Resources-RAWLANDINVESTMENTINTHEWEST

RAW LAND INVESTMENT IN
THE WEST

The present economy presents hidden opportunities!

How to Invest in Raw Land

By Forbes J. Douglas

Any investment requires careful analysis of the
purchase, and raw land is no exception. Many
investors feel raw land is one of the safer ways to
increase financial holdings, but all advise that it is
important to know what you are doing before taking the
final step and committing monetary funds.

Things You’ll Need: Money for original investment

Step1

Decide the reason for the raw land investment. This will
guide the kind of land, location and price. For instance,
you may be looking to invest with the intention of
building residential or commercial structures one day.
Or, you may want only to hold the investment for a time
then sell at a profit.

Step2

Get the pertinent information. You need to look at the
zoning for the land to make sure your development
idea will work with city plans, or know what kind of value
it might have when you sell to a future developer. You
also need to make sure city services are planned or
available, such as sewer, electricity, roads and other
necessities if the land is ever to be put to use for
people.

Step3

Work with a real estate agent. Do not choose the first
name you come to or even the one who sold you the
house you live in. Buying and selling land is a real
estate specialty, and you want someone who knows
the future development for the area, has perhaps
invested in land of his or her own, and who talks to
officials in the area as much as clients.

Step4

Find raw land from other sources. Your agent will have
market listings and may be aware of unlisted raw land
for sale, but there other ways to find potential
investments. You can talk to farmers, watch for tax
sales and foreclosures, read the subdivision notices,
research state and county government websites and
generally immerse yourself in who is doing what and
where.

Step5

Examine the rate of growth in the area. The speed with
which an area is getting developed will increase the
speed with which your investment appreciates, if the
development appears to be longer term, decide if you
want to hold on to the land for that long.

Step6

Assemble a good down payment. Financing from
banks on raw land can be trickier to arrange than for
developed land. You may need to have as much as 30
percent in hand and finance the rest, or have good
research to show the lender that the investment is
secure.

Forbes John Douglas is a retired Realtor and vacant
and farm land development specialist with 30+ years
successful experience.

Forbes J> Douglas
April 22, 2008

SouthWest Land Net
sales@southwestlandnet.com Old Robles Ranch 2C, POB1782, Cortaro AZ 85652 1-866-463-8757

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