If you’re a real estate investor and you’re wondering what your next investment should be, have you considered investing in land? It’s an often-overlooked investment with a lot of potential, and it’s a simple way for someone to extend their real estate investing portfolio in a different direction. Here are 4 reasons to add land for sale in North Port FL to your investment portfolio.
From the video:
Some investors will ONLY invest in land, yet many investors don’t even think of it. If you’re an investor, have you considered investing in land? There are many reasons why a land investment might make sense for your next acquisition.
Here Are 4 Reasons To Add Land for Sale in North Port FL To Your Investment Portfolio
Reason #1. Diversify From Structures
We all know that diversification in your portfolio is a good thing but when you invest in real estate, how do you diversify? One way is to invest in raw land instead of land with a structure.
Structures are things like houses, mobile homes, offices, plazas, or even something like billboards (which can still have electricity and maintenance costs).
Land with structures (whether residential or commercial) can be a lot of work and have a high cost just to maintain. But land without any structures is much easier and cheaper to maintain.
Especially land for sale in North Port Florida – in most cases here, you don’t even need to mow the lawn! North Port is a great area for investing because most of it has already been split up into potential subdivisions. A lot of these subdivisions have roads and power lines, and there are a lot of people living here!
The current population of North Port is around 75,000 (growing at over 3% a year), and it’s surrounded by other popular cities like Port Charlotte and Punta Gorda. In fact, in 2020, North Port was named the top growth city in the US by U-Haul. This means that there were much more U-Haul trucks moving people into the city rather than out of it.
People love North Port because it’s central to bigger cities like Sarasota and Fort Myers, it has a relaxed atmosphere, lower property taxes, and it’s got close access to the Gulf Coast beaches.
We’re not saying that you shouldn’t invest in real estate with structures, but it’s nice to have an investment where the structure isn’t a worry. And in this kind of environment, it’s nice to know that vacant land in a city has value and growth potential. This brings us to reason #2…
Reason #2. Long Term Play
Investing in land can be a long-term play, especially if you buy outside of a city. Some investors will buy empty plots of land near a city and then wait. 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 now worth so much more.
This is definitely valid in North Port. A lot of the property for sale in North Port is residential, found in subdivisions and areas people are already living.
So we already know that North Port is one of the top growing cities in the US, and more people are moving into it than out of it each year.
This means that people love the area, and the word is traveling fast. Buying a couple of vacant residential lots in North Port could be a great long-term play for you because there seems to be continuous and compounding growth in the area.
Reason #3. Quick Flips
Land can also be an ideal investment because it provides the potential for quick flips. You can acquire land very cheaply, make a few small improvements, and flip it. You don’t need to make improvements to the property. If you wanted to, some improvement ideas would be:
- having it surveyed
- putting up a fence around the property perimeter
- getting a perc test
Another good example might be when you acquire an infill lot that 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.
The profit won’t be huge but if you do this right, you can make decent money. Honestly, in a hot market like North Port, where the annual growth rate is closet o 3% a year, you probably don’t even need to make any improvements to the property if a quick flip is what you’re after.
Sure, it’ll make it more desirable and help you stand out from a marketing perspective, but in an environment like that, it’s definitely not a requirement.
Reason #4. Multiple Exit Strategies
Raw land investments have multiple exit strategies:
- Strategy #1: you can keep it for yourself and enjoy the land recreationally before deciding what to do next
- Strategy #2: you could sell the land the way it is
- Strategy #3: subdivide the land and sell it in pieces
- Strategy #4: start building on the land yourself to sell
- Strategy #5: rent it out
There are so many ways to make money from investing in land.
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 North Port Florida.
Want to check out what land might be available to acquire in North Port? We can help with that.
We have a list of land investment properties that we’ll share with you every week. Just let us know that you want to see the list by calling (313) 349-0434 or by clicking here to fill out the form.
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