Everyone invests for a return, but what if you want to invest in land and get a quick return on your investment? Fortunately, there are ways that you can influence your return on investments (ROI) when investing in land. Keep reading to look at these 3 things when analyzing which land will get you the fastest return in Richmond…
Raw land investing is an often overlooked way to invest but this kind of investing provides investors with an amazing way to generate fast ROI if done correctly. If you’re wondering how you can get quick returns on your raw land then apply “the 3 P’s” of fast raw land returns.
Look at these 3 things when analyzing which land will get you the fastest return in Richmond…
The 3 P’s of Fast Land Returns
In land investing in Richmond it’s said that the profit is made when you buy, not when you sell. This means you need to be able to acquire your land investment at a good price. We’d build on this concept to say that if you want to get a fast return, you need to find land at an attractive price but have a plan to be able to sell it at a higher price.
The market can influence your buying and selling prices. Make sure the market can support each of these prices! Avoid the mistake of buying at a low price and thinking that you can sell at any price: do your due diligence to find out what price points the market will support and whether your land has the potential to be in both price points. That leads us to the second P…
Next, look at the potential you have of seeing the returns on your land increase. Land increases in value because it becomes rarer and in greater demand, so what factors make land rarer or in greater demand?
For example, if you buy near a city and the city is expanding rapidly in the direction of your land, the demand will likely increase faster than if you buy land and the city expands in a different direction. Demand by city expansion is not the only type of potential a land has to increase in value quickly, which leads us to the third P…
The best way to see your land increase in value is to buy land from someone who doesn’t understand its value and then sell the land to someone very specific to can understand its value.
For that reason, you need to look at raw land through the eyes of a potential buyer and ask yourself, “Who would this land appeal to?” and then market the land to that group. If your land is near an expanding city then find a developer; if your land is in a beautiful wooded area with a river then perhaps an outdoors person or a hunter might want the land.
Land tends to increase in value but it normally takes time. If you want to speed up the process, look at these 3 things when analyzing which land will get you the fastest return in Richmond.