5 of the Most Common Land Investing Myths…BUSTED
Have you considered land investing, but had second thoughts? Especially after considering other types of property investments, like rentals or multifamily units?
The truth is that raw land investment is a lot easier than most people think! In this video join Mark Podolsky AKA The Land Geek as he debunks the 5 Most Common Land Investing Myths so you can reconsider if this simple passive investment stream is right for you.
In this video, I want to debunk some of the common land investing myths that a lot of people have brought up as concerns.
For example: Why would I get into land investing as opposed to rental properties or multifamily?” These are things that HGTV or the DIY network talk a lot about.
Myth 1: Land doesn’t cash flow.
There are tons of ways to make land cash flow; from land leases to billboards. You can put a paintball game out there, if you want.
My favorite way–the method I teach and recommend–is owner financing. This means you sell the land on an easy down payment and then make it a car payment.
For example: If I bought a property for $2500 in rural Colorado, I’d sell it by asking for a down payment of $2500 and then I would ask for $249 per month for 84 months at 9% interest (structuring it similar to a car payment). That’s how you can create cash flow similar to a rental home.
Myth 2: No one would buy land in “the middle of nowhere.”
There is a lust for land in the country. I’ve been working in the industry for over 20 years and have done this over 6,000 times.
I have a saying that “there is a pig for every barn.” I have never been stuck with a piece of raw land–even pieces that I’ve messed up by not doing enough due diligence. All that land has sold. You just have to price it right.
Myth 3: You need a lot of money to start land investing.
This myth could be attributed to the fact that we read a lot about billionaires buying productive farm land. This is different.
You don’t need much money to start. I personally started with $3000. I’ve had clients start with as little as $500. Unlike housing, you don’t even need banks or hard-money lenders involved.
Myth 4: There will be environmental issues or concerns.
The truth is that this is hardly ever an issue. If you’re really worried about it, it’s really simple to mitigate. Just go to epa.gov to make sure you’re not buying a superfund site, or a polluted piece of land that requires a long-term response to clean up, which can cost the owner millions of dollars.
We’re avoiding industrial areas and focusing on the sunshine states, like Arizona, New Mexico, Colorado, Florida, Utah, Oregon, and Washington.
Myth 5: You have to buy land local to where you live.
You can buy land anywhere. You can start by sending out offers. When offers are accepted, you conduct due diligence to confirm who owns the property, make sure there have been no breaks in the chain of title, there are no liens, etc.
From there I will put up a Craigslist ad to hire someone local–for around $50–to shoot pictures and video and provide a detailed report on the surrounding area.
My philosophy is that you can always make more money, you can’t make more time. So I can’t tell you the last time I physically stomped on a piece of raw land that I invested in.
Get our free course on how to double your money in 30 days or less at www.thelandgeek.com/wholetailing.
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