Do it yourself (DIY) is becoming quite common, especially when buying a house. Whether you are seeking a bargain or have a long list of requirements for your new home, there are a few things to
When Buying Raw Land Things You Need To Know
The first rule of real estate investing, always know what you’re getting into. Whether that’s buying a fix and flip home or vacant land to build on, it’s important to do your homework. Buying raw land makes the possibilities endless; you could build a custom home to live in or sell, you could sell it to a builder or you could choose to develop it on your own. However, land doesn’t always mean it’s suitable for development. Here are a few things you should be considering before you decide to hard money down.
Zoning First and foremost, understand how the land can be used. Local governments typically have established zoning regulations and ordinances on the land, so doing a little research is the first order for getting started. Finding out this information is simple and easy to find on line in Wake County at Wake.Gov.
Calling the local planning and zoning department will also enable you to find your answers to additional questions.
The Past & Present Raw land could have a lengthy history or no history at all, but you will never know if you don’t ask questions or do some fact-finding. Was the land previously used and if yes, what it was used for? You don’t want a piece of land that has a bad reputation. Check to see if any previous surveying has been done and when it was done; if it is outdated you may need to reevaluate the land. And most importantly, see if the land is build-able. Note if you do have an outdated survey call the company who originated it, they will be able to pull additional surveyor notes. Also, most often they will update the survey at a lower cost.
The Basics Water, gas, electric, sewer, phone, yep infrastructure, believe it or not, sometimes even the basics can be forgotten. If you’re a real estate investor, your goal of buying vacant land probably comes with the intent to build on it. Be sure to check whether the land has accessibility to public utilities or if a septic system and water well need to be installed. Knowing this information beforehand will save you a lot of money and compounded headaches if you have true estimates of the cost.
The Environmental Assessment The last thing you want to happen after you’ve purchased your raw land is to find out there is no road access, or it sits in a flood zone. You could quite literally be under water! Environmental testing, like a home inspection, should be done prior to purchase. Knowing if there has been soil contamination, earthquake damage, sinkhole possibilities or if any other acts of nature have affected the land will help assess the feasibility for viable property. Checking if the land is in a flood zone is quite simple. You can have a surveyor provide the assessment or use the Federal Emergency Management Agency (FEMA) Flood Map Service, where you can simply put in the location to check flood maps.
Hard Costs You’ve done your homework, asked all your questions and everything looks great - you’re ready to purchase! But how much is it going to cost and how are you going to pay for it? Financing vacant land and new construction may have a few things in common with financing an existing home purchase, but it is also significantly different. An existing home, well, already exists, so in some ways the process is more streamlined. Purchasing raw land with plans for new construction requires a lot more time, effort and money. A regular bank may increase costs and make it more difficult, but it doesn’t have to be.
There are different financing options for the varying real estate investment projects, ranging from development and land loans,new construction loans and acquisition loans. If you are an investor that is ready, willing and able to purchase vacant land to start your dream project CLICK HERE to see all current listings.
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