Top five reasons to own pre-developed real estate in a down market
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Many investors are rushing in to swoop up the great deals in real estate with our current state of economic trends. With many foreclosures on the market and more arriving there everyday. However with all of the great deals on the market there are tons of profits to be made.
However the largest profits in history have been made by farmers and land owners and the rules today have not changed just the technology and the location of these hidden profit centers. Land owners have always been the major centers of wealth. Farmers were some of the richest men in history not because of their hard work tilling the soil and planting crops but because of the hidden treasure at their feet.
If you really think about it land holds tons of hidden treasures depending on the area it’s located in. Precious metals, gem stones, oil, rich soil for planting crops and untold treasures of history have all wound up buried in the sand or the ocean. Imagine all of the treasures hidden in the soil at the bottom of the sea. Anyway as we start down the reasons why you can already see the resources and values in the land.
Next we take a look into the top ten reasons why to buy pre developed land.
One: pre-developed land has more profit potential than any form of real estate. Pre developed means just that. It’s the land that has been allocated for future development. This means the research has been done to ensure proper measures have been taken to ensure all resources will be available for the future growth.
Two: pre-developed real estate has the ability to bank profits (land banking for investment), over the holding period you watch out lying communities & cities grow around you.
This is where the profits come from. When you buy pre-developed real estate and the growth happens from the outside influences; this drives up the value of your property due to two main factors. 1) growth drives up value, supply become more limited as development happens.
Three: pre-developed land has the several benefits that no other piece of real estate can offer, the two T’s no trash and no tenants and no maintenance. If you weigh the benefits of owning real estate types this is the best reason for me as an investor. Sure there is no cash flow from the property unless you set up some creative ways of leasing pieces of the property.
Four: pre-developed real estate is the most sound piece of your investment portfolio. No loss of cash flow, you can sit on it for years and not have to worry about whether your investment is wearing out, The longer you hold the real estate the more profitable it becomes for you as an investor.
Five: pre-developed real estate has often been overlooked by investors for it’s lack of cash flow; for most investors cash is king and the allure of quick profits makes pre developed real estate not the diamond in the rough for most investors. This means more potential for you as an investor and more opportunity to compete in a less crowded marketplace.
Sure there are many, many reason to own real estate such as the profits, wealth generation, tax advantages and the ability to create a legacy for your family. Pre-developed real estate is the highest profit margin in the field of investment real estate.
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