Do you foresee a future where you might be investing in land? As with most financial investments, developing disciplined habits before taking the plunge can drastically reduce the risk involved. Cultivating these eight character traits commonly found in the best land investors can help you increase your long-term monetary returns.
In all relationships—whether personal or business—if there is no trust, nothing works. Your venture into land deals cannot succeed without honesty. For the best long-term results, avoid schemes or trying to get away with things, and opt instead for transparency. Your ROI, in the long run, will be a reflection of that honesty.
We all know that one person who seems to have a firm, calm reaction to every crazy variable that arises. When it comes to transactions as complex as land deals, you can be that person by doing exhaustive research. A level of expertise will help you anticipate every twist and turn in the process. The more knowledge you possess, the less prone you’ll be to risk.
3. Eye on the Prize
A successful land investor has their end goal in mind the entire time. Carefully consider the amount of money you are looking to spend, especially what your initial offer is going to be and how high you are willing to go. Know how long you’re planning to have ownership of the property and take a well-researched guess at how much the property will appreciate over time. Is the gained equity worth the original investment? Having that final number in mind helps you establish your boundaries upfront.
4. Plans Ahead
Land investors armed with industry knowledge can plan ahead. Once you possess traits two and three, wielding both knowledge and a goal-oriented understanding of what you want, you can craft a clear vision for every future step. Having a strategic roadmap is often what separates successful businessmen from well-intended failures.
5. Develops a Niche
Prosperous investors always know their niche. Dealing with undeveloped land is already a niche market in real estate, yet this niche can be focused even further based on dozens of factors. For example, specific regions where you are making purchases, the proximity of your land from metropolitan areas, and more will all change the process and final outcome of your deals. Master specific areas before moving on to bigger markets and projects, and you increase your likelihood of success.
One of the biggest setbacks with young or unseasoned investors is having unrealistic expectations. Being aware of what’s possible in a deal will help dissuade missteps and keep you from turning big dreams into gambles that fall through.
7. Uses Risk to Their Advantage
Even the most successful land investors in the world acknowledge how risky every investment is. For this reason, it’s essential to have a thorough comprehension of the risks involved with each land purchase. When viewed with the right win-loss mindset, risk becomes a powerful tool that can result in an enormous reward.
8. Has a Network
There’s an old saying that you’re only as good as your network. The more people in the industry you know, the more likely you are to be connected with not only potential buyers but also been-there-done-that professionals who can provide crucial insights. Most truly successful people owe quite a bit to those who surround them.
Become the Next Great Land Investor
The list above isn’t the holy grail of land investing, yet it does provide a solid blueprint for the character traits you should be looking to develop in yourself to pursue this avenue toward wealth. With a little bit of brains and a lot of action, becoming the next great land investor just might be in your future.