Gotta figure out how folks who don’t know each other, live thousands of miles apart, but come up with the same set of circumstances — all call me in the same week or so. It happens more than you’d suspect, and I’m beginning to suspect conspiracy. 
Anywho, it’s been the whole free ‘n clear land thing — four times — since last week Tuesday. Go figure.
Land unencumbered by debt is usually looked upon as at least neutral, if not downright positively, but when you put it on the market it’s more than a tad irritating when the only response is the sound of crickets.
The value of land is incredibly sensitive to the use for which it’s slotted by the local powers that be. Zoned for a buncha homes is way mo betta than zoned for a lonely little duplex. Plus, most of the investing public simply couldn’t care less about building and developing and the headaches accompanying said activities. This, as you might imagine, being the well read person you are, is probably truer today than in boom times. (Is that Captain Obvious waving at us?)
No breakthrough advice here on this one — but a few things to remember.
1. When land is aggressively marketed and isn’t even the recipient of insulting offers — either it’s overpriced, or it’s overpriced. It’s up to you to figure out which.
2. The price of land in relatively densely populated regions is merely a part of the bigger equation — the one in which a decent profit better be part of the answer.
3. Deal with the fact that you may have paid too much, or your timing could’ve been off, or both. That isn’t to say it wasn’t worth it at that time,
4. If the market at the time you wish to sell isn’t either A) at least slightly heated or B) at minimum somewhat speculative, your task will by definition be more difficult.
So what are just a few of the options on your menu?
Or you can wait it out ’till the winds of change begin to blow in your favor. Buying land when you’re not an experienced builder and/or developer, or not partnered with one, almost never has a happy ending. For every fun land story I hear, there are several making me wince with empathy. Empathy you say? Yep — learned my land lesson almost 30 years ago.
Sorry, there’s no magic dust solution to make slow moving land go away. Guaranteed negative cash flow real estate investments tend to irritate, not attract — know what I mean, Verne?
Sometimes I can help though, so call me if this describes you at this point. But remember, there’s really no magic door leading to miracle land sales. The demand is usually too sparse, and the folks who can make things happen know who’s in the driver’s seat — and it’s probably not the guy lookin’ back at ya in the mirror.
Call me to chat. 619 889-7100 or email me. Have a good one.
Related posts:
- Everything’s Free & Clear — Rentals Included — Yet Still Taking Home 25-35% of What’s Easily Attainable
- Today I Had my Eleventeenth Call Of The Week About Land — Let’s Take A Look
- Cashing In By Selling For Less — Being Dumb Like A Fox
- Selling Your San Diego Units? What To Do First? Trading Nickels For Dollars
- Real Estate Investing in Boise: More from Opie-Land
About BawldGuy
Not really directly related but sorta I guess…
I have a massive hill as a back yard that is a pain to mow but allows a decent view to a newly planted (thank you fellow tax payers) water garden at the bottom with lots of local flora, etc.
I plan to rent/sell the home over the next 5-10 years or so but want to lessen the effect my mountain has on potential first time home buyers with little kiddies like I was two years ago.
It didn’t bother me that much because we aren’t the ‘active’ family and don’t use our yard that much anyway.
Besides the obvious (make at least a good portion flat with railroad ties, retaining wall, etc.) I thought of building a large lower level deck (as I have a walkout downstairs (split-foyer) and an upper deck off my kitchen.
Is there another way I could make this a positive thing instead of a negative thing besides these two options to make this land more appealing when the time comes?
Readers? Feel free to share you wisdom and experience to help Josh out.
Just a thought, but depending on zoning, turn it into a working farm split – there is an official term and I am too lazy to look it up behind this quickly just to sound smart. But raise a barn, use timber from the lot to build a cabin, and hire a person to work there/live there and raise vegetables, bovines, chicken, whatever. Go green with it and make more off the stuff you produce. Yaks could be a good push and the next big thing. Also, sometimes co-ops for gardeners could be a good idea. You pitch in the land and figure out a way to profit as a co-op of sorts. I am sure with their being a farm in place, a tax write off could make sense too!