If you are looking to invest in residential or commercial real estate there is a lot to know and understand about the different ways to invest your money. While many people may choose to invest in and remodel a building that is already up and standing, there is a new way to invest. One of the best ways to invest in residential or commercial real estate is to purchase raw land and then develop it. This process may take more time, but it allows you to build exactly what you want for about the same price. If you are interested in developing raw land, here is everything you need to know about the raw land development process.
1) Find The Perfect Property
Before you decide to jump right in and invest in the first piece of property that you find, you need to look for the ideal piece of land that can give you a successful building. If you are interested in commercial real estate, you must understand how much traffic goes by the property and how many customers you could expect to get. To understand this critical piece of information you may need to observe the lot during different days, times, and seasons. You want to make sure it is perfect so take the time to initially figure out if the property is worth it or not before you invest.
2) Offer A Good Price
The next part of the raw land development process is to determine how much you want to offer for the land. Your real estate agent may be able to help you determine a good offer price. You will likely need to consider the size of the property, access to public utilities, soil type, and length of time that the property has been on the market. Take all of these things into consideration before making an offer.
3) Zoning
All land is initially zoned to be a specific type of property. Some different property types may include commercial, condominium, multifamily, or a single-family. The zoning laws will significantly affect the design of your building and determine how you plan to build and sell it.
4) Plan
Once you know if you have won the bid on the property and you know exactly what the property is zoned for you and start to plan out the building. The great thing about the raw land development process is that you can truly make the building you own.
You can determine if you want one story or multiple stories, the construction materials used, the design features of the building, and anything else you can think of. If you are new to real estate investment you may want to work closely with a construction company or a designer to ensure that you get exactly what you want. Get in touch with our engineers now!
5) Begin The Building Process
Once you are ready to start the building process you will need to hire a construction company to help you. The raw land development process is not a task for a one-man crew. You will need a variety of different people to help you. You will likely need a demolition crew, construction crew, different tradesmen, utility workers, and many others.
It is crucial that you let everyone know exactly what to expect when working with you. Set a reasonable, yet firm, construction deadline to try and keep everyone on the same page. Ensure that you always have your phone handy so that you can answer any calls.
6) Sell the Land Or Rent It Out
Once you are finished contact a real estate agent and develop a plan to sell the building. Make sure to take lots of pictures so you can remember your hard work.
