We have seen a lot of people respond to Instagram or Facebook ads calling remote land worthless, “Why would anyone live or be buying land there?” Boy, are they wrong. I have to chuckle at these comments because that is such a basic way of thinking when it comes to investing.
Of course, everyone goes for the typical city home to rent out when they think of real estate investing. The thing is, not everyone has hundreds of thousands of dollars to do that, nor do they want to take on a massive mortgage in this market.
Well, that’s good for us because there’s a little secret in the real estate game, and that’s rural land investing. Is Buying land profitable? If you have vision, strategy and knowledge of the area, it would be hard to beat the potential returns of raw land investing.
The Benefits of Playing the Time Game
There is a famous Will Rogers quote “Don’t Wait To Buy Real Estate, Buy Real Estate and Wait”. It’s simple and obvious but it’s not uncommon for people to only focus on fast money. Warren Buffet, a famous stock market investor has never spoke highly of people who “gamble” in the stock market. He places his bets in the market for long term investments, the day to day market swings mean nothing to him.
On average, his method has done way better than people who wanted fast cash. Overtime he accumulated massive returns for his patient investors. The same theory works with real estate, especially buying land, rural land. It’s very low cost and has very high potential returns.
Optimizing Your Location: The Buy and Wait Strategy
The below example is Las Vegas Nevada, obviously Las Vegas is a very popular area that had exponential growth over the years. But let’s look at how some historically worthless rural properties way outside the city changed over the years. Rural desert land is very cheap, typically, those are the ones we often hear comments about saying why would anyone buy those. Well here’s why…
What you are seeing above is a perfect example of playing the long game smartly. In the 1980s, a few forward-thinkers saw potential in the barren deserts outside Las Vegas and bought plots of land when most people thought they were crazy. Back then, the circular area you see didn’t even have roads, and parcels were incredibly cheap, especially before 1987.
Some of those buying land secured large parcels for under $5,000, big enough to later subdivide and sell for even greater returns. Fast forward to 2020, just over 30 years later, and the payoff for that long-term vision was massive. Although it took time for the investment to mature, the return on investment potential was extraordinary.
Instead of buying a new car in the 80s, which would be nearly worthless today, you could have purchased several parcels for the same price, and now own valuable real estate. For those who held onto the land, it meant financial freedom for their families or a secure and profitable retirement.
The above picture from Zillow Las Vegas, it is the exact same area where all those cheap vacant lots where. There is very little land left in this zone, before that’s all there was. We could only find 3 parcels of land for sale here, the rest are homes and businesses. These small parcels on Zillow going for $275k are only 0.47 acres, which is uncommon when buying rural desert property, this is because it was once a 2 acre property.
Looking at the history of these parcels, they own 4 of them at this size, the owner parceled them out and now has 4 smaller parcels. This can be a very smart strategy for extra return on investment and the ability to keep a couple for yourself.
Hidden Value: A Clear Perspective
Buying Land, especially rural land is super cheap, it’s probably the cheapest way to get started in real estate. We have sold tons of desert properties to our customers under $5k, a lot of them near the Laughlin NV and in Apache County. Is it possible we see the same thing 30 years from now over there? Time will tell, nothing is a guarantee in life, but the above example certainly worked out for those who invested way outside of Vegas.
From doing the math, those $275k properties were purchased for roughly $14k each close to 1987, even less before that. The owner now has an easy $1.1 million dollars in land at this point. Not bad for some dirt! The best part is, she didn’t have to lift a finger, just pay the annual property tax. Talk about easy money!
On Top of That, Tech Is Making Rural Land More Valuable One of the biggest shortfalls rural land had back in the day is the lack of living standards. There is a reason we all flock together in the city, we need food, communication, work, water and more. The city has it all whereas rural land was really hard to live on back then. Well times have drastically changed when it comes to rural living comfort. Let’s look at some advancements that allow for living rurally better…
The Evolution of Rural Land Living
Back in the day rural land in the desert was reserved for crazy people. There were no luxuries to it but things have changed. Just take a look how these advancements make it possible like a great life way out in the middle of nowhere.
Satellite Internet & TV – High-speed Internet and TV services are accessible everywhere.
Phone – Cellular networks enable you to stay connected with everyone.
Remote Work – A growing number of individuals are now working from home.
Water Delivery – Water delivery services are widely available for filling up your tanks if you prefer not to install a well.
Amazon – Access a wide range of products through Amazon, with drone delivery services soon to be available in remote areas, while currently utilizing local drop-off locations.
Advancements in Solar – Solar energy technology is advancing to the extent that living off the grid is becoming increasingly feasible, with more efficient generators also available. Buying land in rural areas not only can be profitable but also livable now.
So, if you have $20k or less to invest in buying land, you can live mortgage free with almost all the accommodations of the city. You can buy land in remote areas and own it 100% free and clear with a small investment. Grow your own food, build your home, live in an RV and work from home.
Below is some of our current land for sale, as you can see for under $20k, cheap land prices, you can start owning rural land. In the past, we have sold land that exploded in value as companies like facebook built data centers near and even large shipping centers like Walmart which 20x the values immediately.
We didn’t have a lot of these options back in the 80’s, more and more people are choosing to live remote and in rural areas. There has been quite a spike in the popularity of rural land lately. Even many TV shows and influencers are showcasing their off grid lifestyle. Nothing is guaranteed in life, some rural land won’t have the attractive return long term.
Las Vegas obviously is a unique desert area that really blew up on the map. However, there are millions of examples of this same story all over the United States.
This article isn’t any type of financial advice or how you should expect every rural property to turn into a million dollars. But I wouldn’t discount these properties as worthless, it has a great entry price for real estate investing and the possibility of highest return on investment.
Not everyone sees this strategy at this point, in fact very few, but that’s the best time to enter.