Learn How to Make Money With Vacant Land
Today I’m going to answer your question about how to make money with vacant land, and I’ll show you a step-by-step process. This also applies to residential land.
This lesson is going to be really easy to understand, and I’ll show you an example of how one of my clients made money doing it.
The secret to wealth is always the same thing, good ideas. There’s always someone out there who will help you fund those ideas, so you want to come up with new projects and new ideas. I’ll give you some vacant land ideas today and show you creative ways to make money with land.
Want to learn how to make big profits in real estate? Would you like to buy mortgage-free homes for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Mini Course.
How to Make Money With Vacant Land:
Investing in Tax Lien and Tax Deed Property
I’ve been involved in the tax lien and tax deed business for over 30 years, and about 25% of all the properties that come up for tax defaulted auction are going to be vacant land or residential land.
There are over 3,000 counties in the United States and as many as 5,000 tax defaulted auctions. Every county will have these properties for auction. There’s not going to be any shortage; there will always be an abundance of properties.
You can do this part time or full time, and you can do this along with your regular job to keep your paycheck coming in. Most people do this part time because the auctions are only once or twice a year.
How to Make Money With Vacant Land:
Tax Deed Sales
Vacant land is usually where most people start because it doesn’t require a huge investment. Purchasing land at tax deed sales really works.
I like to buy vacant land or residential land at auction. Not only is there plenty of it, but the pricing is going to be very good because most investors want to buy housing.
You can make money every time because they’re selling property at 10 cents, 20 cents and 30 cents on the dollar with no mortgage.
With a profit margin like that, you’re bound to make some money. This can be a little goldmine for you.
How to Make Money With Vacant Land:
Unpaid Property Taxes
How did the property become tax defaulted? Because many property owners don’t want the property anymore, so they just stop making their tax payments.
The local government requires every property owner to pay property taxes. If it’s not paid, the treasurer is going to confiscate the property, which will go to auction for pennies on the dollar.
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How to Make Money With Vacant Land:
Bargain Real Estate Mortgage-Free
The bidding on properties starts at basically the back taxes because the county doesn’t want the property but just wants the property on the tax roll
There could be other bidders who realize the value of the property too, so the price could rise. The point is that you want to try to buy it at 60%, 70%, or 80% less than market value so that you can mark it up and resell it.
The property always goes to the highest bidder, and if it’s sold at a tax defaulted auction, the mortgage will be wiped out; it will be extinguished. You’re going to get a mortgage-free property for a bargain basement price. How good is that?
How to Make Money With Vacant Land:
Selling Vacant Land
Now put your ideas together. How would you want to sell it? By marking it up? By selling it like I do, buying it low and selling it low to generate cash flow from vacant land? Or do you want to buy it low and sell it with installment payments to make passive income from land?
There are many ways to do this. Residential real estate and vacant land offer you many alternatives. I can’t cover them all today, but I’ll cover enough so you get the idea.
How to Make Money With Vacant Land:
Market Value
When you buy at the auction, you’re purchasing a tax deed to that property. The appraisal on the property is the tax assessed value, but you might find out the market value is more than that.
You should also check to make sure the market value isn’t less than that. If the market value is less, then you’re not going to buy it.
This isn’t a high-risk business; it’s a low-risk business because you can check everything before the auction and before you ever put up any money.
How to Make Money With Vacant Land:
Other Places to Find Bargain Real Estate
Is a tax deed auction the only place to buy properties for a bargain? No, you can look all over the web or go to realtor.com. You can check the Multiple Listing Service or go to eBay, Zillow or Craigslist.
However, I’ve found that tax defaulted auctions are the best place to buy. Why? Because I know whom I’m buying it from, and I have a tax assessed value to work from. If it’s got a high value and low tax price, I’m going to buy that property.
How to Make Money With Vacant Land:
Other Government Agencies Selling Bargain Real Estate
There are many government agencies that sell these tax properties. For example, the Bureau of Agriculture and Bureau of Land Management, have surplus properties that they don’t want.
When they sell those properties, they do so at tax auctions in many cases, or you can go to their sites to find properties there. The whole point is that you want to buy for a bargain so that you can sell it and make a good profit.
How to Make Money With Vacant Land:
An Example
You can sell vacant land using a contract of sale, which is simply an installment contract, and here’s an example of how to earn money from vacant land with an installment sale.
One of my clients went to an auction and purchased a property with a tax assessed value of over $23,000, and he purchased it in a competitive environment for only $6,000. You can see the amount of margin.
He wanted to sell it, so how did he do that? He put it on Craigslist, put signs on it, used Facebook marketplace and did whatever he could to let the world know the property was for sale.
How to Make Money With Vacant Land:
An Installment Sale
He offered an installment sale. A lot of people can’t get financing at a bank, so what are they going to do? They’re going to accept an installment sale.
He sold the property for $5,000 dollars down. He got almost all of his money back, and he accepted installment payments for 10 years. $200 a month for 10 years, that’s $24,000.
He’s going to get his $5,000 plus the $24,000, and he only invested $6,000. Where are you going to make that kind of money?
How to Make Money With Vacant Land:
Conclusion
We hope you enjoyed Ted’s lesson, “How to Make Money With Vacant Land”
You can make money with vacant land if you have a large enough profit margin, and purchasing land at a tax defaulted property auction is an excellent way to get a deep discount.
At a tax sale, you can pick up properties for 10, 20 or 30 cents on the dollar, leaving you with an enormous margin for profit, and about 25% of the properties for sale will be vacant land.
If you’d like to know more about tax delinquent property investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.
You can learn how to reap the huge rewards from tax lien and tax defaulted property investing! Begin today by taking advantage of Ted’s Free Master Class! Act now and start yourself on the road to financial freedom!
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