Should You Invest In Land in 2022?Nov 14, 2021
I was out of town this past week and one of the gentlemen said, geez, if I would have bought 20 acres, you know, in my hometown, when I was growing up 15-20 years ago, think of how much money I would be sitting on!
Well, the truth is, you need to buy something now because you're going to say that in 15 to 20 years, Down the road. So maybe your strategy is I'm just going to buy this to hold it until another opportunity presents itself because there's also the strategy of, Hey, I could do a cash-out refi, or I can do a HELOC on that and get into something else if there's enough equity in that property.
Right. I think there are a few different ways to look at this.
It depends on the person and depends on their goals. Some people might not have time on their side to sell and sit around. Some people might want to just keep their property or get cash. Because that's where they're at. They're looking for retirement money.
And maybe they're in a position that they can't get more loans down the road.
Now you can do these two different ways. You can have you and your spouse on the loans together, and you can get 10 loans or if your spouse has income and you have income, you could potentially get 10 loans yourself, but you max out at that, those at that 10 loans, after that you'd have to go commercial or pay things off.
So, people like to take advantage of that financing cause they usually have better terms 30-year fixed a lower interest rate than something that's commercial.
We could talk about this for a long time now because Chase and I are working on a deal right now. Where that's the case. You found yourself making money. An offer you couldn't refuse on some land. You sold it and you've got to do a 10 31 and I had a listing on a duplex and it's an okay deal.
You could find a better deal. Like if you waited for some of the new construction that we use, But you're up against the clock. Exactly.
So, your exit strategy on this one we're doing together is to park the money, protect it from taxes, reset my clock until something different comes along and then you can reevaluate at that point.