All Forum Posts by: Greg C.

When it comes to land, a one county area is probably too small unless you have a niche and know it well. 

Pat Porter, who has a pretty good Amazon book on land flipping suggests that setting your personal geography is one of the most important steps in the process of setting up a land investment business. I think a 3-5 county area is more realistic. Personally, I also have investment targets outside my state.

In land investing you need to have a clear vision for the type of land you want to invest in. Are you looking to flip small residential lots, large rural parcels, landlocked properties where you establish an easement, commercial land, etc. etc. Once you have established this, then you can begin to think about sourcing and your budget. 

Florida is a tax lien state, so in my opinion, that will probably be one of your best ways to get started. Try investing in some liens on land that fits your criteria and if you are lucky, some may mature. Otherwise you need to do some marketing and connect with folks to find land deals that aren't already at or above market value unless you plan to develop the land. You will also need to learn (if you don't already) about zoning regulations and restrictive covenants in your area. These can make or break a land deal. Many properties also have restrictions because they contain wetlands or environmentally vulnerable habitat, which is a particular problem in Florida. Some land may also be contaminated, so be wary unless you want to pay for costly environmental site assessments. Lastly, keep in mind that getting title insurance on land can be surprisingly more complicated then you may expect and not every parcel of land is sold with a 100% interest stake.

The problem with Sarasota County in my mind is that it is a high population area with limited tracts of undeveloped non-wetland property. Your best bet as a land flipper would probably be to flip residential or commercial lots, but the competition is sure to be far more fierce then if you were operating in another part of the state. If you want to follow traditional land flipping strategies which aim at rural parcels of 20+ acres, then some of your neighboring counties like DeSoto County or Hardee County may yield better prospects. Again, tax lien investing could be a quick way to get your feet wet (no pun intended) in land investing in Florida. 

Maybe, or maybe not. 

To me, the first and most important factor is the size and shape of the parcel in question. If it is elongated and stretches along the right-of-way of the railroad then I would be less inclined to purchase it. If it is a bigger lot with some acreage between the railroad and the build site (or sites) then I may be more interested. 

After establishing this, the next most important aspect of this land would be its zoning and restrictive covenants. Generally, I would think that commercial real estate (especially B and C class industrial/warehousing) would be less averse to the close train proximity then residential. But if the area is popular enough, even residential may be a good use for the site. I would then want to know if there are any access easements to the rail line or restrictive covenants on the property which would negatively impact my ability to develop the land.

Lastly, my concern would be environmental. Has this site been a dumping ground for industrial wastes over the many decades the railroad has been in use? Were there any incidents in the vicinity of the track? Etc.

Hi Winnie, NC State Law dictates that every county needs to maintain a GIS parcel directory. For Wake County, this directory is available at:

https://maps.raleighnc.gov/iMAPS/

As a precursive search, you can type in the address or parcel number of the property you are interested in and then click around through the neighborhood. If you see multiple homes that are owned by LLCs, or other business entities that are not the builder or a mortgage company, then the neighborhood is probably safe. Though, as a follow up, you will want to enquire with the listing agent to make sure HOA bylaws have not recently changed. Still, the GIS is a great early screening tool that will help you save some time in your search.

Understand that the Triangle is one of the hottest real estate markets in NC, if not the whole Southeast, and many of the newer build communities have placed restrictions on investors because they are trying to maintain a "premium" community with traditional higher income homebuyers. Many of these homebuyers work in the tech industry, and want a community that matches their income bracket and lifestyle. 

If you are keen to own and rent out a large new-build SFH, then you may want to consider building one yourself on a parcel that is not tied to any HOA or subdivision. These are still possible to find, especially if you work with a good broker or are tied in with the local REIA. It won't come cheaply though, but nothing in the area really does. If you want to get in on some other markets in NC that may give you better cash flow with less restrictions, Burlington is up-and-coming and there are still some good opportunities in the area relative to the Triangle. I myself am thinking of buying some property there in the coming year. It helps that it is halfway between the Triad and the Triangle, so you get people from both markets who are interested.

This is an area I also know pretty well, having worked there for multiple years. As @Joel Florek says, the sad truth about Michigan City is that it is overflowing with potential that will probably never be realized. Without trying to be harsh, but being honest, it is almost a mini-Gary. There is lots of very poor quality decaying housing stock, underperforming commercial areas, poor land use, a bad road network, and not a great job market compared to other NW Indiana cities unless you are a warehouse worker (as I was at the time). As Joel says, I would much rather invest my money in one of the neighboring communities...and if I ever moved back to the area, I would also prefer to live in one of those towns as well.

