3 Questions to Ask When Investing in Florida Farm Land
Are you thinking about investing in farm land for sale in Florida?
If so, it is necessary to conduct extensive research in order to make a knowledgeable and well-informed decision. Buying farm land can be a very profitable investment, but it can also be a complicated process. There are many variables that will determine your future financial success, so before you begin your search, the land experts at Saunders Real Estate recommend asking yourself 3 important questions.
1. Will the land allow you to meet your financial objectives?
When investing in farm land, it is essential to make sure the land you choose will allow you to meet your financial objectives. First, make sure you’re paying a fair purchase price. When considering the asking price of Florida farm land for sale, take into consideration the selling prices of comparable farms in the area. Also, take into consideration zoning restrictions, water availability, and soil conditions, as these can impact how you are able to use the land and generate cash flow. In addition, be sure to account for both anticipated and unanticipated expenditures, as these could have a significant impact on profitability.
2. Should you go with an all cash purchase?
You may have the resources to make an all cash purchase, but determine if this is your best option. If you commit all or most of your cash, you will not have the necessary capital for future investments? There may be a gap of time before you see a return on your investment, which will tie up a large portion of your liquid assets. This could potentially stunt the long term growth of your business. Inquire about options for financing a partial amount of the land cost, so liquid assets are available for other activities.
3. What do you know about the land and its resources?
Know the soil profile and annual crop rotation history in order to properly gauge the land’s capacity for production. Other important information to gather is where certain rights fall under the purchase. Are there mineral rights on the land? Ensure these rights are going to you as a purchaser. If not, determine if this will effect the viability of the farm. We also recommend conducting an environmental audit to determine if the land meets state and national environmental standards. If it does not, you could be setting yourself up for expensive cleanup upon purchase.
There are many details to consider when purchasing farmland for sale in Florida, and it is important to make an informed decision. For this reason, it is highly recommended to consult a CBC Saunders Real Estate land professional to guide you through the purchase process.