What do you normally think of when you think of real estate investment? Most people think of the HGTV version of real estate investment, the whole “let’s go spend a crazy amount on a house, spend even more money to fix it up, then, sell it and make millions.” This is a nice notion, but unfortunately it does not always work this way, especially with the real estate market being as unstable as it is.
What if you could have a practical real estate investment that always appreciates and almost never depreciates? This investment would also be something you don’t have to constantly maintain it, you don’t have to be professional handyman, you wouldn’t have to deal with tenants, you would almost never have to deal with a banks red tape, and there is a high possibility you could make money on your investment in only a few months after purchase. Who wouldn’t want that type of investment?
Buying property or vacant land without any structures on it is the easiest way to invest your money, forget about it, and just let it grow. Land without structures mean no midnight, “something broke again” phone calls. It means no rushing to make sure everything is perfect before you flip the house. It means less insurance problems, no headaches, and no worrying about figuring out how you are sinking all your money into a money pit that is probably not going to return its investment. Two unfortunate “money pits” in life tend to be boats and houses. This is because houses depreciate with age, just like cars, boats and electronic devices. Land, on the other hand, has historically always appreciated in value over time. So then why do people invest in multiple income properties? Probably because they love working way to hard for little to no return.
The only cost of vacant land is merely the cost of the land itself. You don’t have to “do” anything to it. That being said, you can lease or rent it out to other people who can utilize it. In which case you have created a great source of passive income without spending a dime on structure! Oil companies, natural gas companies, solar companies, wind companies, ranchers, farmers, hunters are just a few examples of who might be interested in utilizing the land! Thousands of companies need land to harness natural resources and are more than happy to pay for it.
So along with the fact that you won’t have to deal with banks when purchasing, you also won’t have to worry about making a quick turnaround (like flipping a house). Another positive to purchasing vacant land without a structure is that you do not have to take care of maintenance, and you won’t have to tender to your tenants. Finally, the easiest part is that don’t have to do anything with the land other than just let it sit there, all while earning a passive income off of it.