Benefits of Investing in Raw Land

Investing in raw land is a great way to ensure that there are resources available for agriculture production without capitalizing on arable land.

This is because when resourceful investors purchase raw land, they can choose to do with it whatever they wish, including selling it to companies or governments that need or have the resources to develop it into fertile ground for farming. 

Here are the benefits of investing in raw land.

Raw Land Provides Multiple Opportunities

Investing in raw land provides opportunities that cannot be found anywhere else. Opportunities such as farming, mining, and logging can all be easily done on raw land. 

Also, as a backup plan, if the resources for one enterprise are not available after the land is purchased, there are other opportunities to take advantage of.

Raw Land Can Be Bought at Reasonable Prices

Raw land is affordable because it has not yet been converted into farmland or used for another purpose. In America, many farmers cannot purchase land because the cost of land has skyrocketed. Investing in raw land is a way to get a piece of property at a reasonable price.

Raw Land Can Be Used in Many Different Ways

Investing in raw land allows for any resource that can be used to develop it into something profitable. This is great because there are not many investments that give more than one revenue stream opportunity.

Raw Land Is Perfect for Long-Term Investments

Investing in raw land is an investment that can last a lifetime. Many investors can turn raw land into fully developed property with the right resources. 

Investors see such investments as long-term ventures because they do not expect to see their money back for many years, if ever. Raw land lenders provide a great way to ensure that all of your investments are protected.

Land Ownership Gives Peace of Mind

People need to see and feel what their money is paying for. This is why investing in raw land gives the investor peace of mind because they know exactly where their money has gone and how it will benefit them in the future.

Raw Land Does Not Take Much Maintenance

Raw land does not need much maintenance, allowing investors to focus on more important things such as increasing revenue streams or developing other real estate properties.

Raw Land Is Always in Demand

Raw land can be sold to people or companies that need land for agriculture production. As more and more people are becoming aware of the benefits of eating healthy, investing in raw land can lead to a great return on investment.

Investing in raw land can be a good way to generate profits. However, it is important to note that one must do this with caution and knowledge so that they do not end up losing money. The more you know, the better chance your business has of success.

What Is a Raw Land Loan and What Is It Used For?

Raw land is undeveloped land in its natural state; it's real estate that has no buildings, farm fields, or utilities. Raw land may not even have an access road.

Buying raw land presents the buyer with the possibility to do what they like, as long as it falls within zoning regulations. Raw land has also become popular as an investment. While buying raw land is an attractive option for some people, financing the purchase can sometimes be difficult.

Most Lenders Want Collateral

Since there are no structures or farm fields for the bank to hold as collateral, banks are often reluctant to finance raw land. If the buyer falls behind on their payments, the lender wants to be able to foreclose on a property they can quickly sell.

While raw land is attractive to some people, most people want to develop real estate. Most people do not want to deal with building a road, digging a well, installing a septic tank, and building a home from scratch. 

Also, that home will need an off-grid solar system and maybe even a rainwater harvesting system. Raw land is not something a bank can turn around and sell quickly.

Raw Land Loans

Fortunately, raw land loans are available. Raw land loans are generally obtained by developers who want to build an industrial park or a subdivision. Some companies, like Raw Land Lenders, realize that this is typically why someone wants one of these types of loans. However, it's also possible for individuals to get a raw land loan.

Typically, you’ll need to present a detailed plan of what you want to do with the land, such as build a home, factory, or start a ranch. The terms of the loan can vary depending on how you plan to use the raw land. 

Also, raw land loans typically have very short terms of just two to five years, often ending in a balloon payment. The closer the land is to being developed, the easier it will be to get a loan. 

Also, you may get better interest rates, better terms, and a lower down payment. There are lenders that specialize in raw land loans, and seller financing is also common.

Know Before You Buy

You may assume that buying raw land means that you can do whatever you want with it; that is sometimes true, but most of the time it's not. Before you buy raw land, check with the county for zoning and building codes. It may be zoned for a specific purpose, and there may be a time limit in which to begin building.

Raw land is often very affordable and gives you the chance to start fresh with a piece of property. It can also be a good investment as land prices continue to rise.