Posted on: 9 June 2018
Investing in real estate has long been a method of building wealth and assets. But, investing in real estate does not always mean purchasing homes or buildings that have already been constructed. Some people who are interested in real estate investments choose to develop a piece of land and then either sell the building or lease it out to make a profit. If you're interested in becoming a land developer, use the following tips to get started.
When you're new to land development, it is not a good idea to be overly ambitious. You are much better off learning the ropes by working on a smaller scale project. A smaller land development project will give you valuable experience, but you will also be able to mange expenses and decrease the likelihood of big mistakes happening.
Select a General Area to Build
Before any land development can be done, you need to determine a general area where you want to build. Ideally, you should select an area that is not too far from your home so it will be easy to visit the site and oversee the building construction. You will need to decide whether your land development project will be residential, commercial, or industrial—this decision will help you narrow down the general area based on zoning restrictions.
Most people do not have the liquid assets needed to fund a land development project on their own, so financing is a necessity. Some land developers turn to investors who give money towards the project while others secure loans from a lender. Carefully consider how you are going to finance your land development project and make sure that you have all funds in place before moving forward.
While you may be excited to get your land development project started, it is important to take your time when selecting a piece of land to purchase. The location of the land you buy can make a big difference in the value after the buildings are constructed. Work with a very experienced real estate agent who understands land development and look at several different pieces of land before you make a purchase.
Hire the Right Builder
After your land is purchased, you will need a builder to construct one or more buildings on the land. Don't cut corners when hiring a builder—it is essential to work with a builder that is experienced and known for quality work. Get several bids from builders and then research each one to learn more about their past projects.Share