6 Steps to Buy a Piece of Land with Cash

Fortunately, the process of buying land with cash is not an impossibility. It’s true, however, most people don’t find themselves in a situation with that much cash because it can be a headache to navigate the intricate details when cash is involved.

With enough cash in your bank account, you can buy the land of your dreams, and the financial capabilities and priorities of millennials are significantly different than boomers when it comes to land ownership.

Once the idea of buying a piece of land plants itself in your head, you won’t be able to stop thinking of ideas, and you wonder about the exact process of buying land.

The first step can admittedly be hard, but with enough preparation and patience, you can buy your first piece of property. Let’s take a look at six steps to buying land.

1. Establish Your Goals

Before you impulsively invest in a piece of land, make sure that you are aware of your goals and intentions. In fact, the best course of action to have a clear purpose prior to buying the land. For instance, think about whether you want to use the land for residential or commercial purposes. If you intend to sell the land in the foreseeable future, you will need to establish the criteria for selling it.

2. Choose Ideal Land

Whatever piece of land you want to buy, you will need to weigh your options to hold on to it or sell. However, the answer lies in market conditions. Therefore, it’s important to evaluate your investment strategies and think in terms of a long-term plan that would make your land profitable in the years to come. Once you make up your mind about suitable land, you should assess the surrounding area for accessibility to cell phone coverage, and thoroughly evaluate the area with an objective point-of-view.

3. Evaluate Your Financial Position

Unlike buying a commercial or residential property, the financial factors for purchasing land are relatively different. There is lots of affordable land, but if you don’t have sufficient resources, you will have to provide collateral to cover a high down payment.

Fortunately, the traditional method of buying land is still alive and thriving in the real estate market. With private money, you can overcome a lot of financial obstacles. In fact, you can make a reasonable down payment and interest rates turn into reality.If you need financial assistance, by getting funds from the SBA (Small Business Administration) to cover a part of your total cost at a given interest rate.

4. Obtain All Required Permits

This is where most people get confused. The truth is that there are many permits for different kinds of construction projects. If you are buying and, learn about land permits and fees beforehand to make things easier.

You can easily familiarize yourself with building permits, sewer service permits, water permits, environmental permits, zoning permits, and other regulatory permits. The approval of permits can take a few weeks to months, and it also depends on the nature, size, and geographic location of your land.

5. Employ an Experienced Land Inspector

If you want to avoid additional expenses and an endless due-diligence process, you will need to work with a reliable land inspector. You’d be surprised how smooth the process can be once you have a dedicated professional by your side.A land inspector can help you test the soil, survey the land, authenticate the utilities, and check for any environmental concerns.

Often, sellers may step up their game and offer help in order to reduce the overall costs. Nonetheless, you should verify all zoning restrictions and ALWAYS confirm that there are no liens before buying any land.  Being educated about all of the aspects of closing will help you to negotiate the terms and conditions of your land purchase agreement with the seller and make an offer they can’t refuse.

6. Analyze Closing Costs

Buying land with cash closing costs is the last step. Once you hand over the cash amount due, you are entitled to the land’s deed. You will, however, have to officially  record the land’s deed at the local registry office.

Most people use the services of a professional real estate agent to navigate through this process. Also, it wouldn’t hurt to get the services of an attorney to sort out relevant documents and contracts with regard to your state laws. In fact, attorneys can file for the land on your behalf in some states.

Understanding the Process of Buying with Cash

The steps we’ve shared will help you weigh the pros and cons of buying vacant land before you make a huge commitment.  Buying the land with cash may sound like an exhausting process, but after careful consideration, the right approach, and an understanding of the legal process, you can turn the tables and buy the perfect land to help you build your wealth.