There’s 4 reasons to add land to your investment portfolio in Pensacola. If you’re a real estate investor and you’re wondering what your next investment should be, have you considered investing in land? It’s an often-overlooked investment with a lot of potential, and it’s a simple way for someone to extend their real estate investing portfolio in a different direction. Here are 4 reasons to add land to your investment portfolio in Pensacola.
Some investors will ONLY invest in land, yet many investors don’t even think of it. If you’re an investor, have you considered investing in land? There are many reasons why a land investment might make sense for your next acquisition.
The reason why a lot of real estate investors don’t invest in land, because they’re not familiar with investing in land.
The most common real estate investments are house flipping and rental. Whether in a single family residential or multi units. Or even apartments.
Frankly, the other reason why real estate investors don’t consider investing in land, because it’s quite boring. There’s not much actions in investing in lands. What I mean about that. There’s not changing to the status quo. Unlike flipping houses or increasing your real estate portfolio. There’s some actions in doing that. which is change!
But, if I said boring, it doesn’t mean that you won’t be making tons of money investing in land. Sometimes the money in the things we don’t like. Just imagine all the things you don’t like and others are getting rich out of. I bet you have few things you can think about right now.
Here Are 4 Reasons To Add Land To Your Investment Portfolio In Pensacola…
Reason #1. Diversify From Structures
We all know that diversification in your portfolio is a good thing but when you invest in real estate, how do you diversify?
One way is to invest in raw land instead of land with a structure. Land with structures (whether residential or commercial) can be a lot of work and have a high cost just to maintain. But land without any structures is much easier and cheaper to maintain.
You may only need to mow the lawn and that’s it! We’re not saying that you shouldn’t invest in real estate with structures, but it’s nice to have an investment where the structure isn’t a worry.
This one of the pros investing in lands. The cost is low compare to a land with dwelling. Whether taxes, insurance, maintenance. etc…
Reason #2. Long Term Play
Investing in land can be a long term play, especially if you buy outside of a city. Some investors will buy empty plots of land near a city and then wait. It might take a few years but as the city grows, a well-chosen plot of land could be in the path of development. Before you know it, the city has grown up around that plot of land and it’s now worth so much more.
Reason #3. Quick Flips
Land can also be an ideal investment because it provides the potential for quick flips. You can acquire land very cheaply, make a few small improvements, and flip it. The profit won’t be huge but if you do this right, you can make decent money.
A good example might be when you acquire an infill lot that is overgrown with trees and bushes. You might buy it, clear the land, and sell it for a small profit to someone who wants to develop the land.
But this is not the case all the times. If we’re talking about a small land. That would be the case with a small profit. on the other hand. if you buy acres of land. And you know there’s a developments coming near by. And you bought this land for a good deal. You could make 6 figure profit from one deal!
Reason #4. Multiple Exit Strategies
Raw land investments have multiple exit strategies: you can keep it for yourself and enjoy the land recreationally.
(strategy #1) before deciding what to do next: you could sell the land the way it is.
(strategy #2), or subdivide the land and sell it in pieces.
(strategy #3), or even start building on the land yourself to sell.
(strategy #4) or rent.
(strategy #5). There are so many ways to make money from investing in land, like having a farm land.
Summary
Land investments are a compelling way to invest. If you’re looking at your next investment, these are 4 reasons to add land to your investment portfolio in Pensacola.
investing in lands can be a little boring without much actions to take like flipping houses, or increasing your real estate portfolio. But the good thing about investing in lands it has a low maintenance cost. Also you could make a lot of money without doing a lot of work like you do in land with dwelling on it.
Want to check out what land might be available to acquire in Pensacola? We can help with that. At EliTrust Real Estate Investments LLC. We have a list of land investment properties that we’ll share with you. Just let us know that you want to see the list by calling 850-861-1326 or by clicking here to fill out the form.