Vacant land investments are wonderful to secure and watch increase in value over time. The land is virtually maintenance-free, so there’s no pressure to fix-and-flip it fast. You’re also free to develop the land however you see fit. It’s a great situation to be in as a real estate or property investor in Colorado — especially with this booming economy!
In this post, we’ll share the top reasons why you need to be investing in vacant land right now. One of the biggest reasons is the exponential growth the Denver Metro Area has seen over the last decade, and it doesn’t look to be slowing down anytime soon. As of this post, Denver is still an option for Amazon’s second headquarters, which means even more growth for the entire state if it’s chosen.
Do you need a vacant land loan? Choose us as your hard money lender in Colorado to secure capital for your investments! Otherwise, continue reading to learn more about why land is such a great investment right now.
Seven Reasons To Invest In Land Right Now
Long-term investment with minimal maintenance
You need to ask at least one question before purchasing vacant land: “Is the property suitable for either commercial or residential development?” If the answer to this question is yes, you are on your way to successfully investing in Colorado land. Although there are an abundance of other questions to consider, this is the only one you need to answer before you move forward with a hard money loan for the land, the construction, or pursue a bridge loan.
Vacant land requires virtually no attention
A vacant land investment is hands-off when it comes to maintenance and upkeep. Instead of dealing with difficult tenants, clogged toilets, or a house fire, you can invest in vacant land and let it sit. Unless you want to start developing it immediately, it’s a long term investment that you can flip later for a healthy profit.
Vacant landowners are always trying to sell
When someone doesn’t live in or have tenants in their investment, there’s a higher chance the investor is always trying to sell their property — sometimes for even less than market value. Some investors don’t understand the long-term value of vacant land. As cities expand and the populace needs land to build homes, you can offer the solution to their problem at a premium price.
Vacant land investors have little to no competition
Real estate and property investors focus primarily on investing in assets they can turn into a profit, which makes sense because an investment property turning a profit is worth more than a vacant piece of land sitting for years before you see a return on the investment. While this is true, the little competition for vacant land allows for more aggressive tactics when purchasing and flipping investments.
Investors have all the control
When you invest in vacant land, you hold all control. The primary burden for real estate and property investors is that they answer to someone else until they deliver on their propositions. Vacant land investments allow for the investors to wait, develop, or sell the land as they see fit.
Research, purchase, and sell vacant land without visiting it
Once you gain enough experience, you can find, purchase, and sell vacant land without ever physically visiting it. This cuts cost in both time and money. It also allows you to flip land or keep it for a long-term investment that you can tap into at the right time. Vacant land can be used as supplemental investment income, too. Parcels of land are everywhere, and if you can invest from the comfort of your home or office, it makes the process so much easier.
Vacant land is an inexpensive long term investment
Land is inexpensive when acquired as a long-term investment. If you purchase the right parcels of land and wait to resell them, you can make a healthy profit — all you have to do is wait. Consider the cost of a property investment in time and money. It probably brings in money month-to-month, but you have to also deal with tenants and their needs. Vacant land, on the other hand, can sit for a decade and net you a nice return on investment.
It can be tough to secure capital through traditional financing in time to win a bid war for an investment. Fortunately, there’s another way to secure capital: a hard money loan. At TABS, we work with investors in the Denver Metro Area, as well as the rest of the state, to offer vacant land loans. Ready to invest in vacant land? Give us a call today!