Vacant land proves a great way to build passive income. Land is relatively easy to acquire, there’s not much competition for it, and it offers a kind of blank canvas for development, recreation, and even investing. Additionally, most land requires a low level of maintenance as opposed to structures. And, there are no tenants to worry about. From traditional projects (like building a house or land banking) to out-of-the-box uses (think seasonal ventures or conservation efforts), vacant land offers lucrative options to increase your passive income. In this post we look at 5 Ways to Build Income With Land in Arizona.
1) Flip It
From beginning investors to experienced investors adding to your real estate portfolio, why not start flipping to capitalize on land in Arizona. While flipping houses may be familiar to you, land too can be flipped for a quick profit. Typically, entry into land ownership requires much less capital and a great deal less paperwork and pre-closing work to be done. You can often purchase land at a bargain, then resold or even offer owner financing and earn interest on the sale.
2) Divide It
Buying a parcel large enough to be subdivided is another excellent way to capitalize on land in Arizona. Subdividing land is a complicated transaction. However, with proper management of the project, there is a potential for high returns on this type of investment. The raw land is subdivided into multiple properties and sold.
3) Develop It
Developing raw land may sound like a daunting task for newcomers. However, there is no reason to avoid this fantastic opportunity to capitalize on the ground in Arizona. Hard work pays off, and when developing land, this is especially true. You will need to perform extreme due diligence to ensure you have a plan and prepared for every step of the process.
4) Hold It
Holding onto land long term is a less complicated method to capitalize on land in Arizona. However, you shouldn’t automatically discount this option. The potential for high returns on the investment is quite attractive. While cities and populations may grow and expand, there is a limited supply of land. While structures may deteriorate and decrease in value, land continues to appreciate. A carefully calculated investment in raw land will become a high-demand location and bring an excellent return on the investment given time.
5) Work with a Pro
From zoning approval to a development project on a large scale, there may be no better advice you receive than to team up with an experienced investor. Investing always carries risk. However, when you set out to capitalize on land in Arizona, there are rookie mistakes that you can avoid by working with a professional full-time investor agent, like the pros at Southwest Land Deals. For more experienced investors, why limit yourself? Expanding your investment team allows the ability to increase your portfolio to a scale impossible to manage on your own.