Financing raw land for commercial construction or development purposes is more complex than buying land to build your dream home. Moreover, this process is quite different from applying for mortgage.
From surveying zoning laws, boundaries, and land-use limitations, a lot of elements go into the land purchase procedure. A raw land is considered a risky investment but a highly rewarding one. And the best option to finance a raw land purchase is to seek specialized loans with flexible repayment terms such as our nationwide raw land loans.
Unfortunately, many investors are highly skeptical of purchasing raw land. Then main reason behind this perception is the scarcity of traditional financing tools available for land purchase and resale. Every construction or property development project has to start with land acquisition. However, credit unions and banks are not too thrilled to offer land loans since there’s high risk involved. In addition, if you take out a land loan through bank, and default the repayment, your purchased land might end up getting repossessed.
Given all the ins and outs of purchasing raw land, our land loan experts at the Commercial Private Equity highly recommend investors make the most of this opportunity. Here are the three main reasons you should consider buying raw land:
Raw Land Owners Are Highly Motivated to Sell
Raw land owners are often absent landlords; the owners are likely to accept a budding offer. Land owners are highly motivated to sell since they don’t have any emotional connection with the asset. This also creates opportunities for negotiations and you might even find an owner who’ll agree to sell a land for a significantly lower price than what it’s worth.
All in all, you can find extremely lucrative deals when purchasing raw land for investment, construction, or resale.
It’s a Hands-On Investment
Have you ever dealt with problems when constructing on an already developed land? Investing in developed lands is often difficult to manage because:
- The digging quality might not be up to the mark
- There may be hidden environmental hazards
- The built-property might not be complaint with all the regulations, etc.
Therefore, investing in raw land is your best call. It doesn’t expose you to rebuilding and maintenance expenses and gives you an open palette to work on real estate projects. It also helps investors call their own shots. You can seek raw land loans from reliable commercial hard money lenders in the US to save yourself the hassle of dealing with banks.
One of the most attractive benefits in raw land is that you can subdivide the property to generate multiple income streams. This is perfect for real estate investors looking to develop the land for business purposes.
The bottom line is: you’re the boss of your territory as long as you comply with building codes of the areas and commercial laws.
To avail swift, flexible raw land loans in the US, look no further than Commercial Private Equity. We’re offer high-end commercial hard money loan consultation and specialized loans to help investors get the most bang for their buck.
Contact us at 4048804660 or apply for an evaluation today!