There are a lot of ways to earn money while investing in property. If you are someone who wants to purchase a land that will hold a future property, you need to learn a few strategies in land purchase 101.
What Are The Possibilities Surrounding You After You Have Purchased A Land?
What you can do on a raw piece of land is endless, and it includes building the following; Multi-Family Home, Retail Space, Office Space, Strip Mall, Parking lot, Mixed Retail and Residential Space, Hotel, Hospital, Resort, Farm, etc.
Why Do You Want To Purchase A Land?
Before you purchase a land, you need to know what you want to use the land for. What is your goal of purchasing the land? There are a lot of things to look at when buying a raw piece of land. Let’s talk about some of them.
- Buy And Sell
In this scenario, you’re just flipping the land in order to make a few buck. You perhaps want to sell to the next guy who really needs the land more than you need it, which means you sell the land as is.
- Buy and Hold
In this scenario, you purchase a land, hold onto it with the mindset that the land will appreciate in value. You may still need to pay taxes on the raw land though and do some needed maintenance to keep the land in top shape. This is what happens to raw lands that are being redeveloped.
The investor (which is you) buys a land with the aim of selling it to a developer in the nearest future as soon as the region becomes developed and popular.
- Buy, Develop and Hold
This scenario is far different from the first two. In this case, you are buying a piece or raw land with the mindset of developing it yourself. For instance, you could build several townhouses and rent it out. Secondly, you could erect a strip mall on the property and also rent it out to available tenants.
- Buy, Cultivate and Hold
In this scenario, you’re not looking to erect an edifice on the property and try to rent it out. Instead, you want to rear livestock, grow crops in there or set up a vineyard. You will be making money through the sale of the land’s produce.
- Buy, Develop and Sell
In this scenario, you purchase a land, get it developed and sell it off to the final user. For instance, you purchase a land, build a home on it and sell it to the individual or family that wants to live on the property. In the same light, you could put a vineyard in place an sell it off to the person that will cater for it and manage the vineyard.
- Buy, Develop and Rent
In this case, you may purchase a land, get it developed and then rent it out to anyone interested. For instance, you purchase a land, build a parking lot on it due to the insufficient parking spaces within the region and rent it out.
These are different ways one could smile to the bank after purchasing a land.