Who buys land lots and why?

Question

Just wondering if anybody here buys just lots of land? If so what do you do with them? Just a random curious question because im in las vegas and always see lots of land for sale or vacant and was wondering what kind of investors chase lots.

Neil Goradia · Answer

Mainly developers I would think. We bought 22 acres in Indianapolis and developed a subdivision on it. It is a highly risky and political process that I'd only recommend getting into if you have the right team of experience in place. You can make some decent money doing it but home sales are never a sure thing and it could take a long time to pay off construction loans if homes don't sell as planned. I would not recommend buying land as a speculative investment if you are guessing the land will increase in value for one reason or another.

Jay Hinrichs · Answer

Account Closed  over the last 40 years of doing this  .. the biggest reward with least risk is always farmer selling to developer.. they CASH OUT>. or their kids do  LOL

Jay Hinrichs · Answer

Account Closed  farmers always make the most money selling to developers.. developers hit it right they make good money.. or they get hammered .. I have been on both ends of that spectrum :)

Account Closed · Answer

@Jay Hinrichs  I live on a farm.  Farming is only quaint to people that have not done it.  All of the family farms around here are being sold off.

Account Closed · Answer

@Rito Altamirano   I buy them.  Normally I buy them for an assemblage.  Sometimes I buy them because I can immediately flip them or just because they are below market price.

Remember the following...

1)  It might be years before the lot can be turned into an income producing property.

2)  Land is nowhere near as liquid of an asset as single family homes.

3)  Politics are involved in development.

Unless you have the know how and money to develop the land I would not suggest them as an investment.

Christopher Brainard · Answer

@Rito Altamirano

Developers and Speculators. I agree with Neil Goradia that it is highly risky and I would only recommend this for a seasoned investor. There are many plots of land available in otherwise developed areas in Las Vegas, but most of these are priced beyond reason (thus, why they have remained undeveloped). Never hurts to call or check up on a lead, but if you decide to invest in vacant land, make sure you know what your exit strategy is. Otherwise, its just a tax burden and dead money.

-Christopher

Jessie Huffey · Answer

My husband and I like to buy medium sized plots of land (10-50 acres) in our area if we can get it well below market value. The reason we are moving to land purchases right now (we have done fix and flips in the past) is because homes in our area are overpriced and my husband is a building contractor so we can do development on a small scale ourselves- even if it is just 1 or 2 spec homes. We especially like lots that are made up of more than one parcel or that the county will allow us to divide.

Rito Altamirano · Answer

thanks for the replies everyone. Well main reason i was curious was i found a lead in pahrump for a l single lot of land he recieved after being owed some money. The lot has 2 homes next to it. But thats it. According to his realtor hes asking under market value for it spoke with him direct and hes even asking obo for that. he just wants it off his hands. But i wouldnt know what to do with it. Nor care to own land in pahrump lol

Who buys land lots and why?

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