In the book, Building Wealth, Russ Whitney shares his seven proven strategies that work for him and gave him millions of dollars of profit from deals he generated.
#1. Create value by platting acreage
Make the land ready for platting it. A plat is a map or a chart of a piece of land with present or proposed features, such as lots and streets.
#2. Create value by entitling/permitting
You can increase the value of land by securing entitlements and permits that will allow a builder or a developer to step in and immediately begin construction.
#3. Use of the city's comprehensive plan to buy ahead of growth or infrastructure
Use tools such as aerial photos and the city's comprehensive plan to identify growth patterns, then look for land in areas where growth is likely to occur in the relatively near future.
#4. Create value by improving zone
The value of land will be greater after a zoning change and will be greater after a zoning change and will create a substantial profit margin. For example, you can have the property rezoned from agricultural to a duplex or planned urban development (PUD).
#5. Create value by developing
The goal of development is to improve a platted subdivision so the lots are ready for a builder to buy them and immediately start construction.
#6. Create value by selling to a builder/developer
Get to know the builders and developers in your area and keep records on what type of property they need and what they're willing to pay.
#7. Create value by selling the vision
Selling the vision takes platting a step further. Get the property under contract, consult with an urban planner to determine the highest and best use, then hire an architect to create rendering of what the finished project will look like. You need to create a complete project presentation so potential buyers can clearly see the vision.
7 Strategies for Profiting from Vacant Land from Building Wealth by Russ Whitney
This is very helpful!
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