Revitalization Metrics Applied To "Vacant Land Analysis"

Hi Prospects & Friends,

When we tend to look at "Revitalization" we only focus it on the metrics of homes, but one can apply "Revitalization" to vacant land also. Recently I bought 2 lots that were heavenly wooded, and now they have been pulled into the neighborhoods "Revitalization" metrics which have caused these lots too sky rocket in their values from what I paid for them, because of the developers building around it. If you carefully look at the picture you will see the wooded land, but you will also see across the street the land has been cleared for new development, on both sides of the wooded land homes are being built. Their are other owners in the wooded land also since these are individual parcels too that will reap these benefits also. So you don't get lost with my explaining in this post here are some clarifications:

• Individual Parcels- Are lots platted on the plat map as identifiers of the owners
• Plat Map- A map your local county assessor has identifying the neighborhoods boundaries and owners. You can trigger this online for free on their site since they attach it to your property
• Developers- Are companies who clear land to have it ready to be prepared for building of new construction
• Vacant Land- Is land that doesn't have a structure on it, but it does include trees
• Revitalization- Is where someone like a builder or developer come in to clear some vacant land, in an already older established neighborhood to make it more better quality and new again. They either tear down the older homes that are for sale, or clear land that is still available to push the older homes to skyrocket in value so these owners will sell. This method can become very tricky if the neighborhood doesn't already justify a good location or good rated schools. So because developers and builders already know this metric, they from the start tend to pick neighborhoods that will deliver these results instantly. 
• Builders- They build the structure on the land whether its a home or commercial property
• Built Out- No more land available to use for building, and if this occurs, and you just happen to have some wooded land in this neighborhood be prepared for developers and builders to offer you money for your wooded land since it's the only thing left that they have been "pushed to build on". If this does indeed occur, you don't have too sell your wooded land to these developers or builders. You can like me continue to watch it grow, and keep it for retirement and put a house on it yourself eventually to live in or just to rent out. 

Once the developments start to occur then any wooded land surrounding these new developments will go up in their value too. So to understand how to start with trying to benefit from wooded land as an investment ask these questions to yourself:

• Is the location near major roads or highways that are easy to get to like gas stations, stores, churches, schools, recreation, and employment?
• Is it near good rated schools or very good schools?
• Are the homes in their older than 70+ years old that will indeed need to be torn down and rebuilt eventually because of their age?

These are just some few questions I shared with you I apply, but every person is different and may have a better way in applying other metrics that work better for them. 

So in conclusion I'm planning to build on this land in the future once all the homes around it have been built to new from old and the neighborhood will have been "Built Out" again. I only decided to venture into wooded land recently, because with the way the market has been going, I wanted an investment that didn't really require much of my attention but still yield me good returns without putting in much effort, since I engage in other real estate activities. What I mean by needing little of my attention means this wooded land:

• Is wooded and I don't have to worry about cutting the grass which makes an expense. I only pay annual taxes, and their not much since I bought this land in my "investment parameter budget metrics"
• I don't have to check on it on-going because of it being rented. The only time I check on it is to see if more new development has occurred around it, then I run my numbers and use my i=v/r equations coupled with the gross rent multiplier. I go out to see the wooded land about once a month, and sometimes I may go about every 3 months just depends on what activity I find online that has triggered me to need to view it asap. Activity means in this case, if apparently an agent has listed a "wooded" lot for sale in my neighborhood, or the agent has listed a cleared lot saying "being prepared for newly built home", or the agent saying this "older home is ready for tear down to be newly built into a new home" All this can be worded different, but key is staying on it like as if it was a "rental investment", because if your careful and apply smart metrics you can indeed make a good future retirement out of just buying "wooded land" and later selling or rebuilding on it and renting it with its new home or just moving in it to live after its price has skyrocketed because of the "Revitalization". 

Remember key is to just be paying the annual taxes and nothing else on your wooded land. So if your wooded land happens to have more than annual taxes to retain it as an investment, then it would be wise to pass on it, I know I would since that is one of the alerts I have on my "Investment Parameter Budget" analysis. Your list can be whatever makes your budgeting for the land work, but their are some key metrics that one should apply when necessary to understand and this post touches up on some of them to get you started with your analyzations. I also apply no flood zone metric on my lots, which affects your value dramatically if indeed it has to be sold & its in a flood zone. So don't engage in buying wooded land if you fully don't understand how too, because owning wooded land you can't sell is even worse if you couple it will expenses you could of avoided by just carefully doing your research on it or just hiring an expert in this area of real estate. 

Merry Christmas & Happy New Year Everyone!