Savvy real estate investors who seek to diversify their portfolios understand the potential returns and the unlimited number of creative uses that land can offer. Often, these entrepreneurial investors combine other business interests with creating wealth through their real estate investments and develop a parcel of land to grow their business further.
Whatever your investment strategy may be, you should have a plan that you follow step by step before ever looking at any land to avoid making a mistake that could be financially devastating. Regrettably, history tends to repeat itself. Therefore, it’s wise to enter this venture with a keen awareness of land investor errors, learning from the errors of others instead of your own. So read on as we explore these four common mistakes to avoid when buying land in Memphis.
Financing
One of the most common mistakes that people make when buying land in Memphis is searching for properties without having the necessary funds to purchase and develop the land, or without arranging financing with a lender. This situation can be emotionally challenging when you realize that the properties you are interested in are beyond your budget.
To avoid such a frustrating experience, it’s advisable to start your property search with seasoned local professional investors like Memphis Home Buyers. Their experts can help guide you to various financing options and understand the development costs involved in your project. They can also examine your financial situation and provide valuable insights that can help you make informed decisions.
By working with professional investors from Memphis Home Buyers, you will know precisely how much you can afford to spend on the land, hold the property, and still achieve your plans for the parcel. You can rest assured that their expertise and experience will help you make a wise investment that aligns with your budget and goals.
Not A Profitable Investment
Failing to select the right location that will return the highest profit on your investment dollar is one of the common mistakes to avoid when buying land in Memphis. However, a professional investor like those at Memphis Home Buyers will help you understand the long-term value of the land and how its location affects your intended plans; for example, if you are building a manufacturing facility, is the location close to major thoroughfares.
Not A Fact-Based Decision
Even experienced land buyers who are familiar with the Memphis market can make a common mistake when buying land: purchasing a property without first conducting a feasibility study and following up with a critical area designation study or CAD. Unfortunately, this error can result in owners being stuck with a piece of land that is difficult to sell and develop.
To avoid this costly mistake, it’s essential to work with professional investors experienced in land sales and development, such as Memphis Home Buyers. Their experts can help you conduct due diligence, run the numbers, and perform a feasibility study to ensure that the land you’re considering is suitable for your needs.
Furthermore, working with professional investors experienced in land sales and development can help you navigate the complexities of the critical area designation study or CAD. This study is crucial to identify any critical areas that may exist on the land, such as wetlands, floodplains, or steep slopes, which can impact your development plans.
By working with a professional investor experienced in land sales and development, you can make an informed decision and avoid the costly misstep of purchasing unsuitable land. Their expertise can help you identify opportunities and ensure that you make a wise investment that aligns with your goals.
Going It Alone
Failing to work with a network of the most highly regarded pros in the land industry to help bring your vision to light is one of the biggest mistakes to avoid when buying land in Memphis. Working with a professional investor like those at Memphis Home Buyers can save you valuable time by zeroing in on the right property for your budget. In addition, we will save you money because at Memphis Home Buyers, our professional investors never charge commissions. Helping investors like you earn the highest possible returns on your real estate investments is our motivation at Memphis Home Buyers. And don’t forget to ask about our current inventory of the best investment land available in Memphis.
When you work with Memphis Home Buyers, you work with a full-service team that moves swiftly to handle everything for our investors while explaining the process step by step; we make the land investment process easy. Call Memphis Home Buyers at (901) 828-8419.