3 Reasons to Consider Land as an Investment


Before buying raw land, investors should conduct a comprehensive due diligence assessment. This should include thoroughly evaluating the property’s location, required annual taxes, and available utilities. Checking the property’s accessibility, the likelihood of trespassing infractions, and legal ramifications are all wise moves. These elements have the power to make or destroy an investing choice.

Due Diligence

As with any business or investment, a thorough due diligence process is critical for ensuring you make an informed decision. With it, you can gain essential information and earn money that could have been avoided.

A good due diligence check involves investigating the economic, legal, and fiscal circumstances of a company or an individual. It uses sell land reviews to evaluate sales data, shareholder structure, and potential connections to corruption or tax fraud.

Due diligence is necessary for any investor, whether a real estate entrepreneur, private equity group, or strategic buyer. A well-executed due diligence check will help you substantiate the business’s financial and operational information and give you confidence in its value.

To ensure a successful transaction, you need to understand the property’s economics, including market supply and demand, comparable rents, vacancies, operating expenses, real property taxes, and insurance. It also is essential to examine the property’s leases and determine if any improvements will be needed to attract new tenants.

Due diligence is a need for any real estate purchase or transaction, and investing the time is worthwhile in the long run. Research conducted by angel investment groups has shown that those who dedicate fewer than 20 hours to due diligence per deal see a return multiple of 1.1x, while those who spend more than 40 hours see a 7.1x return.

Market Research

Any firm must conduct market research, whether introducing a new product or trying to enhance customer service. It may be as simple as gathering feedback from existing customers to see how they feel about your services or products or a comprehensive study of the competition and their strategies to improve your brand’s visibility.

The most effective type of market research is the one that fits your company’s specific goals and objectives. Making sense of the vast amount of data that is currently available might be a challenging undertaking.

However, if you do your research correctly, you’ll be rewarded with insights you won’t find anywhere else. The best way to get started is by creating a well-defined set of research objectives to guide you through the entire process.

Besides the most common types of market research (such as surveys, focus groups, and questionnaires), there are many other exciting options to consider. In particular, there are two types of market research to keep an eye out for primary and secondary.

Financial Analysis

Understanding the project’s financial ramifications is crucial when investing in a land review. The process starts with the application plan, which must be reviewed by a team of technical and professional staff within the Land Use Review Division to ensure compliance with the core provisions of the Land Development Code (LDC), including zoning, design standards, subdivision, drainage/floodplain, water quality, transportation, environmental review, erosion control and mitigation and protection of protected or heritage trees.

Note: As the review progresses on a county-by-county basis, the status of each check can be monitored through a review dashboard that displays statistics on the number of reviews for each county and their status. This information can be found by selecting a county on the map below.

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