The Hidden Benefits of Raw Land Investing – Why You Need Vacant Land In Your Real Estate Portfolio
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The Hidden Benefits of Raw Land Investing – Why You Need Vacant Land In Your Real Estate Portfolio


(light cheerful music) – Hey there, this is Seth
from the REtipster blog. In the next few minutes, I’m gonna hit a few key reasons why I believe vacant land is the ultimate
real estate investment and frankly, if you’ve
never bought vacant land or if you haven’t even
considered it, you need to, and I’m going to explain why. I think a lot of people, when they hear the words “vacant land”, they just write it off
and don’t even consider it. And it’s mainly because
they hear those words and they just think, vacant land is boring. It just sits there and nothing happens. It doesn’t produce income,
what’s the point? But I’ll tell you right now, vacant land can produce a TON of cash flow and a TON of income, if
you know what you’re doing. I’m not sure what kind of experiences you’ve had in your life, with things like rental
properties, commercial real estate and
other types of buildings you have to keep up and maintain, but if you know anything about
those types of real estate, I’m gonna tell you right now, boring is a GOOD THING. I love the fact that when I buy land, it just sits there and NOTHING HAPPENS. It’s awesome! When you buy it, you don’t really have
to “do” anything to it. If you buy a piece of
land at the right price, (and by the right price,
I mean a very LOW price), buyers will come out of the woodwork. It’s just a matter of
whether or not you bought it at the right price to begin with. Obviously, this is a key component of any real estate investment and land is no different. If you buy it the right
way, there’s no reason you can’t flip it for a
profit without doing anything. I don’t have to deal with any stress, I don’t have any monthly
mortgage payments to make, I don’t have to lose sleep at night wondering whether contractors and tenants are going to do what they
say they’re gonna do. You just buy it, get the deed, and you can re-sell it. Another one of the key reasons why I love buying vacant land properties is because I don’t have
to deal with competition. If you’ve ever tried to
get a smokin’ awesome deal from the MLS, you probably know it can be really hard. Competition is NOT a good thing. It makes your life hard,
it makes my life hard… So if you can cut through that and just eliminate it
altogether, why not do that? While all these other people are out there focusing on houses and
buildings and things like that, the people who are buying vacant land and are really focusing on that niche, they have the playing field to themselves. Because there’s just not
that many people out there focused on that particular
type of property. Probably the number one reason why I love vacant land
at the end of the day, is because when you buy it
for next to nothing like I do, and when you sell it
with seller financing, you can make a ton of money, and you can make it as passive income. You can buy these properties, sell them with seller financing, and they essentially become kinda like little rental properties, only with none of the headaches that rental properties are known for. In this kind of scenario, it’s your borrower’s responsibility to take care of that property. These people have a vested
interest in the property because if they don’t do this stuff, and if they don’t pay you,
they’re gonna lose everything. In their minds they actually
have ownership of this. And these people tend
to treat your property much different than a tenant would if they were renting it from you. For obvious reasons this is a great thing and it takes a lot of the
hassle out of your hands, but the money keeps coming
in because the work is done, and they have to pay it off. Another one of the hidden
blessings in all this, is that, generally
speaking, if your borrower ever stops making their
monthly mortgage payment, you know, everybody’s worst nightmare, it’s actually not that bad of a thing. And in fact, it can even be a good thing. The fact of the matter
is, you do, in essence, have a collateral
position on this property. If they ever stop making their payments, you can repossess the property, keep all the money that your
borrower has paid you to date, and then re-sell the
property all over again. There’s a lot of times when you can have a really profitable deal on your hands, and then, once your borrower defaults, you could even double or triple what already was a very profitable deal. So if you can kinda follow
