Benefits of buying raw land?

What are the benefits of buying raw land as an investment instead of using the money for the land and leveraging it to buy a rental property and rent it out? Pros and Cons of raw land?

I buy raw land close to cities that have not reached my area yet. I buy raw land for future value and possibly to sell to a developer in about 5-10 years. I am a small time invesor so I try and buy land that is about 10-20 miles away from a city so they can build to me. You have to keep the tax current on the land, until you sell it.

Once a city has built to me my raw land goes up in value. Also if the utilities are not built out that far the city will do so, even if you are accessed a tax to cover the utilities. I don't bear the cost alone where as if I decided to develop the land myself I would have to pay for the utilities to get to me. If I sell to a developer I normally have doubled and sometimes tripled my investment.

Raw land will not appreciate as fast as it would if you built a house on it.

If you own the land free and clear and depending on the value of the land the most I have been able to finance or refinance land for has been approximately 50% LTV.

My strategy is to have about 3 of these raw land projects dome out per year. So I try and purchase about 4-5 per year and get them as cheap as I can. I try to by about 5-10 acres. That is a pretty good size lot for a developer.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Raw land is the next hottest property in the United States.
Buying homes has escalated and a owner can build slowly, without high costs. I have made $$$ on raw land and about to make more.