|
Real Estate Speculation
Only those who will risk going too far can possibly find out how far one can go! ~T.S. Eliot
One area of expertise we bring to expand the portfolios of our valued investors is real estate speculation. Although this is one of the more high-risk techniques, it is also an investment method that can provide the biggest payoff. Speculation is a viable opportunity for both large and small investors.
There are two main areas of speculation- one is undeveloped/raw land and the other is new construction.
While undeveloped land won't provide you the cash flow or tax benefits that developed land can, it can be a very valuable commodity nonetheless. Moreover, undeveloped land is cheaper than purchasing land with property on it. In very basic terms, undeveloped land has innate value simply because there is only so much of it to go around. Who of us hasn't driven past a booming neighborhood and heard an older relative say something like "I remember when that was just a pile of dirt selling for ten dollars an acre, but I just didn't see any value in it back then." It wasn't too long ago that many of the overpopulated areas of the country used to be just small town blips on the U.S. map.
Successful real estate speculation involves a great amount of homework. It's not a matter of driving around until you see an empty plot of land and forking down your money or picking a spot on which to build a series of single family homes. You need to know the overall city or county planning and zoning to best determine the future of the infrastructure. Statewide is constantly ahead of the path of development and we use our key relationships to identify the best emerging markets. SFS does the research required to invest wisely in the path of growth and expansion. We also understand that succesful speculation involves a keen understanding of what value-added components will help make a development the most attractive to potential buyers.
Just as important, we also have the experience necessary in this special niche investment vehicle to match up the right financing with your purchase.
Some of the key benefits to speculation are:
* An opportunity to invest in land in affordable increments
* Significant appreciation potential
* Opportunity for better overall return on investment
* Ground floor opportunity
* Portfolio diversification
* Simplified management (for vacant land)
* Ownership of a tangible asset
|
 |
| Real Estate Speculation |
|
|
|