what I’m saying here, when you buy land, when
you own it free and clear, you can sell it with seller financing, you are in a very, very,
very good position, and it is very hard to
get hurt in this process. A really cool benefit about vacant land is that there’s actually a lot of ways that you can buy and sell these properties without ever seeing them in person. Now this is a little bit different from houses and rental properties, things like that, because, essentially all you’re buying
and selling here is dirt. What this means is, there’s just far fewer factors and issues that can go wrong. Now, do you have to research vacant land? Absolutely. There’s a lot of things you want to look into before you buy it. But the great thing is, you can look into a lot of these things without actually going to the property
and seeing it in person. Things like Google Earth,
things like AgentPro247, calling the county courthouse, calling the county clerk’s office, calling local realtors
and getting them involved, there’s a ton of ways to find out everything you’ll ever need to know without you having to travel out there and be there in person. You can do this kind of
business from a long ways away. You don’t have to be
buying these properties in your back yard. Another great benefit
about buying vacant land is that it is extremely
inexpensive to own. Just to give an example of one that I own, the annual property tax
bill for this, is $80. Okay, I’ve got another one where
the annual tax bill is $36. And again, all the properties that I buy, I don’t have any mortgages on them because of the fact that I
can get them for so cheap. When you can buy land for thousands or even hundreds of dollars, it’s just not that hard to
own them free and clear, which means there’s just very little that you have to worry about and pay for on an on-going basis. And yet another reason
why it’s not a bad idea to buy vacant land is because they aren’t making any more if it, okay. Unlike houses, unlike the stock market, unlike gold and silver and
all these other investments, land is one of the only things out there where there is a finite amount of it. Especially if you can buy
land in the path of growth, you could find yourself with an asset that a lot of people desperately
want to get their hands on. Now, some of this takes
a little bit of foresight in looking for the right things, but I’ll tell you right now,
it’s really not that hard to find properties that
are in the path of growth, and that a lot of people are very likely to want in future years. Another great thing about land
is that it’s very hands-off. There’s a lot of scenarios out there where you can buy a piece of vacant land, and then lease it out to a third party, kinda like a rental property
with none of the headaches, and they will pay you just
for the use of your dirt. For example, cell phone towers. Wind power companies. During hunting season you can
lease your land to hunters. Farming is one of the most
common examples of this. Obviously, if they’re gonna pay you and if they’re gonna do all the work, and if they’re gonna maintain everything, that sounds like a pretty good deal to me. I don’t know about you, but if someone offered that to me for my
dirt, I would gladly take it. So as you can see, vacant land investing, it just makes sense. These properties are not hard to get, you can get them for very
cheap, very hands-off, there’s very little you have to do, it’s very inexpensive to hold, it’s a finite asset, they
aren’t making any more of it. I mean, need I go on? My hope is that you’re
starting to understand why vacant land makes sense and why it’s a awesome no-brainer investment. Again, a lot of people don’t get it. And at the end of the day I
guess it doesn’t bother me. So my hope is that you’ll think
a little bit more about it. Because it really, it can
make a lot of sense for you especially if you know
how to buy it right, buy it for the right price
and really utilizing it and start making some
passive income from it. Thanks again for stopping in. Hopefully this video was helpful to you. If you got any questions or comments, please feel free to leave them below. I’d love to hear your thought on this. If you think I’m missing
something, if you think I’m wrong, if you’ve got a different perspective or if you’ve done this
kind of thing before, I’d love to hear about it. Thanks again, I wish you all
the success in the world. Let’s stay in touch, okay? See ya. (soft cheerful music)

