How Real Estate Investors Can Help You Land a Land Sale
Selling land? With a house, a residential broker is a cell phone call away. With a commercial building, you may call a commercial broker. Or you may try to do it yourself. But especially for land, where a property’s value is based on potential, the process from pricing to closing is more complex. Deals often fall through for economic or environmental reasons. There must be a better, easier way to find a buyer for land. Of course, there is. Particularly for land, real estate investors can provide a quicker way to sell for cash, saving carrying charges such as taxes. Here’s a primer on the pros, and some cons, on selling land to a real estate investor.
The real estate investor as buyer
When you sell your land, you will probably end up talking with people who rarely, if ever, buy property. This is a once or twice in al lifetime transaction for them. It involves a lot of money and bureaucracy and takes them into territory they’re not used to being in. They may run a business, so they’re used to deals. Still, they’re experts in their field, but full of uncertainty when it comes to buying land. That can lead to a rocky process. Real estate investors bring expertise, experience and economic benefits. As the leader of Handsome Homebuyer, a real estate investment firm, I’ve closed hundreds of transactions for all sorts of land, as well as houses and commercial properties. Buying property is my business. And not just one type of property or land. I’ve bought more types of land than most people can name. Selling your land to a real estate investor can save you time, trouble and even lead to a cash deal that gets you what you want when you want it.
Types of land
There are so many types of land. How do you find the right buyer? A real estate investor doesn’t focus on land they will use directly: That can lead to the ability to buy various types. While each type brings its own problems and promises, investors often specialize in wider ranges. Handsome Homebuyer, for instance, looks for and does deals for many types of land, such as:
- Vacant lots
- Undeveloped land
- Agricultural land
- Animal farms
- Infill land
Whatever your type of property, it’s within our wheelhouse, although we specialize in Nassau, Suffolk, Queens and Brooklyn. That geographic focus is a key element for us. When you reach out to real estate investors, make sure they are right for the land you’re selling and your land is right for them.
We have cash
Why should you talk with real estate investors for land sales? It’s just a fact that big sales are easier, quicker and more certain when your buyer funds it with cash. And it’s a fact that few people or businesses have the cash on hand to fund transactions for land. Business people use their cash reserves for their business. Real estate investors have the cash, which means the money is there to start. You don’t have to go through a dance with funding partners to find the funds. And you don’t have to worry the land deal will fall through due to lack of funds. Go where the cash is. Handsome Homebuyer money waiting to be deployed in deals. The cash is there. The deals will follow. With others, any cash they spend is money they could use for their business. This is our business.
We know zoning
When you sell land, you may think you’re selling a property and, of course, you are. But you’re also selling potential: what can be done with it. And that means zoning. Handsome Homebuyer, as well as some other real estate investors, knows zoning. We can figure out the highest and best use of your land under existing zoning and even whether rezoning is possible, although difficult. Why is that good for you? We will look for every way to add value to your property, even potentially investing in efforts to improve zoning. That lets us pay you more and, in some cases, assume the risk and even cost that can go with zoning issues.
We don’t have bureaucracy
When you find a typical borrower for a land purchase, that borrower frequently seeks a mortgage. After all, they want to invest their money to generate income. That means banking or borrowing from some source. And that means bureaucracy, banking approvals, processes and procedures such as months of delays. Since banks do more deals for houses and commercial structures, land transaction approvals can take longer. Even a fairly little deal can feel like the Louisiana purchase. With a real estate investor, like Handsome Homebuyer, we are the buyer not a borrower. What we say goes. We don’t need permission. Some real estate investors only do occasional deals. We do hundreds. Closing transactions is at the core of what we do.
Real estate brokers focus on buildings
While it is conceivable that you’ll find a broker who specializes in land, that is not that different from finding the proverbial needle in the haystack. Brokers typically specialize in selling houses or commercial and industrial properties. With a house, brokers are everywhere. The marketing infrastructure is in place. It’s just harder to find brokers with expertise in selling land, so the typical method of list, look and lock in a deal is just not as practical. Plus brokers take a commission, which can be even higher for land than homes. Real estate investors like Handsome Homebuyer can provide a solution without added cost.
Selling yourself to traditional buyers is costly
Let’s say you want to sell your land yourself to traditional buyers, such as individuals and businesses. DIY has a certain appeal, saving money and control, but it also brings work and cost. You will have to handle everything from photography to pricing, marketing to making the deal and vetting and dealing with potential buyers. And it’s just not your expertise. It may work out, but it may take longer, lead to a lower price or fall through.
Simpler can be better
However you approach the sale, on your own or with a broker, simpler can be better, saving time and money. Selling to a real estate investor is simply an easier, quicker and potentially better process. You can typically close much more quickly, which saves time and money, eliminating carrying costs such as taxes.
What investors are best for you?
On the one hand, traditional buyers typically are looking for one type of land. That can be the case with investors. Handsome Homebuyer has closed on a long list of deals in Nassau, Suffolk, Queens and Brooklyn. If you are selling land in Arizona, find someone with experience there. If you’re in the New York metro area, Handsome Homebuyer has the track record, the time and the cash to close transactions.
What’s the downside?
Nothing is perfect. While there is an upside to selling to real estate investors, there are drawbacks. If you look to sell your land for cash, and specifically to real estate investors, you will be dealing with qualified buyers. It’s, however, a smaller universe than the world at large. You have to find the right buyer, the right price and the right process. In the end, all it takes is one buyer. It’s probably at least worth looking into real estate investors. If you think Handsome Homebuyer might be right for you, we hope you’ll reach out to us.
How Handsome Homebuyer can help you
At Handsome Homebuyer, we regularly close on deals. We have a process in place, along with people to move it along from evaluating to zoning. If you reach out to us, you won’t have to worry about snags along the way. We have dealt with all sorts of difficulties and overcome them. This is our business. We know what we’re doing, how to value your property at its highest level, even if that involves additional investment. Reach out to us and, with a little luck, you will be on the road to reaching the destination of a deal that will please you and give you cash in your pocket sooner than you thought possible.