Real Estate Investing – Buying Land

Real estate can be considered an art form and it can take a long time to master the art of investing. The key for any new RE investor that is just starting out is to just focus on one area at a time. Let’s discuss that different possibilities that are available to you.

Buying Land – While this method is probably not the most glamorous, it is definitely profitable. Historically, land has appreciated in value each and every year. The key is to buy at a good price and be able to hold on to it for several years. Many people have accumulated millions of dollars using this method. However, you must know the market and where it is headed.

If you thing that buying raw land is a good option for you, you have several exit strategies. One is to develop the land. While this will incur other costs, the rewards will also be greater. A couple of good development deals and you shouldn’t have to worry about money any more.

Another possibility to selling raw land is owner financing. This method is becoming even more popular today with the banks tightening their standards for lending money. With this method, you are actually acting as the bank, and in return, you will be getting a bigger return on your investment.

Buying raw land is probably the safest way to buy real estate but it should be noted that this is a long term strategy. Don’t think that you will become rich overnight because you won’t. Think long term in your investment strategy and you will not be disappointed.