100 Comments

  • Al Montag

    I purchased a piece of land where most of the parcels except mine were purchased on land contract. All of these land contract owners created their own junk yards. It took about 4 months for the owner who owned the parcel next to mine to clean all of the junk that the previous occupants put on the property including the trashed out trailer they lived in and left behind. I also learned that renting land from someone else is also is a wonderful opportunity to secretly dump hazardous waste and make money. Its also important to talk to real estate agents who know how the local courts will treat land contract agreements. If you have timber and are not around then locals may steal your timber as well when they find out an out of town, week-ender bought the land. There are many more headaches that I haven't even mentioned:)

  • dnsmithnc

    If you have timber, be sure that is protected. Had one piece of property and the buyer had it timbered. Unscrupulous, fly by night timber companies will log it and disappear into the woodwork. Also, it is often hard to determine what a "good deal" is. Lot of factors to take into account. It is easier to determine the value of homes as the market is larger and comps are readily available. Lastly be careful with already timbered land. This reduces your market tremendously if your looking at recently timbered property. There's a lot of other things to take into consideration. You've got to do your homework.

  • kulturfreund66

    I own about 11 acres of farmland in Portugal and I have to say land property can cost you a lot of attention , too. You have to cut down brooms and other bushes at least every three or four years in order to prevent fires.
    If you don´t want to have hunters there you have to fence it expensively all around or make extense burocratic applications to the authorities so that they´ll allow you to put up every hundred yards signs around it saying "hunting excluded here". – Signs you have to pay for.

    Your land also needs to be watched after by somebody to look if somebody cuts down your trees in order to steal firewood or if somebody abuses it as a dump for all kind of rubbish, maybe even heavy toxic stuff. Have you thought of the immense costs of getting rid of such matters? What if your land gets affected by disturbances like wars or riots, or if other inconveniences take place like fracking in the neighborhood that polutes your ground water? If you want to be safer you have to have insurances and maybe pay for lawyers. This piece of land during sometime was occupied by a shepherd and his flock and we ( my father and I) had to take him to court to push the guy out again.
    A very costly measure and the lawyer seemed not to care too much, too.

    By the way this piece of land is really excellent for growing wine and olive trees or fig trees etc. and it has a well. Thirty years ago it was one of the three most valueable spots in the village area and it was worth then about 65,000 USD. It´s worth declined immensely since then and I would be lucky if I wanted to sell and would get out a quarter of that amount.

  • kulturfreund66

    Seth Williams, you´re a pure poor capitalist who doesn´t have any respect for nature.
    For you it´s just a matter of buy and sell (with good profit of course).
    You let land to hunters, who don´t give a fuck about animals and let land to farmers who spread they herbicides and insecticides squeezing everything they can. You don´t have any of a conscience or a philosophy. You´re just american mainstream which never learns anything from the mistakes of the past. You´re a true Donald Trump follower.
    Congratulations.

  • phantomofoz

    I want to buy some land for an allotment business, but not too sure if I need some kind of permit for it or whether I can just do it as long as I have access to a water supply. Also, how do I know if I'm getting a good deal? ( from a newbie point of view)

  • Pam Jean

    good points. cell phone towers are toxic within 7 miles. just rent to organic farmers, pesticides cause cancer and destroy water and land.

  • Experimental Channel

    I just got out of college. This makes me more excited than the job I have now. I have am new to this and I have money to spend. Where do I get started?

  • miguel f

    do you have a video teaching how to sell financing a land ? if not can you give us a few ideas ? I though its illegal , or needs special licence etc., wow that is a good info that I never though thanks

  • Denise Rodriguez

    love these tips! And if your not sure if your getting a good value, you can get The Land Report Analysis and they will analyze the property for you and you can use the Report to increase the value of the property. Learn more at www.thelandreportanalysis.com

  • AngelOrGhost

    Money is not everything Seth, think what you are doing before you ruin peoples lives, including yours and your family's. It's a crime to put those huge wind turbines and cell towers in those beautiful, quiet landscapes. You will ruin your neighbors lives, all for a few bucks. To have hunters coming to destroy all the animals that live around, really??? so they could have some fun, think again. Your music was horrible but is better than your advice.

  • sunnyboy532

    I think this video was beautiful very informative I really appreciate you taking the time out to post it this is definitely something that is the best kept secret

  • Robert Uceda

    Seth, what are some useful links to look into this type of investing? absolutely interested in this!! need to pay off government student loans! thanks

  • NoH8

    Were i live i can buy some land for 25k and its just the land/lot itself its tempting cause what if i flip it for more but then again what if i end up loosing

  • sideskraft

    Here in MI, I see the price history of most vacant land for sale has dropped over 1-2 years, and much of those are below market value. They key is finding land that's not advertised anywhere and that's near prosperous metro or suburban areas. I think the IRS taxes short term profits on real estate pretty aggressively.

  • Ojibwa62 x

    First thing I do is use Google maps to see how far it is to the nearest city with jobs.
    I have bought and owned land in a couple states 65ac in GA , 80ac and 75ac in TN, all three tracts were in rural areas but still 25 miles to the nearest city and jobs.. We owned these properties in the late 90s and early 2000s and paid around $1000 an ac.. we have decided to semi retire but wife wants to work a few more years, we have been looking for a year and what a shock land prices pretty much everywhere have gone crazy , even land in the boonies with no way to commute to a decent job. Instead of being 25 mile out now you have to look 50 or more and prices 2000 to 4000 an ac. It's getting a tad depressing but not giving up.

