Everyone invests for a return, but what if you want to invest in land and get a quick return on your investment? Fortunately, there are ways that you can influence your return on investments (ROI) when investing in land. Keep reading to look at these 3 things when analyzing which Punta Gorda land for sale will get you the fastest return…
From the video:
Raw land investing is an often overlooked way to invest but this kind of investing provides investors with an amazing way to generate fast ROI if done correctly. ROI, or return on investment, is a financial metric used to evaluate the performance of an investment. It’s the return of the investment divided by the cost of the investment.
ROI, or return on investment, is a financial metric used to evaluate the performance of an investment. It’s the return of the investment divided by the cost of the investment.
If you’re wondering how you can get quick returns on your raw land then apply “the 3 P’s” of fast raw land returns.
Look at these 3 things when analyzing which Punta Gorda land for sale will get you the fastest return…
The 3 P’s of Fast Land Returns
Price.
When investing in Punta Gorda land for sale it’s said that the profit is made when you buy, not when you sell. This means you need to be able to acquire your land investment at a good price. We’d build on this concept to say that if you want to get a fast return, you need to find land at an attractive purchase price but have a plan to be able to sell it at a higher price.
Keep in mind that you don’t need to worry about selling your property immediately for a higher price. As long as you believe the price will increase in the future, you can use that to evaluate when you think you may want to sell.
For example, the coronavirus pandemic saw a real estate boom in a ton of different markets across the US, and we’re still experiencing the highs of that right now.
This has helped a ton of people who were holding land in smaller towns and cities, away from the big metropolis, because that is where people from those metropolises have been moving to.
In the last year, Punta Gorda saw 76% more people moving into the city rather than out of it. These people left big areas like Miami or Tampa, or from out of state to search for a more affordable and less crowded life. Of course, no one could predict how a pandemic would have affected real estate, but if you owned Punta Gorda property before the pandemic hit, you could’ve had the chance to sell at a really great price.
The market can influence your buying and selling prices. Make sure the market can support each of these prices! Avoid the mistake of buying at a low price and thinking that you can sell at any price: do your due diligence to find out what price points the market will support and whether your land has the potential to be in both price points.
If you need help with figuring out Punta Gorda property for sale due diligence, we have a Florida land buying checklist that you can get a free copy of. Click here to get it.
That leads us to the second P…
Potential.
Next, look at the potential you have of seeing the returns on your land increase. Land increases in value partly because it becomes rarer and in greater demand, so what factors make land rarer or in greater demand?
For example, if you buy near a city and the city is expanding rapidly in the direction of your land, the demand will likely increase faster than if you buy land and the city expands in a different direction.
Demand by city expansion is not the only type of potential a land has to increase in value quickly, which leads us to the third P…
Prospects.
The best way to see your property increase in value is to buy land from someone who doesn’t appreciate or respect its value and then sell the land to someone else very specific who does understand its value.
For that reason, you need to look at raw land through the eyes of a potential buyer and ask yourself, “Who would this land appeal to?” and then market the land to that group.
If your land is near an expanding city then find a developer; if your land is in a beautiful wooded area with a river then perhaps an outdoors person or a hunter might want the land; if your land is in a nice subdivision then find a custom builder.
A lot of the land for sale in Punta Gorda is going to be for residential purposes. So you can try marketing it to retirees, families who want to move, and builders and contractors.
Summary
Land tends to increase in value but it normally takes time. If you want to speed up the process, you can look at these 3 things when analyzing which Punta Gorda land for sale will get you the fastest return.
Looking for land that you can invest in for rapid ROI? Click here and enter your information in the form or call us at (313) 349-0434 to access our inventory of available land investments. We’re always adding more!
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