Sometimes, buying a property for investment purposes just makes sense. A friend of mine had job that paid minimum wage and managed to save enough to buy a small piece of land. It was two acres near where they lived and it cost £3,500.
I remember that time well. They spent a few hours removing rubbish, they outlined a driveway with logs and hand painted a sign. Two weeks after they bought it they sold the land for £4,750, with a £250 deposit. The buyer was paying £100 per month, at 11% interest. The annual return on this investment was over 20%.
The Key To Success
My friend bought the land for cheap, because the seller needed fast cash. They solved the seller’s problem. My friend then sold the land higher than the market value, because the buyer needed easy terms. Second problem solved. Solving problems is the key to creative property and land investment.
Mobile phone companies, radio stations, police departments and others need hill tops for their towers. The problem is that they can’t tie up their capital buying them. One creative investor found a way to solve their problem.
He got six month options on hill-top properties for a few hundred pounds. Then, when he found those who needed them, he would get a long-term lease signed. They built the tower themselves, of course. With a lease in hand, it was easy to get financing to exercise the option and buy the properties. He invested a few hundred pounds and created years of income.
What Problems Could You Solve?
To solve problems, you have to figure out what they are. Do people need easy terms? Cleared lots? Better access to a piece of property? Smaller pieces of land? The list could go on.
Solving problems is the key to creative property and land investment. If you can solve somebody’s issue, then there’s money to be made.