Real estate investors and wholesaling CEOs are on the constant hunt for the next hot spot and sector which will boom. So is land it?
While there are certainly still endless opportunities for wholesaling properties across America, some real estate investors have recently been heard grumbling about the amount of competition they have been facing in certain pockets of the market and in certain niches.
Still, it is widely understood that the residential housing rebound is just now taking off, and still has quite a number of years of growth left in this cycle. We’ve even seen a plethora of home builders take their companies to IPOs this year. At the same time other analysts have been posing industrial properties and retail sectors are rebounding and will be hot commodities ahead.
However, there are a variety of factors that point to land as one of the best niches for those wholesaling properties ahead. For a start it is still dirt cheap right now. While some big funds have also pointed to land as the next boom sector there is still far less heated competition for land which can offer the chance for better bargains and spreads.
There is also a huge need for land ahead and those that have it often have a pretty poor handle on marketing it. This means huge opportunities for those that have a good handle on wholesaling marketing and can come in to bridge the gap.
There are many ways to profit from wholesaling these properties. There are still plenty of in-fill lots to be scooped from the last boom. This can be of particular interest in hot communities in rebounding areas which still have strong financials.
Home builders desperately need more land to fuel future growth, and they know it is key to lock in spreads now to prevent getting priced out of the game later.
The second home market has been growing again too which offers a cash heavy end market often willing to pay well over cost for well marketed lots in new communities. This is on top of the affluent pool of executives currently seeking to build custom homes in high end areas.
Commercial land shouldn’t be overlooked either. There are currently many municipalities scrambling to readjust their layouts with new commercial and mixed use zones. Some local governments are offering free land, tax breaks or even seizing property with eminent domain to give it to those that will use it to increase their tax revenues and create jobs.
Of course, if you are just getting into wholesaling make sure you are up on the different elements you’ll need to watch out for when it comes to due diligence. As always with wholesaling properties remember your key to success is often in your buyers list, so this may be your first step in unearthing profits in land.