So I'm basically building a land portfolio for my small real estate company. My intention is to sell some of it. But at the same time, sell it for what? Dollars? I own some land because I don't want to hold any dollars. With this in mind, why would I want to sell it for cash and take a instant haircut on taxes? What I do need though is more cash flow, so it makes more sense for me to either hold the land or sell it for terms via a land contract. With a land contract I can spread the return over a period of months or years. With a land contract, the buyer makes fixed payments until the land is paid off, after which the land gets deeded to their name. As my portfolio gets bigger, I intend to get more aggressive with sales and marketing, but at this point I'm kind of 'meh' about selling any, so I've been pretty passive. Buy it, or don't buy it.
The above images is one of the parcels I hold. It has both a public road running through it, as well as a creek.
So far I'm enjoying being a land investor, and I think it compliments Bitcoin and cryptocurrency investments very well. Assuming the land has a clean chain of title, the paperwork of buying and selling it is pretty darned simple. That being said, every deal is a unique snowflake, in terms of how the buyer and seller ultimately make the transaction. Some people are more trusting than others. I've had people demand a cashier's check for their land, and I've had some people tell me to send them a check when I get the chance. I suppose some of them really need the money, others are just tired of paying taxes and being contacted by people like me.
One thing I know is that land is one of those assets that you want to own in the years to come, primarily due to rampant inflation. People like Bill Gates are buying up all of the very large parcels of raw land, but the smaller ones it's just not worth it to them, so it's a good area for the little guy to dabble in. I never would have thought hedge funds would be buying single family residences, but they are. You are no longer competing with other potential home owners when you shop for a home. The same thing could eventually happen with raw land.
After all, the WEF says that eventually, 'You will own nothing, and you will be happy'. It's clear they aren't talking about Bill Gates here.
