Land development is a building block of business growth and economic development. The efficient usage of raw land can lead to several economic advantages for investors, realtors, and businesses. It ensures increased economic productivity and makes room for additional investments.
In this article, we will outline some strategies to make land development profitable for your business.
Understand your business requirements
Understanding your business and its true needs is the fundamental step of acquiring financial growth. This is especially true if you are considering land development. Pay close attention to your business requirements in areas including but not limited to acreage, accessibility, proximity to the workforce, and geography. Besides, also make note of your business aspirations and plans. A clear understanding of these details will help you have a transparent discussion with your lender and carve out an appropriate land development plan.
Besides, if your goals will be properly defined, you will be able to strategize comprehensive plans to maximize property and gain increased ROI.
Land development can be a real challenge if you underestimate the importance of zoning and other perimeters before acquiring it.
First, you need to understand the property’s zoning designation and its legalized uses. These attributes are important, not only from the legal perspective but also for your property value and impact.
Besides, never overlook the political climate of your property premises. Some municipalities do not allow developments in their area even if there is nothing wrong with the zoning. It’s preferable to choose a location where such things are unlikely to happen.
Land developments involve significant financial investments. After acquiring the land, you will also need to prepare it for construction or at least keeping it in good shape for a sale. Therefore, always explore multiple financing options before coming up with a conclusion.
The financing option appropriate for you directly depends on your purpose of purchasing it in the first place. Always make note of the LTC (loan-to-cost) ratio of the total cost you are receiving from the lender. It must be comparative to the construction and property type.
Global Capital Partners Fund is a well-reputed direct lending company in New York with a network of land development experts and lending partners who can assist you with all the procedures involved in land purchase or acquisition.
If you are looking to purchase property, our team can help in the proper execution of your goals and help you meet your financial objectives. Feel free to contact them today and get more information on their acquisition funding programs.
Besides, their services also include bridge loans, hard money loans, acquisition funding, private commercial lending, and joint venture financing. Check out their financing solutions to select the suitable one for your business.