Expert: Terrence Cullen - 9/26/2008

Question
Hello Terrence,

I am interested in learning if one can make money in real estate by just buying land in different areas, maybe internationally even, in anticipation that the land might give good future increases in value. For example, a potential for industrial, residential, commercial, mining, minerals development or other types of development.

I'm just not into fixing up houses, renting, leasing office space, etc. Just buying land and hopefully reselling at a later profit.

Would you know of any books, CDs, courses, or other trade publications or materials where one could gain the knowledge of how to purchase land for future resale profits intelligently?

Thank you very much.

Sincerely,

Mike E.

Answer
The old saying is that land is the best investment since they are making any more of it. I agree that if you don't need income and can sit on the investment for a long time you would be right.

 The inherent problem with land is that valuations are so difficult. The price per acre depends on proximity to developments, zoning, future developments, market conditions, environmental concerns, etc.

 That is also why it is the most difficult loan to get without a development plan.

 There are certain areas where you might stumble into an opportunity if you have readily available cash and I can steer you into those deals, but there are deals of all sorts now for people with cash. If this is your first foray into real estate investing and your plan is to leverage  one deal into two and two deals into four, etc it just not going to happen unless you have lots of cash and partner up with someone to find
the properties and help structure the deals.

 I am sorry I am not familiar with any particular publication regarding the buying of land, but I suggest getting your real estate license and learning about easements, entitlements, zoning, environmental impact, deed restrictions,clear title.

 I hope this helps. Good Luck TC