5 Tips To Consider Before Buying Vacant Land Part 1
If you are looking for land for sale in Central Florida, there are a variety of things you should consider before buying. Though it may seem like a straightforward endeavor, our land professionals are here with some critical tips.
Tip #1 – Inform Yourself of Financial Factors
If you are new to purchasing land, you may be assuming it can be financed in the same way as a home or car. However, this is not the case.
Lenders see financing raw land as risky, since there is no collateral like a home that they could reclaim if needed. Only someone with incredible credit would have a chance at a loan, and even then there are no guarantees.
If you are not planning to immediately build on your Central Florida land for sale, we recommend being prepared to pay all cash. Even if you get lucky, it will probably be a lot of cash up front, likely between 30 and 50 percent.
Tip #2 – Land is Not an Investment to “Flip”
Land is a long-term investment, rather than a “fixer upper” type of real estate situation. While it may not seem like an exciting investment at first, this is precisely what makes land a good investment. It is a tangible resource that cannot crash in the same way the stock market can.
Your land investment will not likely double within the week, but it is reliable and a good hedge against inflation.
Tip #3 – Make Sure You’re Utilizing Resources
Especially if you are investing in property further from your home, it is critical to compile a list of connections and resources. For example, it is beneficial to have a relationship with the following groups, professionals, and personal connections:
- Your Neighbors: First and foremost, it’s never a bad idea to get to know the people who could alert you of trespassers or damages to your property. Forming a relationship with the closest homesteads and adjoining landowners is usually mutually beneficial.
- Mechanic: No matter what type of property you own, knowing a skilled mechanic will inevitably come in handy at some point.
- County USDA Farm Service Agency (FSA) Office: The FSA office administers all government programs that could have a very positive effect on your farm’s cash flow. They also administer programs to help you with conservation issues including pond construction, erosion control, and wildlife enhancement.
Be sure to check out Part 2 of this article for more tips on buying vacant land.