As a limited commodity, there is an inherent stability in land ownership. Additionally, there are several ways for real estate investors to benefit from adding land to their portfolio. Before you make such a large investment, it is beneficial to explore the array of methods to earn the best possible return on your dollar. Additionally, you may find that you are excited about what lies ahead with your new holding. Would you like to learn more about how you can achieve making income passively or actively with land? We will cover 5 ways to make money from vacant land in Detroit.
Divide and Sell
Creating “new” land is a creative way for those who invest in larger tracts of land to realize a return. These investors profit by subdividing, which increases the value of the entire tract. There is a great deal of profit to be realized by selling off smaller plots of vacant land in Detroit. While this is a relatively simple method of investing in real estate, you should still do your homework. you will want to have professionals that you can rely on for assistance with zoning or other issues that may arise through the process of subdividing the land, with regard to environmental issues, paperwork, deadlines, and local and state laws.
Let’s face it, buyers prefer homes that are move-in ready. There is also a high demand for housing, as an investor, this desirability means there will be demand for the end product. Often, investors buy large tracts and subdivide with plans to build spec homes which is a highly profitable way to make money from vacant land in Detroit. Before undertaking this task, it is important to be realistic about the overall financial demands, having laid out a long term plan. It is extremely important to have a strong reliable team at hand to call upon as well.
Owning land is something that not everyone has the ability to achieve, however, they still desire the benefits, such as growing a personal garden or cultivating a variety of crops on larger tracts. Depending on your location and local zoning, you may also be able to rent the land to hunters or use it as a storage area for RV’s, boats, and the like. While more complicated, with the right property you could also consider building a campground business, if there is a demand in your location. Renting out sections of your land to individuals for use is another way to make money from vacant land in Detroit. While holding land for the long term as an investor does mean a gain, income from the land can be used to offset the expense of property taxes.
One of the simplest ways that a Detroit real estate investor can realize a very nice profit on vacant land is by holding the property for the long term, especially if you get a really good deal. You could also hold the land, but lease it out, covering your costs of owning the property, and still sell it after several years. These are two relatively simple methods of making money from vacant land in Detroit. Just as with investing in the stock market and holding for the long term, there is no guarantee of high returns, however, they are likely.
Short Term Lease
Depending on the location you select for your land investment, temporary leases to retailers of holidays or seasonal products can be a great way to make money from vacant land in Detroit. These products could be anything from a fireworks tent every Fourth of July, Pumpkins every October, or an annual Christmas Tree lot, there are a variety of possibilities. Many investors in this type of real estate are able to live extremely comfortably off of this type of transaction. Any inconveniences of dealing with the rental agreements and legalities of the public being on your land are offset by the profits, which can be quite impressive.
Why not let the experts at We Buy Houses in Detroit be your team? With our vast network of experts, We Buy Houses in Detroit can help you manage your land investment, You can do as much as you wish for yourself, if you want to do it all yourself, We Buy Houses in Detroit will be happy to guide you step by step to success! By laying out a plan beforehand, you can focus on finding a good match, meeting your goals. We take the time to listen and understand the demand you have for your perfect piece of land. We Buy Houses in Detroit will explain these as well as many other creative ways to make money from vacant land in Detroit in full detail. At We Buy Houses in Detroit, our job is to make your real estate investment dreams a reality. Send us a message or give We Buy Houses in Detroit a call today at (313) 246-4551 and invest in your future right now!