Why Raw Land is a Great "Niche!"

Raw Land is a great "niche" within real estate investing. Why?

There's little if any cost in pre-screening properties and once you do a few pieces of raw land in a given area, it just gets easier and faster the more you do.

 

Since the investment is mainly in time, one of the things I like is I can squeak it into small time blocks I have or in the late evening or early morning hours whenever it's convenient for me.

 

Just these couple of aspects makes Raw land one of my favorite "niches," if you will, in real estate investing.

 

But, there's even more!

The reasons are many:

1)   No physical improvements to inspect

2)   You can see if it's in an area of potentially increasing value or in the "Path of Progress"

3)   You generally can have a clean slate to work with

4)   There are a multitude of Exit Strategies and options to include staggered options

5)   There is a definite amount of work you know that has to be done to get it to the point of being developed, as far as the land is concerned (irrespective of local or state government requirements which can change and are numerous).

6)   It's generally easy to see what you are getting

7)   You can sometimes slice and dice; buying it by the gallon and selling it by the shot

8)   It's usually easiest to get seller financing when purchasing and, when structured properly, you can offer seller financing when you sell, too.

The Art of Pre-Screening Raw Land

I conducted a one-hour training today for Platinum Members of the SOREM community (SecretsofRealEstateMillions.com) and it turned out quite well.

I've included the first few of my 17-item, quick-prescreening checklist:

I. Location in relationship to assumption you know marketplace. Everyone knows the axiom: Location, Location, Location. Dunes Landing property is good example.

II. Price – High, low, similar. If high or low, why?
a. If low, could be problems, looking for fast sale,
b. If high, may have a plan in place, entitlements, approvals, due diligence you need only verify
c. Ask Questions when you get to that point.

REMEMBER: You are looking for CLUES that lead you to believe there is a distressed property, unsophisticated seller or motivated seller!

III. Motivated Seller – How is it advertised, wording, offering creative deal structure.
a. Motivated Seller!
b. Seller Financing!
c. Seller Leaving State
d. Must Sell This Weekend
e. Partnership Problems!
f. Foreclosure!
g. Bank REPO/REO
h. Owner Will Carry
i. Kick me I am down!

Anyway, there's the first three things I analyze when beginning to look at different raw land properties.

Later this week, I'll post the big reasons WHY RAW LAND is a great niche in real estate investing to be involved in!

Go Make an Offer!
Jerry

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

What's next for the economy?

The reality is, no one knows. What I do know is that residential real
estate values here in my town, Salem, Oregon, are plummeting. And,
very quickly.

Houses in OK neighborhoods that would have sold for $200K+ last year
are now selling in the high $160s!

What that means for us as investors is that have to continually buy
better and better (translation: pay a lower and lower amount below
the ARV, or the quick re-sale value) to protect ourselves. This isn't
the time to run and hide! It's the time to get some incredibly great
deals!

Not sure or don't have a full grasp on what's going on in your area?

You need to. In fact, if there's one thing you should ALWAYS stay up
on it's your local market.

A great place to learn more: www.realtytimes.com and click on Local
Market Conditions.

Plus, subscribe to a local CCIM's newsletter (visit www.CCIM.com and
contact a local CCIM agent near you to ask if they publish one - a
state of the market type publication). I know our local Coldwell
Banker or Prudential (sad, cannot remember which one) puts out a
quarterly report on the local commercial real estate, which from my
view, is incredibly over-valued in our area.

Tom Cowan, my partner on several projects, and contributor to my
regular Raw Land and Commercial Property LOS Program Newsletter, has
created an incredible Special Report on the economy a few weeks back;
much of what he reviewed and talked about in his report is already
coming to fruition.

LOS Members/Subscribers will be receiving this report in the mail
over the next few weeks.

Get a handle on what's going on locally. You can't predict the future
but you can follow trends, look for signs and invest strategically
for the long haul!

Now, Go Make an Offer!
Adios, Jerry