5 Things to Look for When Purchasing Land for Development

Purchasing land for development is a significant investment, making it crucial to take your time and conduct thorough research.
land for development

Are you new to multifamily property investing and looking to purchase land for development? Investing in real estate can be a lucrative endeavor, but it can also be a daunting one if you’re not sure what to look for. To help you out, we’ve compiled a list of the top 5 things to keep in mind when purchasing land for development.

Location is Key

When looking for land to develop, location is one of the most important factors to consider. You want to find a location that is easily accessible, has good infrastructure, and is in a desirable area. Additionally, look for areas that have a strong job market, as this will attract tenants and increase your property value. Conduct thorough research before making a purchase decision, as the location of your land can significantly impact your investment’s success.

Zoning Laws

Before purchasing land, it is essential to research the zoning laws in that area. All areas have zoning laws that determine what can be built and where. If your land is zoned for commercial use and you want to build residential, for example, you could face legal issues and fines. Make sure to consult with local authorities and zoning boards to ensure that your plans align with the zoning requirements.

Potential for Profit

One of the main reasons for investing in real estate is the potential for profit. When purchasing land for development, it is crucial to identify the potential for profit. You can determine this by looking at the property’s value before and after development, and estimating the potential rental income of the finished property. Consider all costs related to construction, property management, marketing, and maintenance to ensure that the potential profit is worth the investment.

Access to Utilities

Another factor to consider when purchasing land for development is access to utilities. Your property must have easy access to water, sewage, electricity, and gas to support your construction. Additionally, make sure that your land is in an area that has access to high-speed internet and other essential services. These factors should not be overlooked as they can impact the overall value of your investment.

Surrounding Area

Finally, look at the surrounding area when purchasing land for development. You want to find land in a safe area with good schools, shopping, and public transportation. This will make your development more appealing to prospective tenants or buyers, and therefore easier to rent or sell. If the surrounding area is in decline or has a high crime rate, your investment value could take a significant hit.

Let's wrap things up!

Purchasing land for development is a significant investment, making it crucial to take your time and conduct thorough research. This list is not exhaustive, and there may be other factors you should consider based on your individual situation. However, by keeping these five factors in mind, you can minimize your risks, make a sound investment, and get closer to your financial goals.

Remember, there are many factors to consider before making any purchasing decisions. That’s why it’s important to engage with an expert so you can make an informed decision. Our team of experts is here to help guide your decision-making process and offer sage advice along the way. So, if you’re considering investing in land for development or want to learn more about multifamily property investing, call or email us today and let’s get started!

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Mandy Page

Hello, I'm Mandy Page

I have been in the real estate industry since 2003, with most of my background focused on multifamily and single family rental income properties. I also have a heart for helping others with housing solutions ranging from property management consulting to land development to senior housing solutions. I’m excited to meet new people and find more ways I can offer housing assistance.

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