Buying land for investment purpose or for development can be a highly rewarding investment, and even the first step toward building your dream home. However, it’s not as easy as it might seem. Several factors such as location, budget, and financing significantly impact your buying decision.
As an investor, you should never jump into purchasing the land you instantly find attractive. Other than the perfect location, there’s a long list of due diligence and legal procedures that need to be taken into account.
This blog will help you understand all the nitty-gritty factors involved in buying land. Even though buying land is a short-term investment project, it’s a major undertaking. The process usually begins with market research and proceeds toward deal closure after accounting for fees, permits, the cost of purchasing the land, and financing.
Before buying land, here are some key steps to follow:
Finding Land for Sale
The first step in buying land is to search for one. This is where an experienced real estate broker can help you, or you may choose to do it yourself. Skim through classified newspaper or run an online search. Most land owners who’re interested in selling their assets independently choose to announce via newspaper.
You can also check out specialty magazines to find lucrative deals regarding land resale and purchase. If you exhaust all the options mentioned above, look for government entities selling land. Check out the realestatesales.gov for options.
All the above mentioned land search options are just the on-market possibilities. In some cases, you might find plots in your locality that aren’t listed for sale yet. Keep your eyes and ears open for situations like these; you might find exactly what you’re looking for.
Choosing the Right Land
Once you have circled and highlighted all the options that you find attractive, move on to the next step: choosing the right land to buy. Start by checking the local state and zoning laws to determine whether it allows land purchase for investment purposes. Zoning laws are developed to restrict building practices, building size limitations, and permits associated with buying a residential or a commercial land in the area.
Another main factor to consider is the quality of the land’s soil. This one’s extremely important if you plan to build a project on raw land. Check for signs in the soil that might create hurdles in swift digging or building.
Analyze availability of basic resources such as natural gas and electricity in the area. Don’t forget to get the land inspected for potential environmental hazards.
Get a Private Loan to Finance Your Land Purchase
Investors usually have a limited budget. If you find yourself unable to finance raw land, you might lose the deal. This is where our hard money loans for raw land purchase and development can help you.
If you’re planning to build a home on a purchased land, a private lender won’t consider your request because it’s purely a consumer loan. However, if you plan to develop the land for business purposes or resell it as a real estate trade, seek out financing from private lenders.
If you’re looking for flexible nationwide financing options to purchase a land for development, construction, or resale purposes, apply today!