LAND
LOOKING TO BUY LAND?
LOOKING TO SELL LAND?
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COLDWELL BANKER COMMERCIAL:
YOUR TRUSTED ADVISOR FOR VACANT LAND INVESTMENTS
VACANT LAND – ONE OF THE MOST OVERLOOKED, AND MISUNDERSTOOD, REAL ESTATE INVESTMENTS
Whenever I tell people that I specialize in helping investors in buying and selling Vacant Land, I get a lot of blank stares. And I get it. When you buy Vacant Land there is no cash flow (unless it’s farmland rented out to a farmer, but the rent collected is usually just enough to cover the annual taxes) and the banks won’t give you a mortgage due to the non-existent cash flow. But the truth is, Vacant Land is capable of producing some serious returns.
HERE’S ONE EXAMPLE, OUT OF MANY, THAT I’VE PULLED FROM MY FILES
Back in 1997, a couple purchased 100 acres of farmland for a total of $480,000. Fifteen years later, in 2012, the couple ended up selling the farmland for $4,200,000 (for a gross profit of $3,720,000). That’s an increase of 775% over their fifteen-year holding period, or an annual return of 49.84%. So while vacant land doesn’t give you the annual cash flow you get from other, more popular, real estate investments, the returns one can get with Vacant Land can indeed be much greater. You forgo the annual cash flow, and you forgo the leverage you get with other cash-flowing real estate, in exchange for greater capital appreciation.
NOT ALL VACANT LAND WILL REAP LARGE FINANCIAL REWARDS
When it comes to Vacant Land, what you see isn’t always what you get. As with other real estate investments, the old adage “Buyer Beware” applies to Vacant Land. There are indeed people out there who will try to sell you worthless land. You need to do your homework and conduct a rigorous Due Diligence before buying any piece of land.
Some questions that need to be answered
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Is this Vacant Land in the path of growth?
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Is the Vacant Land flat (ie. no hills, valleys, ravines, irregular elevations)?
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Is the Vacant Land parcel an odd shape, or is it nice and square in size?
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Is this Vacant Land currently zoned appropriately, and if not, is it on the radar of the local Municipality as a future development area (and what will that Zoning be)?
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Are Utilities nearby, and if not, are they scheduled for the future?
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What is the history of this Vacant Land, ie. previous uses?
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Is the soil strong enough to support building structures? (Geotechnical Testing required)
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Does the soil drain properly? (Perc Testing required)
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Are there Environmental Issues with this Vacant Land? (Environmental Reports required)
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Is the Vacant Land in a protected Greenbelt or Government Natural Heritage System (ie. no development allowed)?
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Is the Vacant Land in a Flood Zone?
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Is the Vacant Land in a Designated Wetland?
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Is the Vacant Land in a Designated Significant Woodlands (where existing trees cannot be cut down)?
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Is the Vacant Land in a Protected Aquifer or part of a Groundwater Recharge area?
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Are there permanent or intermittent Streams on the Vacant Land?
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Is the Vacant Land a nesting site/habitat area for endangered species?
There are a myriad of questions that need to be answered, and tests to be conducted, to ensure that you are buying good quality buildable Vacant Land that is in the path of growth.
BUYING VACANT LAND IS A LONG-TERM INVESTMENT
As with any real estate purchase, the payoff of your investment will largely depend on how long you have held your land for. Purchasing an out-of-town parcel and holding on to it until the urban sprawl reaches it could take decades. Patience is the key for Vacant Land investors. The good news is that while you own it, the land just sits there. Management of this type of property is minimal. The simplicity and stability of owning the right piece of land, purchased at the right price, far outweighs the problems with every other type of real estate.
INVESTING IN WELL-LOCATED VACANT LAND CAN BE A GREAT WAY TO SUBSTANTIALLY INCREASE YOUR NET WORTH
​When it comes to investing your money, Vacant Land Is a little known, and rarely used, asset to grow your wealth. Vacant Land has proven to be not only a reliable inflation hedge, but a way for investors to greatly enhance their net worth due to the tremendous appreciation potential for well-located Vacant Land. There are Land Investors who, many years ago, purchased land in the path of growth, who are now not only able to retire from its value, but it has become the highest valued asset in their net worth portfolio.
VACANT LAND SERVICES WE PROVIDE
BUY
Vacant Land Acquisitions - We help you locate the ideal Vacant Land purchase for your Investment Portfolio. We not only comb through the Vacant Land properties currently on the market, but we also search to uncover off-market opportunities to make sure we find the right property for the right client.
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Due Diligence - You need to have your eyes wide-open when you’re looking at a potential Vacant Land purchase. We help you in providing access to the Due Diligence pros in the search to uncover problems with the Vacant Land parcel you are considering purchasing. From Environmental Engineers, to Geotechnical Engineers, to Percolation Testing Experts, we put you in touch with them, and help you follow-up with them, to make sure your eyes are wide open when it comes to pulling the trigger on a potential opportunity.
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Group Purchases - Vacant Land purchases are usually all-cash deals and the high cost for large tracts of Vacant Land usually puts most investors out of the game. From time to time, we put a group of investors together so they can participate in owning Vacant Land without having to come up with an astronomical sum that they would be unable to on their own. Please check out our “Group Investing” section for more information.
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Valuations - We give you the information you need to be aware of what your Vacant Land is worth. As you grow your portfolio, you need to know where you stand, so that you can make the best decisions you can moving forward.
SELL
Vacant Land Dispositions - When it’s finally time to cash out and set up your estate for future generations we’re here to help you. We take your assets to market with a multi-tiered marketing strategy to ensure we get the greatest exposure for your assets. We go to market with a deal structured to win, in order to give you the greatest return possible on your assets.
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Due Diligence - When selling your assets, having accurate and current Environmental, Geotechnical and Percolation tests, can streamline the selling process, and facilitate a smooth due diligence process, with a firm closing that you can rely on. However, this comes with a cost. We discuss your options, both positive and negative, to give you the information you need to make the best decision for your situation.
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Valuations - We give you the information you need to be aware of what the Market Value of your Vacant Land is worth. This gives you the control you need to make the best decision possible when it comes time to sell.