This question is tricky to answer, as you can find a goldmine in a hidden county and you may scout a hot county and get no deals. There are a lot of factors that go into this question, where is the best place to invest in land? We will address the things to look for when it comes to the best places to invest in land, and also some things to avoid when looking at investment properties.
Hot Vs Cold Markets
You want to be on the fine line between a hot market and a cold market.
A cold market would not be ideal as you may be able to acquire a deal, but you may then have to sit with that deal for a long time if no one wants to purchase land in that area. You could price beneath market value, but that would eat into profit margins.
Hot markets would be on the other hand where you may be able to sell a property fast if you acquire one, key words there are “if you acquire one”.
A hot market will often be very difficult to acquire deals in. This is because many people are trying to buy and sell there, and if you are coming in with an offer below market value it will very likely be discarded as there is a bidding war above market value.
There is a fine line between a hot and a cold market, and that is exactly where we want to be. We want our offers below market value to be taken seriously, but also not sacrifice the quality of our deal and trade time on the market. A good example of a hot market right now at the time of this writing is most areas in Florida & Tennessee. A good example of a cold market is impoverished areas where land is too cheap.
Understand Your Investment
What areas of the country do you likely understand the best? Probably where you live! It is recommended when you are getting started to look in areas around where you currently live. You will be able to have a better understanding of the area, comparable prices, and time on the market.
Start where you know best, you can always branch out afterward. You may also already know someone who knows someone that wants to sell their land!
The Midwest
We want to give you something applicable to take out of this blog post, and the area of the country we have the best experience with investing in land is the midwest.
This is because of the natural attributes of the land in this region, and more so the lack of negative attributes. The midwest lacks swamps, cold weather, etc.
This limits the number of negative attributes you can have on your land, and also where we just found to be the most profitable as more people want to move off of the coast and buy their rural land in the Great Migration.
Avoiding areas that have negative attributes will increase your chances of finding a great property exponentially.
Some states in specific you can look into are Texas, Oklahoma, Georgia, Kentucky, Ohio, etc.
Avoiding Legality Issues
You can buy land anywhere, but some states have issues with mail solicitation or online solicitation. This is not something that can be avoided and is our most profitable and most used avenue of acquiring land. If you are going to use these methods to acquire properties or find potential deals, please do some research and avoid the areas where you cannot employ these tactics.
Just Get Started!
The best place to invest in land is anywhere. Just getting started is the largest hurdle for most people and many people will consider investing in land only to get stopped at this step.
You learning the lessons of purchasing, listing, and the entire process of land is incredibly valuable. Taking your first step is the best thing to do if you are interested in land flipping.
Curious to learn more? Book a free 15-minute consultation with Ron & Dan to answer any questions you have about the industry. Want to just learn more about Real Estate? Join our exclusive online community that has hundreds of successful and aspiring real estate investors.