How to Get Started in Buying and Selling Land
Buying and selling raw land is a great way to make money without having to expend very much effort, but investors may not realize the specific challenges before they get started. Ideally, a person would be able to purchase a piece of land when its worth next to nothing and then sell the untouched property to an anxious developer committed to expanding their business. But the realities of buying and selling land can put a serious dent in the profits. Learn more about the potential obstacles that can get in the way of the perfect scenario.
Sitting on the Property
It's not always easy to spot the neighborhoods that are getting ready to explode in popularity because growth takes time. Investors who want to make money quickly may not get the payoff they're looking for if they're buying and selling land. If a new steel plant is hiring thousands of employees, then real estate is immediately going to skyrocket in price. The key is to get to that land before the steel plant makes its announcement, which may mean having to wait several months (or even years) before an investment can start to recoup its original costs.
Checking the Topography
People who are new to real estate don't always realize just how much the natural lay of the land can interfere with their plans. From tree roots to sinkholes to erosion, there are plenty of potential barriers that can make a piece of land unattractive to build upon. Even the amount of shade on the property can be a huge deterrent for a developer. If the land is surrounded by hills, then the building will only receive a meager amount of sunlight throughout the day. Investors will need to inspect the land thoroughly and learn more about the specifics of the area before buying.
Researching the Details
Zoning laws and taxes can make it impractical to buy a piece of land, which is why investors need to do their homeowner before taking the plunge. Some neighborhoods restrict certain properties for commercial buildings only, which can limit the demand for the property. Areas that are particularly environmentally-friendly may pose especially strict regulations on what can be done to the land. Investors should also understand more about the property taxes for the area, otherwise, they may not be able to afford to sit on the land for very long before having to sell it.
Verifying the Pollutants
Real estate investment can turn up some very unwelcome surprises when it comes to the physical state of the land. Depending on how long the land sat, vacant lots may become a dumping ground for various kind of junk or even hazardous waste. No matter how the land is described in an official sales write-up, buyers need to be able to visit and inspect the land to ensure it's suitable for building. Contaminants of any kind can make land difficult to sell or create high clean-up bills that ultimately aren't worth paying if the goal is to make money.
There's more to buying and selling Conway real estate than just getting the paperwork and the financials squared away. Investors have to be careful not to rush into a piece of land that seems too good to be true. While there's plenty of opportunity available out there, investors need to learn to look before they leap or else they could find themselves in hot water.