Why Invest in Land for Retirement? Part 2
Back in April of this year, I wrote Part 1 of a blog article about investing in land and farms for retirement. Some of my former real estate investor friends thought I had lost my mind to suggest you invest in land. “Ron,” they said, “don’t you know land doesn’t produce income? It is boring as nothing happens. It just sits there.” Yes, it just sits there and grows in value with very low maintenance.
In my initial real estate investing career, I was always told to look for vacant houses with absentee owners and you will find motivated sellers and good deals. Well… with vacant land you can find absentee owners who are motivated and get some good deals at the same time. Since the land is not their primary residence and since most of these land owners don’t live near the property anymore, you will find them as motivated sellers. Some have inherited the property and are anxious to sell for cash.
I don’t know about you, but I get tired of trying to buy property for my clients where there is so much competition in residential housing and commercial property. If you can find the right deal with land, there is little or no competition.
You say you don’t have the money to invest in land? I bet you have a mortgage though. I have some friends that sold their home and cut their outlay (mortgage payment) almost in half by renting and investing the difference in land. In some cases, we were even able to find motivated seller’s that were willing to do owner financing below bank rates, keeping in mind that some banks will not even lend on vacant property.
How many residential or commercial sellers of real estate are willing to do this, viz., seller financing? Will all land owners do seller financing? No, but there are more than you think.
When I bought my first residential real estate investment many years ago, I had a mortgage payment, utility bill, property insurance, and taxes to pay until I could find a lease-to-own buyer to cover these expenses and the cost of fixing up the property to lease out.
Well… I have had enough of dealing with tenants, toilets, bugs, mold, lawn care, leaking roofs, bursting pipes, broken furnaces, and the hundreds of other issues that come with owning residential real estate? Vacant land doesn't involve any of those things. Once you buy it… it sits there, it behaves itself, and nothing happens.
As a former financial planner, I told my clients that stocks, bonds, mutual funds and 401(k)s all make sense in certain scenarios as retirement vehicles, BUT, so does land. Holding property for the long term can be more profitable than those retirement plans mentioned above.
You don’t need to be a real estate expert before you start investing in land. There is only one question you should ask before investing in land: “Is the property suitable for building?”
Are you ready to start thinking long term for your retirement investment or perhaps you are ready to buy and make a move now? If so, let us help you in locating the property of your choice. Call us at 252-257-4822 or visit our website at www.cansellnow.com . They just don't make land anymore.