In 1803, Thomas Jefferson purchased over 800,000 square miles of land from France for over 15 million dollars. In what would become the largest land deal in American history, the Louisiana Purchase more than doubled the size of the nation.
While parts of this land were no doubt developed, or at least occupied, it was simultaneously the largest raw land deal in the country’s history. At the peak of manifest destiny, this meant everything to early settlers. While times have changed dramatically, the amount of land available to Americans hasn’t changed. Raw land continues to be a valuable asset to those who understand its worth.
What Is Considered Raw Land?
Raw or undeveloped land is a property in its natural state. It contains no structures, foundations, crops, or livestock.
What Is The Value Of Raw Land?
As a long-term investment, purchasing raw land can be tricky. While prices do tend to go up, there are property taxes to think about, so holding onto a plot for the long term might not be your best option. Not all land is viable for development, so being aware of building codes will avoid inconveniences and pitfalls.
Still, there is always use for land if you know where to look. For example, a 0.5 acre stretch on the side of a Florida freeway might not seem like much, but it can be rented out to billboard companies, which would prove to be valuable. There is always potential with owning land and its worth is in the eye of the beholder.
Although the professionals who make money from raw land tend to do it by flipping cheap plots for pennies on the dollar, that doesn’t mean your raw land is useless.
As an investment, you can build and improve upon the land to sell at a later date. It is actually similar to house flipping, but with more options. You could sell your plot as farmland or a storage area for contractors. The possibilities are truly endless.
How Do I Find Cheap Land?
Raw land will always be cheaper than developed land, but that doesn’t mean it’ll be reasonable enough to turn a profit. In most states, raw land can still be pretty expensive when bought from an educated realtor.
The mistake that most people make is thinking that the only land they can buy is listed on sites like Land Watch or Land Modo. When in reality, there are acres and acres of land available that are not even listed on the market.
The secret behind a true land investment strategy is to make offers on plots of land that aren’t on the market. By the time it hits a government auction or a real estate site, it will likely be too late to flip.
There’s so much more to learn when it comes to land investment. Unfortunately, too many beginners waste their time and money making the same common mistakes. If you are interested in a land investment career, then learn from the best. We offer comprehensive programs and coaching solutions that will tell you everything you need to know about land flipping.