Buying undeveloped land can sound like a dream come true. It's quite common for people who want to build new businesses. It can also be a great option for people who invest in real estate, as they can improve the land and sell it for a profit. If you're in the market for raw land, remember the following information so you are prepared for your purchase. What Qualifies as Undeveloped Land? Raw land includes parcels that have nothing man-made. That means that there are no resources or facilities, such as electricity, sewer, or buildings. Sometimes, there might not even be a road going to it. This is land that has never had anything done to it. Note, that raw land is something entirely different than vacant lots. Vacant lots have infrastructure, such as water, sewer, and power, while raw land does not. What Are Some Advantages of It? The advantages of purchasing raw land for sale include:
How Do You Finance Land for Sale? When you buy a commercial building, you use traditional real estate financing. However, buying raw land is different. Usually, it requires a land loan. This has much stricter requirements than traditional financing. You will need excellent credit. up to 50 percent of the price of the property as a down payment, and potentially another piece of property for collateral. Use These Tips To Find The Right Property Undeveloped land can be a great move for your business. Remember this information to ensure you make the right moves and know what is involved in the purchasing process.
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AuthorHello, my name is Roger Dennison and I'm a successful commercial real estate broker, with more than 20 years in the field. Archives
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