Buying and selling land isn’t always the first thing people think of when talking about real estate investments. However, the right piece of land can provide tremendous profit when purchased with strategy and forethought. Below, we will discuss some ways you can profit from buying land in Richmond!
Buying and selling land in Richmond can be a simple and lucrative method of real estate investment. It’s a great way to start a portfolio because of its relatively low acquisition costs. In our latest post, we will explore more about how to find the right properties and how to determine just how profitable they can be.
Highest And Best Use
When buying land, you’ll need to determine how you’ll be able to generate the most profit from it. Should you buy low and quickly sell to someone who is eager to develop the land themselves? Should you develop the property instead, either renting it out for the long-term gain or reselling it for a substantial profit? You could hold on to the land while it appreciates, selling down the road when it is in high demand. Or you could even consider an alternative option such as leasing the land out for parking, events, or even farming. There are many ways you can make a profit from land in Richmond, and we can help you determine what will be right for the property you own.
Determine If Your Should Sell Or Hold
Some investors get into real estate with the goal of being a landlord to lots of income-producing properties. Other investors want to buy low and sell for a profit. Each investment style is profitable, but may not always be best served by purchasing the same properties. Knowing what you are after ahead of time will help you to determine which piece of land you should buy. If you aren’t sure about a particular property, there are a few factors to help you decide.
- Future development – Make sure you stay abreast of any and all development plans in the area. New development can have huge impacts on the value of land.
- Local real estate trends – Take a look at what land has done in your area over time. Does the value go up and down? Does it change depending on the time of year?
- Ownership costs – Holing costs for land are typically pretty low. If property taxes are quickly going up, that means the value of your land has too. Just make sure the profits you’ll eventually make are more than what you are spending to own it.
- Profit potential – How much could the property potentially bring you in profits? It may not bring in anything now, but with the right development, the profits can be limitless!
- Development costs – If you want to fix up or modify the property, what will it cost? Be sure to cover all of the often overlooked costs for things like permits, etc.
Of course, anything keeping you from holding the property or building on it yourself will likely be a factor for potential buyers too. If there are building restrictions, a lack of utilities, or other property attributes that may deter buyers, it is important to be upfront and market to the people who won’t see it as an issue.
Finding The Right Properties
Before you begin looking at potential investment properties, you’ll want to have your criteria in place. Know what you can spend, what you need to make, your geographical preferences, desired home size, and amount of renovations you are willing to take on. Make sure you understand the potential future plans for the area and how they will affect property values.
One of the best ways to find properties, especially as a new investor, is to work with a pro. The team at RedBrick Properties buys and sells land in the Richmond area and can help you create profits of your own! Utilize our insight and local experience to help you build a profitable land portfolio.