It is commonly said that the best road to wealth is through real estate. One form of real estate investing is the acquisition of undeveloped land with the intent to sell it at a higher price or develop it.
Investing in Undeveloped Land
Raw land can be a great investment for two main reasons: there is a limited supply of it, and demand for it is almost always rising. Additionally, raw land does not require much, if any, in the way of upkeep.
Securing the Parcel of Interest
Purchasing Land can be quite costly. Most folks need some form of financing to accomplish that. There are a number of alternatives to check out when looking for funds to acquire raw land. Some of these include:
Personal or Investment Savings. If you are fortunate enough to have a significant sum in personal savings, this can be used to purchase raw land, but most people don’t choose this because they haven’t enough available or wish to keep it for other goals such as retirement.
Loans from a Traditional Bank. A mortgage from a traditional bank is certainly an option to consider. However, it may take some time to get the funding or you may be denied if the bank considers raw land too risky for their tastes.
Bridge Loans. Obtaining a bridge loan from a private lending agency is a third alternative. In this situation, a short-term loan is provided to buy the land. The loans are often backed by using the land itself as collateral.
Bridge loans are usually more accessible than bank loans. Keep in mind that the repayment period tends to be shorter and interest rates are often higher than other forms of financing.
Partner with Artis Commercial Capital
Artis Commercial Capital offers bridge loans and other options for those desiring to purchase raw land as an investment. Give them a call today to discuss your specific situation in more detail.