Today I’m answering your question, “Is buying land in Florida a good investment?”
In this lesson, I will reveal to you a subset of the traditional real estate business, including land, where you can buy for pennies on the dollar.
I’m Ted Thomas, and I’ve been investing in real estate as an entrepreneur for the past 30 years.
Want to learn how to purchase bargain real estate? Would you like to buy mortgage-free property 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.
The Florida Real Estate Market Is Expected to Grow
Florida has changed a lot in the past 2 decades. The United States Census Bureau tells us that Florida now has 22 million people as residents and is growing rapidly. Florida expects very close to 1,000 new residents a day.
The demographics support a very healthy business community, and the future population is estimated to be at least 26 million by 2030.
Florida is a no-state-tax entity, and that attracts people from across the United States, especially New York, New Jersey, Illinois, and California. The Florida Department Of Economic Opportunity claims 80,000 to 90,000 new jobs annually.
All of this growth and many new residents are going to increase the demand for home development and for subdivisions, parks and office buildings. There is an abundance of land deals in Florida!
Getting Started in the Business of Land Investment
Is buying land in Florida a good investment for you? Florida land is a different business than purchasing single family homes located in subdivisions. Land is unique.
There are far less headaches when holding land than residential real estate. For example, with single family homes, which many purchase for rental, a simple roof leak in the living room could ruin a home if left unattended.
If you’re planning to use land as an investment, first figure out what is your desired outcome? Do you plan to develop the land? Are you going to graze cattle? Florida is a big cattle state, #2 nationwide.
Real estate brokers with experience in land and development are your best choice for getting started. They can give you valuable advice about the land if they are experienced.
The smart money realizes that you need experienced help, which means a real estate broker who knows about development, zoning, easements, property surveys to determine the correct boundaries and the challenges of developing the land as a subdivision.
Don’t shoot from the hip, hire a specialized broker to give you advice. Hire numerous brokers to check up on each other.
There is a lot to think about if you are going to purchase land. Knowing your outcome is very important. Many want to buy and hold, and others want to buy and flip – basically resell. Still others want to buy and develop.
Determining the Value of Investment Land
If you’re looking at land, it’s always a challenge to figure out the value. Unlike with homes, where you can find many comparables on the same street, land is a whole new ballgame.
Is buying land in Florida a good investment? The value of land is determined by numerous factors. For example, is there water to the property, or will you need a well? Are the utilities on the lot and just need to be attached, or must you bring the utilities from a distance away from the property?
Certainly many pieces of land are valuable just for grazing cattle. Assuming there is water close by that’s relatively available, cultivation could change the value of the land immediately.
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A Little-Known Way to Buy Cheap Land in Florida
Is buying land in Florida a good investment? Yes, I personally solved the problem of land, and I found a very lucrative business.
I’m going to reveal an almost hidden market where things are mandated by the state legislature of Florida and executed by the local county governments that supervise and mandate ordinances, easements, take care of roads, county water, and in some cases, the utilities. All across the United States the process is similar.
Traditional real estate is considered to be homes, vacant buildable lots, apartment properties, and office buildings.
There is an alternative to traditional real estate, and most of the public is unaware of it. It’s called tax defaulted real estate, which involves tax lien certificates and tax defaulted property.
Buying Land in Florida for Pennies on the Dollar
It works like this. In all 3,000+ counties, the treasurer levies and collects property taxes. If the property tax is uncollectible the county treasurer will seize that property, remove the tenant, and resell the property at a public auction to the highest bidder.
The Treasurer will cancel the mortgage or trust deed loan as part of the auction, and the property will be sold with a starting bid of very close to the delinquent back taxes.
To accelerate the sales process and motivate potential buyers, the treasurer is authorized to start the bidding at 60%, 70%, or even 80% or more below the tax assessed value.
Properties will be sold for prices as low as 10 or 20 cents on the dollar.
There will be an abundance of land at tax-defaulted auctions. My 30 years of experience has shown that 25% to 30% of the properties sold at tax defaulted auctions are land.
Large tracts of land, 20 acres, 40 acres, or 50 acres may be available. Whole subdivisions and partially sold-out subdivisions will be up for auction.
Do Your Homework Before Buying Land for Investment
Today I’m answering the question, is buying land in Florida a good investment? My experience is that newcomers and seasoned investors who are savvy to the rules are purchasing at tax-defaulted auctions.
The most important rule is do your homework and know the property value before you bid. These properties all can be reviewed and evaluated prior to the auction. The treasurer will clearly point out the property description, and you are free to check the property before bidding. Look at the property before you bid.
We hope you enjoyed Ted’s lesson, “Is Buying Land in Florida a Good Investment?”
Yes, if you know the rules and do your homework, land can be a lucrative investment, particularly if you purchase land at a tax defaulted property auction where real estate is sold mortgage-free for 10, 20 or 30 cents on the dollar of the tax assessed value.
If you’d like to know more about tax delinquent real estate 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! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!
Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.