Transform an Empty Lot into a Viable Investment

Depending on the location of the empty lot, there are plenty of ways to transform it into a practical
investment opporunity. Real estate investments are one of the strongest forms of building passive income when utilized in the form of rental income. Rental income may require the investor to make sure the property is well-kept, but the income flows month after month without any extra work by the investor.

Build It, and They Will Come

If a potential investor finds an empty lot in a commercial development, it is important to look at the context of the development and the demographic of the people surrounding it. Study the brands, trends and lifestyles of the people who live in the surrounding areas because this can greatly determine the likelihood of continued patronage. For example, a healthy juice & salad bar might be a great start-up to invest in. Drive around the surrounding areas. If there are lots of people jogging outside during certain times of the day, there are health-conscious people in the neighborhood who actively work to maintain a certain personal standard of health. If the nearby grocery stores sell lots of organic produce and less processed foods, this is another good sign. It will take research to figure these factors out, but the work is vital. "Build it and they will come."

Turn It into a Rental Property

Rental properties are high on the list of lucrative real estate investments. If there is no desire to work on a start-up, invest in creating the building and rent it out to other store owners. An empty lot is a breeding ground for any vision. After building a subdivision of storefronts, create a marketing and advertising team to fill up the spaces with suitable renters to bring business. In addition to collecting rent, before long the building will get paid off. Once the building gets paid off, the rental income becomes 100% profit.

Turn It into a Home

While it is important to keep the location in mind, an empty lot may be a great space to build homes or an apartment complex. People always need a place to live. While rental properties aren't the most inexpensive to run, a property manager and a good grounds manager can help to keep daily operations smoothly. The range of work to be completed will greatly depend on the size of the project. If the desire is to build one mansion and rent it out as a space for weddings, receptions, parties and banquets, this project will require a different level of operations than an apartment complex operating on a daily basis will.

Many Opportunities for Success

Nonetheless, there are many ways to turn an empty lot into lots of lucrative success for an investor. As long as there is a clear vision, extensive research and experienced professionals to execute, any real estate investment will go far.

Roman Temkin is a real estate developer from NYC who has a background in entrepreneurship.