For those who make a living from land investment, tracking property values
and evaluating trends isn’t a problem – they have analysts hired to perform
those tasks. But for anyone who is just considering land investment in the form
of a small purchase or two, finding land invstment property that is likely to
offer up a decent return can often become a real challenge. It becomes a matter
of being lucky. But there are some steps you can do to make your luck a little
better, and to find those small land investments that are likely to pay off in
big dividends.
Start by admitting that you’re going to have to be a bit of a researcher to
find the best land investment, and that you’re going to have to spend some time
on this process. Don’t worry – land investment isn’t a boring subject at all.
One of the best things about doing your land investment research yourself is
that you get to be nosy. Your quest for land as an investment should probably
start with a trip to your local courthouse. In most counties, you’ll find
listings of deeds that have been filed as well as the county’s assessment of how
much property across the county is worth. And the best news? All this is public
record. You don’t have to be anything special to gain access. You don’t even
have to explain that you’re doing research for land investment, though you can.
Appraisers, surveyors, property owners, genealogists and those doing title
research all call for these records on a regular basis.
If you county assesses, you can start by looking for land cards. Cards will
vary from state to state, but typically include all transactions that have taken
place on that particular piece of property. If it was sold or transferred from
one family member to another, that information will be recorded. You can usually
find the amount paid for the property, but be wary of this information. It could
be that this was part of a larger transaction. Or it could be that this was
“Uncle Joe” selling his property to his kid brother for a dollar. To be sure
what these transactions mean, check the deeds themselves.
The deeds may also be misleading to your land investment research because
some states don’t record the actual amount of the transaction. If you have any
doubts, ask for help in understanding what you’re reading.
After you’ve taken a look at your courthouse records in search of real estate
trends that can help you make wise land investments, take time to visit some
area real estate agents. These are people who work with property values on a
daily basis and can likely give you some great information related to your land
investment research.
Pay attention to government actions. Sometimes, a decision to improve roads,
extend services (water, sewer, etc) or other actions can greatly improve the
value of land in those areas, making them great land investments. But you have
to know those things before they actually happen. If you keep an eye on city,
county and regional government, you can sometimes get clues about land that will
make good investments.
Finally, your land investment research should take you into the area you are
considering for land investment property. Drive around and take note of trends
in the area. Are people fixing up homes? Are there dozens of “for sale” signs in
the area? All these and more can greatly impact whether property in a certain
area will be good land investment property that you can expect to turn a profit.
