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!

Re: Another kind of Real Estate investment - Question
 

Yup.

Most lenders don't like vacant land, but if you make enough phone calls, you can get it done.

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. ;)

Ahh...vacant land. What a concept.

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.

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.).

And the first type of property that is liquidated when things get tough.

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.