  • Michelle Truong

    Nice Seth, I bought some lots ,land in Maine and Arizona where can I advertise to sell them I want to start do it for a living

  • don dada

    Man this aint true I lost 50k buying land. All lies. Nd land in Texas is real expensive and Mississippi u not gone do well buying land

  • J S

    Hey seth how do cell phone tower companies figure out how much to pay the land lord? Is it based on how many calls go thru the tower?

  • Gogo Louie

    I'm sorry but something about this guy's face seems just so untrusting and shady. More specifically, it's something about his eyes. My immediate reaction when he started talking was a feeling of being connived. You look like the perfect actor to portray a treacherous villain in a theater play or film. This feeling became more pronounced when he started describing land foreclosures on buyers/renters.
    I'm not trying to insult or make fun of him, I know nothing about him. This is in fact the first time Im watching any of his videos. I could in fact be completely wrong, Mr. Williams might in fact be a quality man of upstanding character. I'm just giving a honest initial assessment of what I thought.
    Mr. Williams, for some real advice, I'd suggest you change your look. Perhaps some fake eyeglasses, maybe grow some facial hair or a new hair style, maybe even try a new outfit. Does anyone else get the same vibe from him? I wonder if he's been told this before.

    As for the information, thank you for the video. This is just the info I was looking for, very informative. I don't have enough money to invest and fix up an existing property, I thought I could start looking into cheaper structureless land first.

  • Edi

    i inherited a piece of empty land that is 8 acres. It was bought for $33,000 in the year 1999 in the country and now it's worth about $60,000 as of 2018. I'm interested in real estate and investing but I'm so new to all of this and I'm not sure what to do with this land. Sell it or try to do something with it to increase it's value while earning a passive income? Maybe something like a farm or putting some mobile homes on it? Hm.

  • 925-Hustle!

    Buy vacant land in a growing community sit on it for a long time and sell it! the value of the land will go up

  • Rodney Thomas

    I think u contradict every piece of info I've researched to date at least as far as perspective goes but to each their own I guess

  • Michael Candelaria

    What do you Suggest as types of vacant land, Farming, Forest, Desert, Mountain, Lake property or What Other types are best to invest in at the Cheapest Rate per acre? Any suggestions appreciated.

  • El Jefe

    Thanks for the heads up on the county clerks office. I just called and found out there were no back taxes on the property i'm trying to buy, the annual property tax amount, the zoning, and whether or not it's in a flood zone. That saved me some headache. Great tips.

  • Patrick Grengs

    That background music does nothing for your pitch. In fact, I got through only the first two minutes then went to other (of many) vacant land transaction videos.

  • GenZMommy

    I’m glad a bunch of people are complaining about the music & clicked off . Cut the amount of people to invest in land , in half lol

  • Daniel F. Harb

    Hello Seth! Thank you for the excellent presentation. Just bought my first parcel of land and hoping to continue to invest in land opportunities. Thanks!

  • My Real Estate Notes

    Great inputs! I’ve been checking out similar videos and cross referencing. There are so many factors that make me think that decision making is really unique and personal. Thanks for sharing. Keep it up!

  • Gods Waching

    If you believe in God imagine creating a planet where its human inhabitants have to pay to live there.what? Save your money and get land out of jail , grow food and share it with the rest of the people. Buying and selling land is the one of the biggest sins..Christopher Columbus anyone? . Period.

  • Gods Waching

    If you believe in God imagine creating a planet where its human inhabitants have to pay to live there.what? Save your money and get land out of jail , grow food and share it with the rest of the people. Buying and selling land is the one of the biggest sins in this world.Christopher Columbus anyone? . Period.

  • LA Prepper

    Quick question, do you think I should focus more on land closer to where I live so that maybe I can develop it and manage it in my free time or consider it more like a paper investment where I'm basically hands off so it could be halfway across the country and it wouldn't really matter? Even things like looking up local records is a lot easier in person than online over the phone or VIA mail although you can of course do a title search just by calling me a title company and giving them your credit card

  • Norman Graham

    I own 280 acres in NY. First 500K, takes it. Mineral rights transfer. (No gas lease). The problem is too much land, is difficult to sell. The buyers are limited.

  • Hans The Heathen

    A lot of times it's a win win situation, people can get land without 20% down and you make money in the long run

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