Types Of Investment Properties: Raw Land

posted in: Hard Money Borrowers Guide | 0

Raw Land is one of the simplest types of property to understand (no buildings), but can be one of the more difficult to turn to a positive ROI. The most common uses of Raw Land depend on its location, plot size, utilities access, climate, vegetation, and grading. Some common ways investors earn positive ROI from Raw Land include:

  • Residential development. Sub-dividing the plot to build houses or multi-family apartments, then selling or leasing the residences.
  • Commercial development. Building Offices, Retail, or Industrial structures on the land, then selling or leasing them to business tenants.
  • Agricultural development. Developing the land for farming purposes, and either farming it directly or leasing it to farmers to be cultivated.

Raw Land is really only suitable for experienced investors who understand the nuances of building & development, since it will require multiple steps from permitting, to architectural planning, to materials sourcing, to actual construction. Each step in the process requires special expertise and can rack up significant lost costs if not carefully planned & managed.

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