Friday, August 5, 2011

The Pros and Cons of Selling Your Raw Land

There are a number of pros and cons associated with one of the most popular types of property that appeal to private land investors nationwide—raw land! The good thing is, most people find (and you might, too) that the cons don’t outweigh the pros. And, in fact, the cons highlight just how magnificently pleasing the pros are. So, that being said, lets start with those pesky drawbacks.

The Cons
• Raw, undeveloped land profits $0. That’s right. Nothing. Nada. As it sits there—either beautifully or tragically distracting—it doesn’t profit you in cash flow or necessity. Yet, very easily, it can cost you in time, energy and money; that is, time and energy to maintain it, and the cost of upkeep, liens and property taxes.
• Because amortization of land versus depreciation is common, tax advantages are far and few between.
• In the world of real estate, raw land is usually considered a bad liquid investment because it takes a substantial amount of time to experience gains.
• The risk of loss on the resale of your raw land can be high if you don’t negotiate the details properly.
• Borrowing against accrued equity or receiving financing on raw land is more difficult than it is with traditional real estate.

The Pros
• Owning raw land can give you a sense of pride and hope; if you’re seriously willing to develop it, you can, in the end, experience the feeling of accomplishment and self-fulfillment.
• If you’re in the market to buy raw land (as opposed to already being the owner of raw land), you may be able to acquire financing with the seller at low market rates.
• Despite the odds, appreciation of value can be achieved if you can map out and implement a plan for the land that is functional, useful, and appealing; that is, a residential home, a needed business for the community, or a children’s park, for example.
• Subdividing your raw land can increase your chance for speedy returns.

It’s a wise decision to consider both the pros and cons of owning this kind of property. Keeping your name on the title deed of your raw land might be beneficial to you and your needs. On the other hand, if you find that you’d be better without the responsibilities that raw land proposes, you should consider selling it to a private land investor. A good private land investor is your one stop shop for all things convenient in real estate. If you’d like to sell your land quickly, if you’d like to get out from under liens and property taxes, if you’d like cash in your hand fast, contact Lucas Properties LLC today to receive a cash offer on your land.

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