How to start investing in land?

Question

I will be ready to buy a home in the next five years, however, I am trying to decide whether  I should buy a home or a piece of undeveloped land as my first big investment? I have done a little research in land investments but need advice. In my opinion land could be such a great investment as it does not change or move like a home. I just need a strategy of how to go about this... Any ideas for my first purchase? Thanks

Michael Lee · Answer

Hello and welcome to BP!  There are "liberal" people just about everywhere.  I would make talking to the building department about any possible problems that they are aware of.  I am 60 years old and I have lived in Texas all of my life and typically the bigger the town the more problems you will have.  The problem with San Marcos might be that it is a college town and probably has a few loud "liberals" that do not have anything to do but be disruptive.

You also need to talk to an authority at the Chamber of Commerce to see what they know about the present and the future.  The best way to go in this business is to go for what is average or normal for that neighberhood.  Doing anything that is not normal can be difficult.  I knew a lady in Dallas County that wanted to tear down an old delapidated barn and was not allowed to do that and start new development. I wish you the best of luck,

Tyler Sample · Answer

Thanks for the response Will Grabert. Yes, San Marcos is probably more liberal than conservative. To be more specific on my goals, if I want to buy a home I want to buy a duplex or multifamily and rent out the other rooms. But if I keep renting an apartment like I am now and invest in pieces of land (whether it be rural or urban) would I see a faster and greater return than my tenants paying rent each month? For example: Buy a rural piece of land, invest a few thousand into it like a water well or something for livestock, turn around and sell it for 10-20% more than what I paid for. I work with an elderly gentleman right now whom I have been chatting with and he and his wife have been buying and selling property for 25 years and that was an example he gave me. It sounds good but I haven't been around as long as he has and quite frankly I don't know squat yet because I am so young in this business!

Mark Weinstock · Answer

I made a big  mistake of buying some land up in northern Florida few years back

I had some friends that where buying closing and flipping and making bundle of money

I got caught up in the excitement and bought at the wrong time at the height of the bubble maybe about 10yrs ago already I spent my own savings back then and  pissed away about 60k

Now all I can really do is pay the tax bills and lesson to people say don't worry its land it will go back up some day

if anyone has some suggestions on how I can turn things around please chime in

Will G. · Answer

So "land does not change or move like a home" but the government sure does!

How liberal is san marcos? Really. I tried to convert a small commercial building there and was horrified by the building department , especially because the majority of texas still embraces freedom to use your own property. My point here is if your are in a liberal area like california, building a home on your own property is a nightmare, with approvals of 7 different government agencies required in many rural area's. So if you invest in land you better make SURE it is buildable and does not have any natural water or protected gopher rats or bees for that matter as now there is talk of putting bees on the endangered species list which, the way I see it gives the feds scary new authority over use/development of any property where bees might be. So if you are talking about a home for yourself, could you find something with a dilapidated structure you could tear down in the future? Do you want income from a rental? a bit more clarity on your goals will help get better feedback