But, is there opportunity in Michigan City? Probably. It depends what your investment strategy is. I would think that most older MFR and SFR properties are risky due to the quality of the housing stock and potential tenant issues that may arise. But if you are used to dealing with these sorts of properties and have a good local PM, maybe it could work out for you. There are also some good opportunities on the outskirts of town South of US 20, which is nicer in general. Nearer to the lake on the flanks of the downtown is also better to an extent.

I also see some potential for commercial development along Franklin Street and even new build MFR if you can get a good deal on land South of US 20. There is also a outlet mall and casino in town, but both of them seem to struggle compared to other similar facilities across Chicagoland and nearby SW Michigan. There could be some potential for development around these locations, but I would still be cautious. Truthfully, if you are interested in the region, I would go further to the East and focus on LaPorte and New Carlisle which too me, at least, are more desirable towns that are still relatively undervalued.

I totally get this. Like many other folks, I too got roped in by the gurus. Since that time, I have gone my own way and charted my own path. In your case, you have an amazing opportunity already having 100k in capital. Think deeply about all of your options, and map out where you see your business in 5, 10, even 20 years from now. Also, think about the type of investment that you are interested in. Most people are focused on residential, but there are lots of options out there. I have been getting my start with vacant land flipping (non-wholesale), and have had some early success. There are lots of other options out there besides being a residential landlord on a C/D property. Research more than one, and then you will definitely feel more confident in whatever decision you make.

 ^This, most FL county appraisers maintain a database. If not that, then most have a GIS parcel viewer. Only a few very rural counties are without either 

100k is enough to buy a piece of vacant land and develop a cash flowing business like self storage. Check out the commercial part of the forum where knowledgable folks share details on this sort of real estate.

Zip codes are a misleading metric, as they have no geographic boundaries. 

They are so bad that the census bureau publishes a seperate Zip Code Tabulation Area (ZCTA) file that tries to fix the geographic inconsistinces. This means that the zip code you see on a map, which is based on ZCTA, may actually slightly differ from the actual zip code of a property you may see on the MLS or listing.

Long story short, you should never be basing where you invest based off of the notion of a "good zip code" as there is no way to 100% reliably plot zip codes on a map or deliniate where they stop and another begins. A person may think they are in a prime zip code for serving students, but it turns out that they happen to be in an odd spurious area of the zip code in a C or D neighborhood with little prospects for finding a student tenant.

Instead, you should deliniate your neighborhoods of interest based on street boundaries and local conditions and then map your property to see if it is within the boundaries. College areas tend to have a steep gradiant between prime locations and undesirable ones. So working with a local agent to define custom search parameters is what I would reccomend. Most real estate search engines have customized map boundaries, which makes it pretty simple once you have narrowed your parameters.

I am a vacant land investor same as you at present, though I want to go the commercial route via a scaled approach as @Henry Clark has helped me consider through his insightful posts.

It sounds to me as though you were perhaps too ambitous with this business plan and didn't do due diligence on the permitting process. I would have started smaller with this strategy, and gone through the permitting process before spending on improvements to the land. 

But, without knowing much about the property it sounds like you have perfectly servicable ag land with a well, fencing, etc. You can stay wrapped up in a legal case, losing money and time or you can pivot. There are plenty of other high yield agricultural commodities that can be grown in MI. Contact your local ag extension and learn more about what you CAN grow on your land without permits. Or, consider raising livestock. Obviously, you will need to hire on help, but you would have had to do that anyways. Your only other option imo is to drop your price for the land and take a loss. 

Start small, know your ordinances and zoning codes, and build up with a coordinated and calculated approach.

Edit: Also, if you really want to sell quick I would call up a local auctioneer. Also, there is a trade magazine in IN/MI/OH called "The Peoples Exchange", this magazine is oriented towards farmers and Amish. Advertise in that, and you may reach a more targeted audience.

Thanks @Henry Clark. I have some funds tied up in other investments right now, but conservatively I would have close to $10,000 to start but possibly $30,000-$50,000 in liquid assets depending on how things go the next few months. I am in the Triangle NC market.

I am going to go through your past posts. Thank you, you are a wealth of knowledge.