Some of the most successful investors in the world have one thing in common, investment property. They have a good sense of when the right time to buy an investment is. You can buy the same investments that the most successful investors buy but if you don’t do so at the most opportune time, you might actually loose money on the investment.
One of the classic ways of building wealth is to buy land. Let’s back up for a minute. It’s not actually that simple. You need to have the right timing when you buy land. There is a right time and a wrong time to buy land and the most successful real estate investors understand that. So how does one know when the right time to buy land is? Well, most of the time, successful inverters closely guard their strategies. That’s not necessarily the case right now. Smart real estate investors agree that now is the perfect time to buy land.
We are in one of the best “buyers markets” of recent times. It’s not uncommon for land to be sold for much less than it is actually worth right now. Because the real estate market so soft right now, you as a savvy investor can negotiate some incredible deals. If you are a good negotiator, you realize that many land sellers are struggling right now. You can use this to your advantage. During a strong real estate market, it will probably be pretty difficult to haggle the purchase price down much. Fortunately for those who are looking to invest in land, the real estate market is really in the tank right now.
The smart approach to buying land at the best price is to offer many thousands of dollars less than they are asking. I mean really low ball their asking price. If someone was asking $50,000 for a parcle of land, I would offer only $25,000. It takes a strong stomach to make this kind of offer. Many people are simply too embarrassed to do it. Here’s why this is a good strategy. If they don’t go for it, you’re not out anything because you don’t absolutely need the property. If they don’t accept the offer, or won’t at least come close to it, move along to another property. Remember, we’re trying to take advantage of this “buyers market” and make some good purchases here. If they do go for it, you’ve hit a home run and stand to make a huge profit when you eventually decide to sell.
You may end up making dozens of low ball offers on properties before you get someone to accept one. Don’t get discouraged or buy properties that you can’t get for substantially less than the current fair market value. The key to success here is to put the leg work in and make enough low ball offers that eventually some pay off.
