Buy land, they’re not making any more of it — Mark Twain
First a point of disclosure.
As of the writing of this article I have participated in a total dos tratos de tierra (that’s a fancy Spanish way of saying I’ve only done two land deals so far). One was and still is an 11-acre development deal and the other was a 2 acre residential listing that did not sell.
Is land my area of expertise, the answer is no. So, why the heck am I writing about it.
Because Dirt is Cheap!
As in investing Realtor, I know it’s going to get even cheaper. Therefore, I’m going to make it a part of my “Circle of Competence” as Warren Buffet would say.
If you hadn’t heard there are a few foreclosures going on. Home Builders who have been around for over 50 years have vanished, newspapers like the East Valley Tribune are shutting down, car dealerships like the ones that used to line the streets of south Scottsdale, Arizona have become empty shells.
But the dirt remains. Buildings have come up. Building have come down. Jobs have been created. Jobs have been terminated. But the dirt remains.
A federal government employee once said, “Never let a good crisis go to waste.”
When To Buy Land?
When the seller has more pain than you do and there is even more pain in their horizon. The light at the end of the tunnel for the seller is not financial freedom, but a train… a train of pain.
That’s when you buy. That’s when you get the best deals on just about anything, isn’t it?… Even AZ land foreclosure. If I had to choose between a bank foreclosure or a short sale, I’m choosing to go to the land foreclosure auction website and make my bids… as soon as I now what I’m doing.
They’re Opportunities In Crisis, Yes?
Let’s be honest, there two things you have to wait for to become successful. Pain and Envy. The media will tell you which is in abundance. Looking back in history it seems to me the wealthy bought during the pain periods then sold during the envy periods.
Benjamin Graham called that person, “Mr. Market.” And as an investor you are to do whatever Mr. Market is not. And today Mr. Market isn’t buying land.
Two Things To Know Before Purchasing Land For Foreclosure
To make trillion gazillion dollars in land, you must either…
- Own land that rests in the storm of progress and growth.
- Create a higher and better use for it.
I learned from land expert Jack Bosch, that back in the day Disney Corporation bought the swamplands near Orlando.
Would you buy swamplands? Don’t lie! If you said yes, then I have a bridge in Brooklyn listed offering seller-financing with a small down-payment.
From what I found that before you learn… how to buy land… you must ask yourself are you willing to do the intense research and complete due diligence. Do you have what it takes to make a successful project?
If so, don’t waste a good crisis.
Moving Forward,
Kendall E. Matthews
www.InvestmentRealEstateCorner.com
P.s. Have you bought land before, do you want to learn more? If so, you should check out some my review of land investing training tools coming up.