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.
by Barry Lenson for The Trump Blog
Source: http://www.trumpuniversity.com/blog/post/2009/08/these-overlooked-real-estate-investments-are-great-choices.cfm
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