If you invest in real estate and you’re wondering how to invest next, have you considered investing in land? Land is an investment with a lot of potential that is often overlooked, and it’s a simple way for someone to broaden their real estate investment portfolio in a another direction. Here are 4 reasons to add land to your investment portfolio in Tennessee.
Many investors don’t even think of investing in land but some investors will ONLY invest in it. If you’re an investor, have you thought about investing in land? There are many reasons why a land investment might make sense for your next real estate purchase.
Here Are 4 Reasons To Add Land To Your Investment Portfolio In Tennessee…
Reason #1. Diversify From Structures
It’s common knowledge that diversifying your portfolio is a good thing but when you invest in real estate, how do you do that? One way to diversify is to invest in raw land instead of land with a structure. Land with structures (whether residential or commercial) can be a lot of work and generally have a high cost just to maintain them. But land without any structures is much simpler, easier, and cheaper to maintain – at worst, you may only need to mow the lawn and that’s it! We’re not saying it is bad to invest in real estate with structures, but it’s nice to have an investment where the structure isn’t a concern or burden.
Reason #2. Long Term Play
Investing in land can be a long term play, especially if you buy in a rural area. Some investors will buy empty plots of land near a city and then wait for the city to expand out toward their property. It might take a few years but as the city grows, a well-chosen plot of land could be in the path of development. Before you know it, the city has grown up around that plot of land and it’s value has increased significantly and now it is worth so much more.
Reason #3. Quick Flips
Land can also be an ideal investment because it allows you to potentially flip it quickly. You can buy land very cheaply, make a few minor improvements, and flip it. The profit won’t make you rich overnight but if you do this right, you can make a decent profit. A good example might be when you purchase an infill lot that has been neglected and is overgrown with trees and bushes. You might buy it, clear the land, and sell it for a small profit to someone who wants to develop the land.
Reason #4. Multiple Exit Strategies
Raw land investments have multiple exit strategies. Consider the following options: you can keep it for yourself and enjoy the land for recreation (strategy #1) before deciding to sell the land the way it is (strategy #2), or subdivide the land and sell it in multiple parcels (strategy #3), or even start building on the land yourself to sell (strategy #4) or rent (strategy #5). There are so many ways to make money from investing in land especially if you can think outside the box.
Summary
Land investments are a compelling way to invest. If you’re looking at your next investment, these are 4 reasons to add land to your investment portfolio in Tennessee.
Want to check out what land might be available to acquire in Tennessee? We can help with that. We have a list of land investment properties that we’ll share with you. Just let us know that you want to see the list by calling (855) 802-9494 or by clicking here to fill out the form.