Real estate investors, especially greenhorns like yourself, often avoid undeveloped properties. They do so because they look at a plot of land and think about the cost rather than the potential. Maybe it is time the long-term experienced investors learn from the younger, less-experiences ones. When a real estate agent shows you undeveloped properties in the next several weeks, there are a few things you need to be thinking about that will determine if and how you can take an undeveloped property and turn it into a money-making machine.
Major Tourist Attractions
When viewing undeveloped property, closely examine what is nearby. Are there major tourist attractions nearby? That is exactly what you want. You can turn undeveloped property into a campground for tourists that are bringing their tents and campers with them. For a few dollars each day, the tourists can camp on your open property while they visit the tourist attractions.
You could also build several small bungalows for people to rent while on vacation. Establish some outdoor restroom facilities and you are good to go. If you really want to give the people something, create a "glamping" (i.e., glamour camping) site where there are lots of small cabins and tents already set up with all of the comfortable amenities of home. However you choose to do it, you are creating something from nothing, with little permanent damage to the property, that will generate lots of money over time and then you can sell the property whenever you have fully recouped your investment and made a profit.
Glamorous Vacation Homes
Of course, you could always go the other direction and develop the property. Put some glamorous vacation homes on it, and then throw the homes up on all of the vacation rental apps. Whether or not your property is near tourist attractions may not matter if the vacation homes are luxurious and the price is cheap. People will flock to the apps and then book up your entire year for each vacation home you have for rent. Yes, you will invest a lot, but what you garner in rental fees will ensure a profit within a year or two.
Timeshares are hot commodities. People love saying that they have a condo timeshare someplace warm or someplace where it is very cool to have a timeshare (e.g., Denver, CO or an island off the coast of Washington state). Find these vacant properties and turn them into condo timeshares. You may have to hire a marketing and sales team to fill the timeshares, but then every condo is filled, and the money just rolls in.
Spas and Resorts
Is the vacant property in a place where a spa or resort would be ideal? Could you market a spa or resort located on this blank property? If the answer is yes to either of those questions, do that. For example, if there is an undeveloped lot along the road leading to the Hamptons, and the next spa or resort is not for twenty miles or more, that is exactly what you can build on that lot. The wealthiest of people would stop there when they have been traveling for some time and do not feel like traveling the rest of the distance to the Hamptons when it is late/dark out.
Brainstorming and Seeing a Lot for What You Can Make of It
The problem a lot of older real estate investors have is that they want to see the money now. They cannot see the money in the future. That may seem odd, since investors are looking to make money and build a portfolio, but looking at land as an investment means brainstorming what to do with it and transforming it into money. Most would rather buy a previously-developed property, renovate it a little, and get it started on the money-making path. The assumption is that a lot more work has to go into undeveloped property. As you can see from the above ideas, that is not always true.Share