Table of Contents
GET AN ONLINE COURSE/TRAINING
Getting to know the process of the business is a great way to minimize your risk.
There are numerous ways to get information on land investing. There are videos online, youtube, podcasts you can listen to, and Facebook groups you can join.
A course will lay out everything for you, giving a step-by-step process going about the business. Each course has its strategy on how to go about investing in land and you can check out what they can offer you.
RESEARCH ON WHAT PROPERTY YOU WANT TO GET
Doing your research before buying land will minimize your risks. Figure out whether the property you want to buy has problems with it.
With finding a property you would need a good source of data, one such source is AGENTPRO247. It provides information on property and houses. A cheap and reliable source
FINDING SUPER CHEAP DEALS
Tax auctions provide lots to put on sale for cheap. Property that the previous owners failed to pay their property taxes being offered to these auctions.
Generally land is much cheaper than a property with a house, even more so when you look into tax auctions.
CHECK TITLES AND POTENTIAL LIENS
Land typically doesn’t have mortgages in place and a lot of landowners do a poor job at paying their back taxes. There is land that has back taxes and did not go through the auction process yet.
Checking the title and potential liens before buying the property will minimize the risk of you paying for those built-up back taxes that you are not prepared to pay.
MAKE SURE YOU HAVE A BUYER THAT’S READY TO BUY
My ideal deal is to have the buyer and seller ready and do the transaction at the same time.
Paying for the land and then selling it off immediately after. In this way, it minimizes my risk because of the money I have to put out upfront.
EVEN IF YOU HAVE A LARGE LIST, YOU MIGHT NOT HAVE A BUYER
There are cases where the deal you have in place is not guaranteed. It may be due to the buyers being unsure, the property has a lot of negative traits or maybe the property does not have good access.
A way to go about this is doing an option agreement or extending the contract to close for much lA way to go about this is doing an option agreement or extending the contract to close for much longer. This gives you enough time to market the property and have a more confident buyer.
USE A TITLE COMPANY
Whenever you close a deal, use a title company to minimize your risk. They will do all the work for you, sorting the paperwork, and sending it out to the county.
IIn reality, this option is better if you don’t know how to self-close deals. If possible and you are confident enough, close your deals to save yourself from paying a large sum of money to the title company.
