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These Overlooked Real Estate Investments Are Great Choices Today

Posted by Barry Lenson on 8/10/2009 at 10:08 AM
Posted in Real Estate Investing

A smart older real estate investor once told me, “In lean markets, buy raw land and hang onto it. Land can’t burn down. Nobody can steal it. If you’re patient, its value always increases. And you don’t even have to insure it.”

That’s wise advice. Yet undeveloped land isn’t the only smart real estate investment for lean times. Here are some other investing options that can generate self-sustaining income while they increase in value.

Buy rural or suburban land where you can build and operate a self-storage facility until the market strengthens. Self-storage facilities are great “placeholder” businesses that generate income from land until it can be sold at a profit. They are cheap to erect, they don’t require much heating or air conditioning - and they generate good profit per square foot. To learn more, attend the Inside Self-Storage World Expo that will be held from October 5-8 in Washington, D.C.

Buy a modest business located on a piece of land that is appreciating. It could be a grocery that’s adjacent to a mall that is expanding, or a liquor store that’s in an urban area that’s gentrifying. Look for a business that’s profitable enough to cover its expenses (utilities, property taxes) until you sell it. Consider buying a business from owners who are willing to run the business for you until you decide to sell it. It’s a win/win proposition: They get the money from the sale of the business immediately, and you get experienced people who can run the business until you sell it. To learn more, investigate The Art of Buying a Business program from Trump University.

Put up a parking lot in an urban setting. Parking facilities generate more income per square foot than most people realize. According to a recent article on Gaebler.com, it is not unreasonable to expect a modest urban parking lot to gross as much as $6,600 a day. If you want to learn more, subscribe to Parking Today Magazine.

Lease vacant retail space and sublease it to Pop-Up stores. Pop-up stores, a hot trend, appear in vacant stores during peak selling months - then close down and disappear. And they are not just Christmas or Halloween shops. This summer, big retail players like Brooks Brothers and Hermès have been opening pop-ups in upscale locations like New York’s post Hamptons. One problem? You’ll probably want to avoid leasing mall space for this purpose, since mall managements generally exert tight control over tenants, signs, hours of operation and more.

Those are only a few good choices for recessionary times. If you know more, please take a moment to make a comment on this blog post. Let’s share our ideas and get ready to make a lot of money when this recession turns around.

Barry Lenson is Executive Editor at Trump University.

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11 Comments

Posted by Rachael Sutton #1253595 on 08/10/2009 1:49 PM

Mr. Trump, I can't speak from experience, but along those ideas, I can brainstorm.

What about using your vacant land for events such as a flea market, a farm market, starving artists and crafts market by renting booth spaces? Or you could coordinate events (maybe not quite as extreme as Woodstock) such as storytelling, music, poetry, art, drama festivals to add enrichment to your community. Primitive camp sites. If it is a nice open area, maybe a hot air balloon launch, if it is hilly, bike and ATV trails, if it is woods and brush, paint ball competition. In agricultural areas, you may be able to lease it to someone who wants to farm, or plant hardwood trees. You may be able to work in cooperation with conservation organizations to plant it to prairie, or to create a songbird sanctuary, or butterfly gardens. Plant it to corn and create a corn maze then charge admission. Design it into formal or unique gardens. Lease garden space. Start a club and charge admission: kite flying, model rocket launch, remote control airplanes, remote control car racing.

If your land is scenic and relatively remote, another possibility would be to purchase small yerts, cabins, or mobile trailers for week end get aways. These could be set up to be relatively movable.

Of course this is just a starting point. We are all only as limited as our vision.

Posted by user28112 on 08/10/2009 5:42 PM

To you Trump and to your great family: Hi.

You said about everything in a nutshell. Just as a reminder, as is taught in Trump University: before acquiring a property or business be sure to work the numbers. It’s all about cash flow.

Sincerely, your friend, a "Revolutionary Entrepreneur"
Nimrod (Gen. 10:8-10)

Nimrod Erech Nimrod, Ph.D.

