How to Buy Land
HOW TO BUY LAND: Getting Started–
Learning how to buy land at wholesale prices takes a little bit of due diligence, effort and know how. When I first started to learn how to buy land I was overwhelmed with all of the information online. Does it perk? Are there easements? What’s the water table? How is it zoned? What is the highest and best use? And on and on…
First, don’t just rely on your local broker to help you buy land with your first purchase. Remember, they get paid for getting a deal, not necessarily making you happy. As a result, you need a working checklist:
This is what I recommend if you want to know how to buy land:
So your first question should be, what am I, buying this land for? Will it satisfy my requirements? Once you have a clear understanding of what the land is supposed to satisfy as far as your investment goals, then your search can begin. So often people waste their time and effort over a simple land flip and lose out on the deal because they get overwhelmed with the due diligence.
Land can be said to consist of soil, geology, water and climate. Whether you’re looking at beaches, mountains, deserts, high plains or city lots, they all have some basic components. Some of the basic requirements I most often seek are clean air, access, water, and views.
Clean Air might be construed as freedom from dusty roads, smog, foul smells from industry or landfills, free from noise of traffic, airports and/or neighbors.
Water Availability is essential and is often desired for aesthetics as well as drinking, bathing, washing, cooking, cleaning, toilet facilities and watering vegetation. I also enjoy lakes, rivers and streams for recreation. Others enjoy the tranquil sounds that our streams, rivers and oceans can provide. Without a doubt, water availability is a major concern.
Note: A 1666 square foot roof can capture 1000 gallons of water for each inch of rainfall; cisterns of all types have existed since the dawn of man.
Electricity is another necessity that we often take for granted. Is a power plant within a reasonable distance from the land or will it cost you thousands of your own dollars to run cables across public lands to get your electricity hooked up? How far are gas and oil suppliers?
Sewage Disposal – 25% of our country is on a well and septic system. If you don’t have access to public utilities, will your land support a septic system as well as the water to operate it?
Solid Waste Disposal – how far is the landfill? Is there a collection service? You can’t burn everything; how will you get rid of it?
Those are the major necessities for modern, everyday living…things that we really need, but can often overlook until after the contract is signed. Other essentials are a telephone, mail delivery, shopping, police, fire station, hospital/emergency services, schools, churches, recreation facilities and access by good roads and highways. I want you to think like your potential buyer. If you’re focused on a quick flip for profit and your niche is buy and hold investors then you’re going to eliminate some of these factors in your due diligence as it’s not as important to your buyers.
You‘ll want answers to questions like those above and then contact county officials such as planning and zoning, community development and building departments are a good place to start. I would also call utility companies about water, sewer, electric and phone, and talk to neighbors, contractors, developers, real estate agents, appraisers and a local surveyor to have some of the more important questions addressed at the beginning of your search. I wouldn’t rely on the sellers to be all-knowing, either.
So this is a good start if you want to know how to buy land and stay out of trouble. Please contact me with any questions or if you need help with your land investment.
For more help in learning how to buy land consider the following resources:
http://www.wikihow.com/Buy-Raw-Land
Great Book– Finding & Buying Your Place in the Country
