Anybody taking a look at investing in a Land Financial institution (i.e. blocks of vacant land)?

MrCheapo wrote: ↑Tue Sep 03, 2024 7:20 pm
The place I reside in CA there are many empty blocks of land promoting for a fraction of what they have been going for 20 years in the past. That is as a result of they’re close by areas which have been hit by wild fires and other people and insurance coverage firms have fled. It is a traditional emotionally pushed sentiment that creates great shopping for alternatives. These are nonetheless pristine areas inside just a few hours of main metropolitan areas however the price of hearth insurance coverage is $5K+ for $300K houses and residential insurance coverage is similar. And it is nonetheless California so fascinating at many ranges.

To diversify exterior of simply shares I used to be pondering of shopping for a number of adjoining blocks for about $100K and simply sit on it for a decade if wanted and reevaluating the scenario by promoting or constructing a get-away residence.

I determine my annual prices can be simply 3% as follows:

$1K property tax (1% of buy worth)
$2K to take away the hearth dangers required by the county

to op:
query:
1
100k “every” and shopping for a number of = 3 or extra?
(do you could have 300k in money to purchase and sit on for 10 years???
Mortgage/mortgage or money? (supply of funding/mortgage)?
2
Do you could have expertise growing vacant land for revenue?
Do you could have the “working capital” (heaps) to do that?
3
what would you could have earned with 100k for those who invested it in your individual market based mostly monetary portfolio in 10 years, vs if the “vacant block of land” stays or turns into unsellable, except for a similar 100k or much less 10 years from now?
4
If certainly one of these “vacant heaps” is in an space/neighborhood of houses (subsequent door), are there any of those houses on the market? How lengthy on market on common? Common “curb worth” promoting / gross sales worth? (what they offered for, not what they’re asking)??

** Word: if these “vacant blocks of land” had very constructive revenue projections, main {and professional} land builders would have already purchased them up. Or in a short time as soon as in the marketplace on the market, usually earlier than they’re listed or identified to the general public. What’s normally availble to the general public, and stays for a time, are the “leftovers”, “cash pits”, “white elephants”, and so on.

j