The first step in the process of buying, developing and profiting from vacant land in Detroit is to research! There are a handful of ways to find vacant land to buy. First of all, you can call us at (313) 246-4551 and we can help you find what you are looking for in Detroit. You can work with a Realtor who has access to the multiple listing service, or MLS. You can also find properties for sale by owner on public posting boards online. There are also public auctions held by cities and counties in Michigan that frequently offer vacant land for sale, mostly due to unpaid taxes. Working with a real estate professional might be ideal if you are new to buying vacant land, they know the tips and tricks of the trade.
Look into the current and future zoning of the vacant land, will the municipality’s plans interfere with your own? Will you be able to request an exception? Are there any deed or usage restrictions or building requirements? Review the physical characteristics of the property, will it be large enough for your plans? Is there an excessive amount of clearing that needs to be done? Is it on a canal? Does it have direct access to tap into the utility system? Are there plans for utility expansion? Check into the plat maps and any surveys available to make sure there are not any surprise easements you are unaware of.
You’ve found the vacant land you want to buy. The next step in the process of buying, developing and profiting from vacant land in Detroit is the purchase! It’s time to negotiate an offer and fund the closing! How are you going to do that? Do you plan to pay cash, or do you need a loan? It is a lot more difficult to buy vacant land with a loan from a bank than it is to buy a building, residential or commercial. There are only a handful of banks that will loan on raw land, and they usually require a much larger down payment. Another option would be to form a partnership to invest in vacant land, and you may form an agreement to pool your funds to buy a larger portfolio of land with larger returns!
The next step in the process of buying, developing and profiting from vacant land in Detroit is to plan! Decide what you are going to do with the vacant land based on the current zoning. If you want to do something different than the current zoning will allow, apply to change the zoning. Will you build a single-family house or a multifamily building? If its commercial, will you build a single business building, or maybe it’s enough land to build a plaza!
The next step in the process of buying, developing and profiting from vacant land in Detroit is to develop! Find a builder that has a good track record and valid references to build your project. Make sure to keep tabs on their progress to verify they are building to your specifications and options.
Rent or Sell
The last step in the process of buying, developing and profiting from vacant land in Detroit is to rent or sell. For long term, regular payments over time, your best option would be to rent the property. This does come with additional landlord duties, so make sure you are aware of your responsibilities. If you do not want to be a landlord, then selling your new development would be your best option! Your profit margin will be more than if you just bought and resold a piece of vacant land.