7 Reasons why buying land is a better investment than traditional real estate.
Real Estate investment is HOT right now. Every time you turn the TV on, there’s a new house-flipping show. But you see a deeply-edited version of reality. Buying a house to flip is so much more difficult than it seems.
Land is a different story. When you compare buying land to buying houses, the advantages pile up fast. Land flipping is both a no-brainer and a well-kept secret. Here are 7 compelling reasons why buying land is a better investment than buying houses.
- Less competition
- Extensive education unnecessary
- Less hassle
- Less cash upfront
- Less risk
- Sell remotely
- Quicker profit turnaround
#1 There Is Very Little Competition
Everyone and their brother is flipping houses these days, but that means there is a ton of competition in the market. There are only so many houses to go around. Sure, there are plenty of houses, but not ones that you can flip for a big profit. Since everyone is going after the same houses, the demand for these properties has become outrageous.
Investment in land, on the other hand, is one of real estate’s best-kept secrets. No one is making TV shows about land flippers since there’s nothing sexy about selling dirt. People don’t realize how valuable a raw piece of land in the right location is. However, the question “is buying land a good investment’ definitely YES. And, once people start finding out about the land flipping space, the competition will ramp up.
#2 You Don’t Need Extensive Education or Experience
You do not have to be a real estate investor or expert to figure out how to flip a parcel of land. As a matter of fact, you don’t even need a real estate license. Anyone can learn how to do it. You simply need to learn what to look for when buying land and understand that with the right due diligence, anybody can make a great purchase and start collecting passive income.
#3 There is Less Hassle
Flipping houses is a lot of work. When you watch a TV show, you only see an inch or two of what it’s actually like. They don’t show you all the expenses that added up to more than they projected or tell you about the television network that paid for the house.
They don’t show you the room full of people working the phones, cold calling seller after seller to get a deal, or the 20,000 pieces of mail they sent out in mail campaigns. You don’t see the acquisitions manager they have to pay or the hard money lender who charges a fee and interest.
You can buy and sell vacant land without dealing with a building inspector, gas company, plumber, or tenants. Basically, there’s no mess, no hassle, no hidden costs.
#4 You Don’t Need Much Cash Upfront
Houses are expensive, even before you pour all the money into repairs. There are several different types of real estate and several different property taxes. Tons of the land investors we’ve mentored decided to turn away from real estate after having a bad experience with flipping commercial property. Even trying to flip a retail property requires a good amount of cash flow before your start profiting.
The land is cheap if you know where to look, and it’s valuable if you know who to sell it to. You can buy a vacant lot for a few hundred dollars and sell it for a few thousand. Then, you already have money to invest in your next parcel of undeveloped land. With most real estate investments, you need to be fairly rich before you can even start but land purchasing is a different story.
#5 There Is Less Risk Involved
Any time you’re spending less money, there’s less risk. When buying houses, you have the initial costs, plus all the repairs, and those hidden costs add up fast. If you can’t find a buyer willing to pay you enough, your profit is at risk. Why take a higher risk to make less money when you can make more money with lower risk?
#6 You Can Sell Land Remotely
You don’t need to leave your house to buy vacant land. You can literally do it from your couch with your laptop and cell phone. We’ve bought and sold properties that we’ve never seen in real life.
This is one of the biggest benefits to land ownership in the times we’re living in right now. There are all types of land available for sale, and they’re easy to find if you know where to look.
#7 You Can Make Sizable Profits Quickly
Let’s be honest—it takes a long time to turn a profit when you’re flipping houses. Be prepared to hit your head against the wall for the next 18 months before you close your first deal. But you can flip a piece of land for a sizable profit in just days.
We’ve done this hundreds of times now, and we teach others how to do it too. Many of our Land Profit Generator students close their first land deals within their first 90 days of starting their business. That’s unheard of anywhere else in the real estate space.
Bonus Advantage: A Community to Cheer You On
Land flipping really is for anyone and everyone. If you’re committed and motivated, and willing to learn, you will succeed. Buying raw land is simple, cheap, and easy to sell. There’s little to no risk involved and you can sell it from the comfort of your couch.
There’s minimal hassle or mess and very little competition. You’ll set long term goals, achieve them in the short term, and have to set new ones. And when you join our Land Profit Generator Community, you have a whole lot of people cheering you on and helping you out. It’s a win-win.