(light cheerful music)
- Hey there, this is Seth from the REtipster blog.
In the next few minutes, I'm gonna hit
a few key reasons why I believe
vacant land is the ultimate real estate investment
and frankly, if you've never bought vacant land
or if you haven't even considered it, you need to,
and I'm going to explain why.
I think a lot of people,
when they hear the words "vacant land",
they just write it off and don't even consider it.
And it's mainly because they hear those words
and they just think, vacant land is boring.
It just sits there and nothing happens.
It doesn't produce income, what's the point?
But I'll tell you right now,
vacant land can produce a TON of cash flow
and a TON of income, if you know what you're doing.
I'm not sure what kind of
experiences you've had in your life,
with things like rental properties,
commercial real estate and other types of buildings
you have to keep up and maintain,
but if you know anything about those types of real estate,
I'm gonna tell you right now,
boring is a GOOD THING.
I love the fact that when I buy land,
it just sits there and NOTHING HAPPENS.
It's awesome! When you buy it,
you don't really have to "do" anything to it.
If you buy a piece of land at the right price,
(and by the right price, I mean a very LOW price),
buyers will come out of the woodwork.
It's just a matter of whether or not you bought it
at the right price to begin with.
Obviously, this is a key component
of any real estate investment
and land is no different.
If you buy it the right way, there's no reason
you can't flip it for a profit without doing anything.
I don't have to deal with any stress,
I don't have any monthly mortgage payments to make,
I don't have to lose sleep at night
wondering whether contractors and tenants
are going to do what they say they're gonna do.
You just buy it, get the deed,
and you can re-sell it.
Another one of the key reasons
why I love buying vacant land properties
is because I don't have to deal with competition.
If you've ever tried to get a smokin' awesome deal
from the MLS, you probably know
it can be really hard.
Competition is NOT a good thing.
It makes your life hard, it makes my life hard...
So if you can cut through that
and just eliminate it altogether, why not do that?
While all these other people are out there
focusing on houses and buildings and things like that,
the people who are buying vacant land
and are really focusing on that niche,
they have the playing field to themselves.
Because there's just not that many people out there
focused on that particular type of property.
Probably the number one reason
why I love vacant land at the end of the day,
is because when you buy it for next to nothing like I do,
and when you sell it with seller financing,
you can make a ton of money,
and you can make it as passive income.
You can buy these properties,
sell them with seller financing,
and they essentially become
kinda like little rental properties,
only with none of the headaches
that rental properties are known for.
In this kind of scenario,
it's your borrower's responsibility
to take care of that property.
These people have a vested interest in the property
because if they don't do this stuff,
and if they don't pay you, they're gonna lose everything.
In their minds they actually have ownership of this.
And these people tend to treat your property
much different than a tenant would
if they were renting it from you.
For obvious reasons this is a great thing
and it takes a lot of the hassle out of your hands,
but the money keeps coming in because the work is done,
and they have to pay it off.
Another one of the hidden blessings in all this,
is that, generally speaking, if your borrower
ever stops making their monthly mortgage payment,
you know, everybody's worst nightmare,
it's actually not that bad of a thing.
And in fact, it can even be a good thing.
The fact of the matter is, you do, in essence,
have a collateral position on this property.
If they ever stop making their payments,
you can repossess the property,
keep all the money that your borrower has paid you to date,
and then re-sell the property all over again.
There's a lot of times when you can have
a really profitable deal on your hands,
and then, once your borrower defaults,
you could even double or triple
what already was a very profitable deal.
So if you can kinda follow what I'm saying here,
when you buy land, when you own it free and clear,
you can sell it with seller financing,
you are in a very, very, very good position,
and it is very hard to get hurt in this process.
A really cool benefit about vacant land
is that there's actually a lot of ways
that you can buy and sell these properties
without ever seeing them in person.
Now this is a little bit different
from houses and rental properties,
things like that, because,
essentially all you're buying and selling here is dirt.
What this means is, there's just far fewer
factors and issues that can go wrong.
Now, do you have to research vacant land?
Absolutely.
There's a lot of things you want to
look into before you buy it.
But the great thing is, you can look into
a lot of these things without
actually going to the property and seeing it in person.
Things like Google Earth, things like AgentPro247,
calling the county courthouse,
calling the county clerk's office,
calling local realtors and getting them involved,
there's a ton of ways to find out
everything you'll ever need to know
without you having to travel out there
and be there in person.
You can do this kind of business from a long ways away.
You don't have to be buying these properties
in your back yard.
Another great benefit about buying vacant land
is that it is extremely inexpensive to own.
Just to give an example of one that I own,
the annual property tax bill for this, is $80.
Okay, I've got another one where the annual tax bill is $36.
And again, all the properties that I buy,
I don't have any mortgages on them
because of the fact that I can get them for so cheap.
When you can buy land for
thousands or even hundreds of dollars,
it's just not that hard to own them free and clear,
which means there's just very little
that you have to worry about
and pay for on an on-going basis.
And yet another reason why it's not a bad idea
to buy vacant land is because
they aren't making any more if it, okay.
Unlike houses, unlike the stock market,
unlike gold and silver and all these other investments,
land is one of the only things out there
where there is a finite amount of it.
Especially if you can buy land in the path of growth,
you could find yourself with an asset
that a lot of people desperately want to get their hands on.
Now, some of this takes a little bit of foresight
in looking for the right things,
but I'll tell you right now, it's really not that hard
to find properties that are in the path of growth,
and that a lot of people are very likely
to want in future years.
Another great thing about land is that it's very hands-off.
There's a lot of scenarios out there
where you can buy a piece of vacant land,
and then lease it out to a third party,
kinda like a rental property with none of the headaches,
and they will pay you just for the use of your dirt.
For example, cell phone towers.
Wind power companies.
During hunting season you can lease your land to hunters.
Farming is one of the most common examples of this.
Obviously, if they're gonna pay you
and if they're gonna do all the work,
and if they're gonna maintain everything,
that sounds like a pretty good deal to me.
I don't know about you, but if someone
offered that to me for my dirt, I would gladly take it.
So as you can see, vacant land investing,
it just makes sense.
These properties are not hard to get,
you can get them for very cheap, very hands-off,
there's very little you have to do,
it's very inexpensive to hold,
it's a finite asset, they aren't making any more of it.
I mean, need I go on?
My hope is that you're starting to understand
why vacant land makes sense and why
it's a awesome no-brainer investment.
Again, a lot of people don't get it.
And at the end of the day I guess it doesn't bother me.
So my hope is that you'll think a little bit more about it.
Because it really, it can make a lot of sense for you
especially if you know how to buy it right,
buy it for the right price and really utilizing it
and start making some passive income from it.
Thanks again for stopping in.
Hopefully this video was helpful to you.
If you got any questions or comments,
please feel free to leave them below.
I'd love to hear your thought on this.
If you think I'm missing something, if you think I'm wrong,
if you've got a different perspective
or if you've done this kind of thing before,
I'd love to hear about it.
Thanks again, I wish you all the success in the world.
Let's stay in touch, okay?
See ya.
(soft cheerful music)