I am looking at starting to investing in vacant land. My thought is to start in tax deed states near high growth areas and targeting municipalities or builders in the area since those seem like the largest buyers. I am trying to research all the costs associated with the purchase.
I am looking to make offers on properties behind on taxes and take off the tax burden from the current owner. Besides the up front cost of the offered purchase price, title insurance, the tax bill, and annual property taxes, what other potentials costs should I be aware of (also mention any negatives to be aware of).
Thanks in advance.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
Municipalities will Not be common buyers for vacant land....not sure how you came to that conclusion.
The vast majority of vacant land you can buy this way will have No value to a builder.....there is a reason people so often let these properties go to tax auction and it would be very difficult for you to determines the paths of growth and what would be desirable to a builder/developer.
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
we do a lot of infill building.. this only works in HIGHLY desirable areas @Wayne Brooks as Wayne states not sure were your thinking the value play is here.
now there are plenty of folks that buy cheapo lots in FLA like Lehigh acres then sell for a few grand more on contracts those are the land flipping guru's you see that's what they teach.. and there are millions upon millions of lots available for this type of activity generally in FLA and West Texas AZ CA and other areas that had massive land speculation booms in the turn of the century.. think Lancaster Palmdale in CA there are million plus platted lots there that get traded around at tax sales every year.
to find land with value to builders you need infill in established areas.. close to down towns.. in areas that are regentrifying .. lots that have shadow plats beneath them. or you can split using a lot confirmation technique ( common in Portland) you need to work areas of Scarcity .. to make any money at this unless your a very large vertically integrated reseller of recreational land and can carry all your own paper.. there are a handful of these companies in the US>.