When looking for land, there are a number of items to consider when contemplating a purchase. These include cost, location, jurisdiction, zoning, deed restrictions, utilities, floodplain, topography, roadway access and easements.
Vacant Land is one of the most overlooked and misunderstood real estate investments in the world.
Most real estate investors completely fail to recognize the superior benefits that come with owning land in its raw form.
It’s unfortunate, because the simplicity and stability that comes with owning the right piece of land (purchased at the right price) can far outweigh the myriad of problems that are certain to come up with any other type of real estate.
While I firmly believe that vacant land is one of the best places you can put your money, there is another side of the story that needs to be carefully considered.
As an experienced land investor, I’ve learned (sometimes the hard way) that there are a number of things that need to be evaluated before purchasing a parcel of vacant land.
Land Can Be Deceptively Complicated
On the surface, it seems like such a simple creature – but there can be A LOT of potential problems lurking beneath the surface of any piece of land. I wouldn’t necessarily say all these issues are common, but the fact is – any one of these things could potentially be a deal killer if not addressed properly. When you take it all into consideration, it adds up to a sizable list of things that ought to be investigated as part of your due diligence process.
Don’t get me wrong, land is a rock-solid investment. It’s just a matter of knowing what to watch out for, and under what circumstances you should re-adjust your offer price (or walk away from the deal altogether).
1. What is the Zoning on the Property?
First and foremost, it is vitally important to understand what a property can be used for, and what the highest and best use of the property is. With a simple phone call to your local planning & zoning department, most offices can give you the answer to this question in a matter of seconds. Once you know the zoning classification (e.g. – residential, mixed-use, commercial, industrial, agricultural, etc.), ask them to give you some …