Why do you want to purchase vacant land? Are you a real estate investor looking to develop homes? Maybe you’re a property investor looking to develop commercial buildings to accommodate businesses? A huge factor in the success of vacant land investing is the condition of the market — but you already knew that as a savvy investor. Nonetheless, we want to share some benefits of investing in vacant land with a hard money loan in this post!
If you’re searching for a vacant land loan, TABS offers a number of options as the premier hard money lender in Colorado. We service mainly the Denver Metro Area, but we also service customers throughout the rest of the state. Ready to secure capital for your investments? Apply for a hard money loan today!
The Four Benefits of Investing in Vacant Land
Opportunity to create what you want
Vacant land is like an empty canvas. You start with nothing and end up with a beautiful painting. When you invest in vacant land, you’re giving yourself the opportunity to design, develop, and build exactly what you want. In many cases, real estate and property investors will give the market what it wants to turn a larger profit.
You own the investment
When you purchase vacant land, the investment is yours. There are no partners (unless you have one), no “higher-ups” dictating how you develop the land, and no obligations outside of your own vision. Vacant land investments are yours to create.
Less maintenance than a rental property
If you already have vacant land investments, compare the cost to maintain them compared to an empty rental property. You shouldn’t be surprised at the maintenance cost differences, but the land is less expensive for upkeep.
More affordable to acquire than developed land
The major difference between vacant land and developed land is the property tax costs. In many cases, vacant land costs less in property taxes. This means that any long-term land investment is better off as vacant land than as developed land. Also, you may find the land value increases over time, which means you can use your vacant land as collateral to secure a construction loan from a hard money lender in Colorado.
Competition is limited
When you invest in vacant land, your competition pool shrinks considerably. Real estate and property investors focus primarily on structures since it’s easier to start gaining a return on the investment sooner. What investors tend to ignore is how little competition there is in the vacant land market; it’s a long term investment, but if you can catch the market just right, secure the best hard money loans as you develop, and effectively use your investment to make you money, you can find great success.
The TABS land loan process
Before investors work with us, we have them submit an initial application. This allows us to review their hard money loan needs, the project they want to invest in, and how we can help them do just that. Once we decide the applicant is a good fit with us, we have them fill out our full loan application. The second application is to get more details, check on the collateral being offered against their loan, and start the conversation on terms and agreements. We get back to our applicants within 24 hours.
Finally, we’ll sit down with the investor and finalize the terms and loan agreements. We will then have the investor fill out funding documents so they can secure their capital. We’ll also have the investor complete closing documents to confirm the entire process we just went through with them.
If you’re a real estate or property investor in Colorado, we can assist in securing capital for your vacant land investments. As a family-owned and operated company servicing mainly the Denver Metro Area, we want investors to inject their money into the economy; it’s what makes the world go ‘round. We work with investors from all over Colorado, so if you’ve got a project in mind, let us know! Are you ready to get a vacant land loan? Give us a call to get started on your initial application!