There is almost no competition when you are investing in land, particularly if you concentrate on rural areas and tax delinquent land. When I say “tax delinquent”, you may have some apprehension, because we are conditioned to believe that tax delinquent usually means useless. The truth is, while it does come with some low risk factors, tax delinquent land can be a great investment, especially when you know why and how you should get down in to business with such real estate.
As a real estate investor, I have made lots of money by using my own investing techniques, which are part of the Land for Pennies system. I have been tracking down owners who are either reluctant to or cannot pay their property taxes, and inquiring from them if they are willing to sell their land. Non-tax paying landowners are likely to sell for very low rates, and if you can catch the deal before it goes up for auction, you have scored an ace. Using mass marketing techniques such as sales letters, web sites and even direct marketing to get my message across, I have managed to beat the county tax liens and tax deed auctions many times.
So, why invest in land? Because land investments require very little knowledge about real estate, except to know that the title is clear and it can be sold without problems. Unlike houses, where your skills are put to the test with searching for a variety of possible damages, land can only be a bad investment if you don’t check where the land boundaries are and collect enough information to know what’s allowed in the region and what’s not (when it comes to how much can be built on that particular land).
Many are put off buying tax delinquent land simply because they have been reading and hearing about how it is all junk. While putting forward a strong contradiction, I’d like to emphasize on the fact that tax delinquent land can be a great investment, when you know what to do. The secret is not in whether it is a good buy or not, but in getting the information and techniques right. Usually, when you’ve got the system all figured out, you know the seller will call you – which means, you have ample time to go down and check out the land before offering a suitable price for the land.
Your initial instinct should be to see how much of the land can be built upon; because this is what you are buyer will be looking for too. Generally, tax delinquent landowners who contact you directly can provide clear, marketable property titles.