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Registered ConfUser
Join Date: Aug 2006
Location: Waterlogged
Posts: 23,456
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Another kind of Real Estate investment - Question
Just read thrugh the "flipping" thread, but this doesn't quite fall under that heading.
I live on a nice recreational lake on the Ga/SC state line. Property values have been going up like crazy over the last few years and there seems to be momentum to that trend. Lots of Atlanta people looking for a weekend home or home-site, retirees, Greenville professionals, etc. I'm considering buying a decent lakefront lot ( no house ) that is dockable. The only improvements might be to clear a home-site, install septic and put a dock in the water. Lot values have been holdinig pretty steady at 20%+ per year. Plan would be to hold it for some time (year or two) and sell for a profit....yes, pure speculation. What are the pitfalls? Any challenges to finaincing a lot-only? Interested in thoughts and commments. Thanks! |
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02-01-2007, 12:33 PM
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Non Compos Mentis
Join Date: May 2001
Location: Off the grid- Almost
Posts: 10,593
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Re: Another kind of Real Estate investment - Question
Quote:
Most lenders don't like vacant land, but if you make enough phone calls, you can get it done. |
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02-01-2007, 01:13 PM
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Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
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Pitfall is you might lose your ass, but seeing as how I'm looking for vacant land as well, you might not be a total fool.
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02-01-2007, 01:16 PM
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You do not have permissi
Join Date: Aug 2001
Location: midwest
Posts: 39,831
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Ahh...vacant land. What a concept.
__________________
Meanwhile other things are still happening. |
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02-01-2007, 01:45 PM
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Non Compos Mentis
Join Date: May 2001
Location: Off the grid- Almost
Posts: 10,593
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I'd be more comfortable if you had the cash to buy it. The interest costs must be factored in, and can make the whole idea go South. But parking cash on a piece of property will usually be far better than having it sit in a bank account.
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02-01-2007, 01:59 PM
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Registered ConfUser
Join Date: Aug 2006
Location: Waterlogged
Posts: 23,456
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Cash is an option...or part cash, part HELOC. Definately won't be financing the whole thing. Again, it's not just a typical vacant residential lot...it's lakefront property on a large, nice recreational lake (fishing, boating, skiing, etc.).
__________________
Mike “I wouldn’t want to live under the conditions a person could get used to”. -My paternal grandmother having immigrated to America shortly before WWll. |
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02-01-2007, 02:03 PM
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Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
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Quote:
2 yrs of speculation...risky, but potentially profitable. Buy and hold for a decade or two...not a bad proposition with very good opportunity for reasonable profit. |
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02-01-2007, 02:16 PM
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