Vacant land is an often overlooked investment opportunity. Vacant landowners in Detroit are usually easier to negotiate with because the owner usually doesn’t have any emotional ties to the property, and in some cases, it was given to them in probate and they really aren’t interested or financially able to invest in vacant land.
The first reason you should be adding vacant land in Detroit to your portfolio is that there is little competition for you as a buyer. Most real estate investors focus on real estate that contains buildings, houses, complexes, etc. because that is what is generally thought of as real estate investments. You can pick up vacant land at public auction, wholesale websites, off the MLS, or directly from owners via for sale by owner websites or by old fashioned mailers. There are only a handful of vacant land investors in Detroit and you should be one of them!
The second reason you should be adding vacant land in Detroit to your portfolio is that vacant land is more affordable overall than traditional real estate. The purchase price is significantly lower than a property with a house or duplex or commercial structure on it. The annual tax burden will not be anywhere near as large as traditional real estate so it will be cheaper to hold on to.
The third reason you should be adding vacant land in Detroit to your portfolio is that there is more opportunity with vacant land. You can consult with us to determine the highest and best use of your piece of vacant land. This means that the property can be built to match the surroundings in the best way possible. It wouldn’t make sense to purchase a single-family home in the middle of a block of duplex properties; you wouldn’t be able to rent it for as much as you would if you bought a single-family home in a block of single-family homes. So, when you own vacant land, you have the opportunity to build the property that makes the most sense for its location. This will be especially profitable if you purchase land in the path of progress. It will be even more desirable in the near future when there are brand new buildings, developments, shopping plazas within walking distance. Building where there is progress will fetch higher profits!
The fourth reason you should be adding vacant land in Detroit to your portfolio is that it is an extremely low maintenance investment. You might even be lucky enough to have the municipality or property owner’s association mow the lawn for you for an annual fee, and if the municipality does it, it can most likely just be added to your tax bill. Or, if you want to take care of it yourself, you can save even more money. If you purchase real estate with a building, then there are costly inspections and regular upkeep so the building doesn’t deteriorate from neglect.
Long Distance Ownership
The fifth reason you should be adding vacant land in Detroit to your portfolio is that it is the easiest real estate investment to make from a distance. Technology has advanced enough that you can know what your property looks like without ever seeing it! You can see the status of the neighborhood through aerial imagery from your favorite search engine and know if it would affect the property value or not. You can also research the history of the title, any taxes or liens owed on the property, and complete the closing from the comfort of your own home.