Updated: Oct 25, 2020
This is the first installation in the blog series featuring land investing. If you haven't been able to ascertain how I feel about the subject based on my previous blogs, I really like land investing!
Given the looming defaults in commercial and residential investing, I really see this niche as one to investigate and explore for viable economic growth and sustainability.
So, let's dive in.
Agricultural Land Investing
Row crop land investments combine real estate investing with some employable knowledge of the agricultural industry. Row crops refer to “land-based commodity” crops, such associated with traditional farming and livestock investing. Investors will have to remain hyper vigilant in paying attention to how farming and agriculture performs in the markets. We also know that tariffs, trade, and other external factors can have an enormous impact on this niche.
"Small" Farm Land Investing
Small farm investing sounds like it's a close sibling to agricultural investing but there are differences. For example, "farm land" typically refers to areas used for timber, minerals, orchards, vineyards, and more. So think scale to really grasp the difference between the two. Both require some knowledge of agricultural farming to be successful, but farm land investing is typically easier and faster in process than agricultural land investing. This is due in part to "smaller" acres being more readily available.
Consider This Before You Invest
It's no secrete that I am partial to land investing in comparison to some of the other strategies I use. However, you must do your due diligence regarding zoning, land use and land restrictions before investing. Check with your county and other municipalities to get this information. Also, you will want to know if your land is easily accessible to utilities and water. All of these factors impact the value of your land investment.
Here are a few more issues to consider:
Farmland in this market, with pending volatile trade agreements, weather, crop health, all can expose an investor to more risk. You may want to consider investing in an agricultural ETF (exchange traded fund). These holdings may mitigate risk. Speak with your professional financial adviser before investing.
Mineral rights are a bid deal when investing in raw land and could determine who can profit from the resources on the property. It is crucial to do your do diligence in this phase of discovery, and thankfully, the information is usually easily accessible.
6 Benefits Of Raw Land Investing
It's a given that every investment opportunity has risk innately involved however, the more you familiarize yourself with those risks and rewards, the likelihood of your success increases. Take a listen to my six reasons for preferring land investing now.
The FED's interest rates, conditions of the market, supply and demand for housing, mortgage rates, the local economy, and new housing construction... all of these factors including lifestyle play crucial roles in how your land investments will perform. Again, I'll reiterate the necessity seek the advise of a financial planner after deciding on this niche, however, for me, the benefits are too good to pass up.
Little to no competition, unlike with traditional real estate investing
own and maintain
Potential for quick profit
Flexibility to build or hold
Potential for passive income
I really believe with the looming housing crisis, due to post COVID-19 housing and leasing issues, land investing will be a great way to safeguard my portfolio against adverse conditions in my holdings. It may just be an answer for you and your portfolio too.
Want more information on land investing? I'd like to show you the ins and outs of real estate investing. If this particular niche is of interest to you, schedule an appointment and let's strategize your investment growth. Money has not left earth, you just have to know how to find it.
Our Corporate Cause.
CEO, investor, landowner and clean farming advocate, Chairidee Smith partners with local governments, "green" farmers, and clean eating advocates to create sustainable, whole foods gardens to create jobs, increase healthy living, diminish the presence of urban and rural food deserts.
American families are food poor and the disparities in accessible, nutritious food options is glaring.
Partner with Ms. Smith and the MoguLIfe family of businesses to eradicate food desserts. Click her for more information.