Specialist · Los Angeles, CA · Member since 2016 · 2 posts · 0 votes
Hi there BP Commercial Pros,
I am located in Los Angeles area but I have an opportunity to purchase a small (less than an acre) piece of land, outside of Nashville.
The town is growing fast, this piece would be one of two last one available to purchase on main street.
I have heard in the past that land purchase is not a good idea, however, I feel it in my gut if I buy and hold for next couple of year, it can be a good thing.
Aside from obvious "No Rent" collect, I wold love to hear all the stories, good, bad AND ugly.
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
10y
Completely agree with what Devan said. It's not a productive asset since it's not bringing in cash flow. In my opinion it's gambling and not investing.
If you buy it and build on it or do something with it, then that's a different story. I personally wouldn't just buy and hope.
Investor · Nashville, TN · Member since 2015 · 688 posts · 607 votes
10y
@Young K. do not buy land to hold it. You have no cash flow and you are guessing what will happen in the future. If the deal is not good today then do not buy it for what it could be
Las Vegas, NV · Member since 2014 · 732 posts · 137 votes
10y
Young,
I have been in the land bussines for many years. Fist of all you have to buy undervalue way undervalue. Not only do you need to know your entrance stratagy but you exit stratagies there should be more than one. Property needs to be in the path of growth or in it. If you need any help let me know.
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
10y
Completely agree with what Devan said. It's not a productive asset since it's not bringing in cash flow. In my opinion it's gambling and not investing.
If you buy it and build on it or do something with it, then that's a different story. I personally wouldn't just buy and hope.
Investor · Nashville & Chattanooga, TN · Member since 2015 · 182 posts · 138 votes
10y
Agree with Devan and Luka. Make money on the purchase, not the sell of real estate. Purchase with an equity position, create some type of value add and sell at market price. Appreciation is a bonus, not a paycheck. Always have multiple exit strategies. My strategies are (in order): hold and cash flow as a rental, rehab/resell, sell as is to another investor, sell as is at a discount on the MLS or move into it and sell my primary.
Specialist · Los Angeles, CA · Member since 2016 · 2 posts · 0 votes
10y
First, I would like to thank everyone on this post. I am pleasantly surprised that I actually have replies! Josh, Thanks for "Brrr" reminder. I do love that.
My past experiences have been buy, rent and hold which have work well for me so I will stick with that for now, I am not ready to gamble.
So what can one do with 300K? In Los Angeles, it doesn't go very far but outside of California, I see some opportunities specially outside of Nashville. I would love to purchase multi family apartment with onsite management.
The city of Franklin seems to come up, am I too late?
i am a Cali native hailing from the OC and LA. I have been in Nashville 9 years. The market is alive and well (for now) if you know what your looking for ( I am currently building 6 houses and restoring 1). I am happy to help anyway I can. Feel free to message me.
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
10y
@Young K. Franklin is very popular because it has some of the best schools in the entire nation. It's in Williamson county which is the 16th wealthiest county in America. The homes there are largely owner occupied. Most of the rentals are large apartment complexes. At least that's my experience. I've looked at tons of deals in Franklin for rentals and it's very difficult to meet the 1% rule. (Not impossible, just difficult). I think Franklin will always have a strong housing market because of the schools (families want to live there), and because of all the malls/shopping in the area of cool springs.
Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
10y
if its a good location, or expanding area, go for it, just be prepared for the holding costs, depending where it is, if you need to keep the grass/weeds mowed, as well as taxes, and insurance, and preventing people from dumping trash or camping there, it can be a good deal, like anything, know the market, and direction of the market.
Commercial loan officer · San Francisco Bay Area , CA · Member since 2015 · 31 posts · 2 votes
10y
I think the question to ask is how will this land generate income? Do you have another cash flowing asset that you can pull cash from to then build on land? I would hold & hope I've seen people get creamed and still hoping for a miracle. I would go in with a more solid entrance and exit plan.
Investor · Nashville & Chattanooga, TN · Member since 2015 · 182 posts · 138 votes
10y
@Young K. - you are not too late for Franklin. Do some research on TN population growth and labor statistics. Williamson county (Franklin) has the highest projected growth rate in the state by 2025. Followed by Sevier, Meigs, Rutherford and Montgomery (in that order). The deals might be harder to find, but for a buy and hold investment, Franklin is solid in my opinion.