Investing in land is often overlooked as a way to build holdings in your real estate portfolio, especially by beginning investors who could easily purchase a smaller parcel of undeveloped land at an affordable entry cost. There are many ways investors can profit from land. When you consider all of the possibilities, this real estate sector offers diversity to strengthen your portfolio and earn the highest possible returns on your investment dollar. Investors must be aware of many essential aspects of land purchases and their plans for the land. For example, does the parcel have accessibility by road, utility service connectivity, and no conflicts exist with zoning or local, state or federal laws?
Highly experienced investors with experience in the Hampton Roads real estate market can help you determine the best location for your intended purpose and assess the value of the land. No matter your investment, it’s always suggested that you seek the guidance of someone experienced in that market sector. Unlike residential real estate, where you can easily compare properties, adding and subtracting set values for differences, pricing the land takes unique know-how to help determine value. So read on as we explore five ways you can profit from land in Hampton Roads.
One of the ways you can profit from land in Hampton Roads is by leasing the land for others to use, for example, locations on busier roadways that serve seasonal vendors well, such as those who sell pumpkins, fireworks and the like. Additionally, farmers and ranchers lease land and are responsible for any development and taxes. Because the competition for land isn’t fierce, you can often make lower offers and gain more profit from your investment.
Another way you can profit from land in Hampton Roads is by developing the land into commercial or residential property. Naturally, you’ll need to ensure that the numbers add up to a great return on the investment before delving into the project. Using the land residual technique to determine the value will help you make a sound investment. Often, investors combine land purchases with growth in their business interests and create even higher returns on their investments.
Improve and Flip
Of course, you should concentrate on up-and-coming areas to increase your ROI or return on the investment. For example, subdividing land into smaller lots is a great way to profit from land in Hampton Roads and by going the extra mile to add entitlements, you add even more value. In addition, garnering a low price on the land purchase will help improve returns.
They aren’t making any more land; given laws of supply and demand and historical data, the land will continue to appreciate. So simply sitting back and waiting for the land to increase in value, or holding the property, is another way you can profit from land in Hampton Roads. But, again, this is an effortless way to make passive income that requires little oversight other than paying taxes.
To find out how you can profit from land in Hampton Roads, talk to the professional buyers at SellyourhouseVA.com who can help you explore the multitude of exciting opportunities that land offers. Let the professional buyers at SellyourhouseVA.com help you build a healthy portfolio and explore the diverse investment opportunities offered by investing in land. At SellyourhouseVA.com, you will find seasoned professional investors with experience in every real estate sector who can help you determine the best way to invest in land to help you achieve your goals. And don’t forget to ask your professional investor about our current inventory of the best land available in Hampton Roads. Call SellyourhouseVA.com at (757) 346-1116.