains in value over the long term, even should you decide to do nothing with the property. By merely holding a wisely selected parcel of land over the long term, you can still end up making a tidy profit when it is time to enforce your exit strategy.
By understanding the importance of supply as opposed to demand, given that land is itself of a limited supply, it makes perfect sense to invest in vacant land in Richmond. Location in real estate is an extremely important factor in the value. For this reason, you’ll want to ensure that you purchase in the right location. Be certain to do your homework into local ordinances, zoning, local, state, and federal guidelines as well as any environmental restrictions. In this way, you’ll be certain that there are no problems that could prevent the land from meeting the needs you may have for the property. One creative strategy investors of larger parcels use to quickly increase land value and profit is by subdividing, in essence creating new land to sell.
One of the biggest perks of investing in vacant land in Richmond is the potential to sell the land at a higher price. You can in essence “speed up” building equity in the property by offering to finance buyers. You set the sales price and can sell the land at a higher sales price, because you’re essentially “holding” the property today for the buyers, risking taking a loss should the value rise at a greater rate than you estimate. Additionally, you can earn interest. Should the buyer be unable to purchase the land at the end of your agreed upon term, you’ll keep any deposit and monies earned, as well as the property.
There is a great potential to profit from investing in vacant land in Richmond, by carefully planning your long and short term goals before purchasing the land, you can earn income from several methods. The relative simplicity of holding land requires little to no time on a daily or even weekly basis, land can be a time saver for investors while building their real estate portfolio. Should you decide to purchase land for business purposes, the land will more than pay for any management team and any other costs to oversee the project. Your income from real estate can be as passive as you wish, by having to work with a team to conduct as much of the business on your behalf as you wish. With creativity, there is a myriad of possibilities to earn an income from vacant land.
The benefits of investing in vacant land in Richmond, as with all real estate, depend greatly upon choosing the right location. In addition to meeting any demands you have for earning income, another factor in the value of land is the actual location. Especially imperative is an extensive knowledge of the Richmond real estate market and the areas which will not only hold their value but build steadily in worth over time. Much of this value is based on both the short and long term plans and economic outlook for the area. Through careful analysis of your investment plans and a thorough knowledge of the area, you can zero in on just the right property. One example of location lending high value is the seasonal leasing of land for sales of products such as fireworks, pumpkins, or even Christmas trees. While having the public on your land for this short time period may come with headaches, some investors are able to earn an impressive income from this activity.
Success doesn’t just happen, it must be planned. RVA Home Buyers is the expert in finding the best land opportunities… Working together with us at RVA Home Buyers makes the process easy, let RVA Home Buyers walk you step-by-step through the process. When you know where to buy, investing in vacant land in Richmond offers a high potential for earning passive income. Ready to learn more? Send us a message or call RVA Home Buyers now at (804) 420-8515!