With real estate investing on the rise, there are thousands of people around the world wanting to get their hands dirty with this industry. Many people choose to put their investments towards existing properties. For those, like myself, who are more intrigued by empty land and its endless possibilities, the approach is slightly different. It is always important to know what you are getting into before writing the check, but many people forget some of these crucial aspects when it comes to land purchasing and development.
Research
Sure, the property you find could be a steal in today’s market, but that likely means there is a reason why. Many people make impulsive decisions when it comes to buying something new. When it comes to buying land, research is of the utmost importance. Having a good comprehension of the location of the property is going to play an important role in deciding on your development options. If ever given the opportunity to purchase land, talk to other land owners in the area. Discover their challenges and triumphs. This will help prepare you and help you make a more educated decision.
Assemble a Team
If you already work for a development company, you are set in this department. However, individual land purchasers often are taking this journey solo. For first time land owners, you’ll definitely want to assemble a team of well-rounded professionals to help you. Surveyors, experienced investors, and contractors are all people that you will want on your side. Before you even began the transaction of purchasing, you’ll want to confide in those with expertise in all aspects. If you plan to build on the property, all of your research should include knowing if your desired structure is feasible with the land. These preparations and conversations with various industry professionals will save conflict arising down the line.
Budgeting
When anyone makes a major transaction in life, setting up a budget comes in tandem with the purchase. Buying a piece of land is no exception. Getting quotes from all facets of developing the property needs to occur before signing your name on the dotted line. Making sure you have enough funds lined up for any scenario possible is of the utmost importance. There are countless opportunities for an additional fee to get tacked onto your purchase and you don’t want to be unprepared to dish out the funds.