Posted by member11003788 on 08/11/2009 6:27 AM

A smart older real estate investor once told me, "In lean markets, buy raw land and hang onto it. Land can’t burn down. Nobody can steal it. If you’re patient, its value always increases. And you don’t even have to insure it." That’s wise advice. Yet undeveloped land isn’t the only smart real estate investment for lean times. Here are some other investing options that can generate self-sustaining income while they increase in value. Buy rural or suburban land where you can build and operate a self-storage facility until the market strengthens. Self-storage facilities are great "placeholder" businesses that generate income from land until it can be sold at a profit. They are cheap to erect, they don’t require much heating or air conditioning - and they generate good profit per square foot. To learn more, attend the Inside Self-Storage World Expo that will be held from October 5-8 in Washington, D.C. Buy a modest business located on a piece of land that is appreciating. It could be a grocery that’s adjacent to a mall that is expanding, or a liquor store that’s in an urban area that’s gentrifying. Look for a business that’s profitable enough to cover its expenses (utilities, property taxes) until you sell it. Consider buying a business from owners who are willing to run the business for you until you decide to sell it. It’s a win/win proposition: They get the money from the sale of the business immediately, and you get experienced people who can run the business until you sell it. For more information, visit this site: http://personalmoneystore.com/Cash-Advance/

Posted by member1982261 on 08/11/2009 10:23 AM

This articles has a point, however I don't see many opportunities for real estate investors here in Canada, as the housing bubble here is raging in full force.

John,
http://www.canadabanks.net/Mortgages.aspx

Posted by Rachael Sutton #1253595 on 08/11/2009 3:13 PM

Mr. Lenson,

The key question of land use is location, and next zoning. For example, if your land is in the middle east, you may be able to generate a great income from a simple vegetable garden - thanks to our Governent anti-Poppy programs!

Posted by Rachael Sutton #1253595 on 08/11/2009 8:05 PM

Mr. Lenson,

A few other options for rural vacant land could include checking for and using any natural resources such as ponds, streams, springs, gravel, and minerals. Organize hunting parties and stocking game such as pheasants. Raising animals such as Buffalo, Llamas, etc. Put up a barn with horse stalls or kennels for people to board animals.

Fence in your property and purchase equipment to shrink wrap. Then offer "toy" storage. Shrink wrap seasonal outdoor items such as speed boats, snow mobiles, etc.

In more populated areas, create a collection of unique works of art or anomalies that people would be willing to pay to view - examples, worlds largest ball of string, auto graveyard, junk sculpture, chain saw sculpture, etc.

Posted by Rachael Sutton #1253595 on 08/11/2009 8:49 PM

Oh, and like the newsletter mentions. Vacant land may also be ideal for bill boards or you could place a tower on it to lease for communications. It may also be ideal for alternative energy generation windmills or solar collectors.

Posted by member1815053 on 08/12/2009 4:05 AM

I have a little farm and this writing arised new insights how I could better get benefits from my farm that is beside a river and near a lake. Imagination is a limit. There is plenty of watering possibilities for example. Very good writing, thank you about these ideas.

Posted by member11005003 on 08/13/2009 3:51 PM

Investors who bought raw lands in prime areas, intended to build prestigious projects in trend during real estate boom. Land/Building costs etc were high during projection and investors decided to proceed with development due to the sudden economy downturn when market plummeted.

Being a developer or investor, will you proceed to build the building or hang on to the raw land in view of potential returns when land prices escalate in many years down the road? Or, proceed to build the desired prestigious units at 1/4 projected cost earlier.

Many of the developers decided to hold on or cancel off-plan development in view there's no buyers with the over flooded of ready units, with the golden equation : Current Supply greater than demand.

However, they've also forgotten that when there's crisis/threat, it also poses opportunity.

Posted by member11007470 on 08/26/2009 5:27 PM

True. My family invested in a plot of land in Temecula, CA 20 years ago. We paid just under $60k with a 10 year Mortgage. Today the 1.33 acre parcel can fetch anywhere from $5-600k! We are exploring options to develop it now. And once complete...boy oh boy!!

Great article

W Lewis
VOYAGEHOMELOANS

Posted by member11000083 on 09/27/2009 9:48 AM

I'd take your idea further. In times like these, if you have property already perhaps these kinds of ideas can drive low cost additional cash from the same area.

Blake Ratcliff
www.apartmentmarketingsolutions.com

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