Are you interested in commercial land for sale? It is a good idea. Investing in commercial land can increase the value of your portfolio. On the other hand, it is possible to make mistakes that can cost you money. That is why we assembled the tips below for new commercial land investors.
First, buy land that is in an area that is being developed. There is a limited land supply, so look for land that is in the path of development in the near future. Or, search for land that is in an area where a municipality is expanding. Then you can buy land in the area that is developing and sell it for a profit.
Second, buy land that does not require as much attention and is less expensive. If you own a piece of undeveloped land, you do not need to do much. You have no upkeep and nothing in terms of utility payments. The purpose for holding this land is for it to appreciate when development approaches.
Third, you should start working on getting approved for a loan as soon as possible. Getting financing on undeveloped land can be challenging. The qualification standards are more difficult and you may need to make a 20% down payment.
Fourth, keep an eye out for vacant lots. They tend to be eyesores in the city, but you can get a good deal from the current owner in some cases. If you find a good piece of land in a good location at the right price, you can do well.
Fifth, commercial land investors need to understand zoning and usage regulations. Nothing is worse than buying commercial property then finding out you cannot build commercial on it. So, focusing on property zoning is vital. Before you sign a deal, make certain you know what that piece of land is zoned for.
Sixth, do your due diligence on whatever property you are considering. Unless you are an expert in land, you should probably visit the land and see it yourself. This lets you see the topography in a way that a map does not. Also find out about utilities and if they are available. Also be ready for environmental tests for hazardous materials, pipes and underground tanks.
Keep these ideas in mind as you start looking at commercial land and you will probably make more money and have more enjoyable experience.