Daggett Land

1) As the land value goes up it becomes it more difficult to make a good profit in a short amount of time. The risk is higher which requires more investment and more due diligence, so there are fewer buyers. We no longer see the land flippers who were using long escrows to fix the purchase price using small money deposits and then attempting resale the land at a higher price to make a fast profit.

2) As land values go up fewer people have over $50,000 to invest. Once land price reaches $100K+ then the number of investors drops even more. We start to see different types of land buyer like pools of investors, real estate investment companies and developers. Today, it is very difficult to find land under $100k in the Victorville area therefore smaller investors should look for the next $50K area that can double and triple.

Investors can still find good land in the Victorville area, but investors have do their homework. The rush for land has slowed down giving the investor more time to search for land. This slow down has also created more of a buyers market giving an opportunity to negotiate terms and price.

We are now seeing land buyers shifting from residential land to commercial and industrial land. These are typically larger investors, commercial real estate companies who develops shopping centers and industrial parks. They are not looking for buyers, they want leasing tenants so they can build shopping and industrial centers. Other developers improve commercial or industrial land with entitlements and/or buildings. These developers target buyers who are ready to build, lease and/or occupy.

If your a smaller investor do not be discouraged. You may feel that it is too late. Not so... Just like everything in life, there are cycles. The Victorville area struggled for years and now is in a growth cycle. Los Angeles, San Fernando Valley, Orange County, Riverside and so on all had their big growth cycles. It will happen again again and again.

As a smaller investor, you now need to look for the next growth area. It would be great to know the future. Instead we all have to base our decisions on visions of the future. We look to see what changes are in the planning stages, what is happening today and what can happen tomorrow. We try to make the best decisions and hope we are in the right place at the right time.

Want to learn more about land, review my web site. Any questions please call.