Things To Know Before Investing In A Commercial Land


In this blog, we will discuss some tips that tenants can follow before investing in commercial land. Landlords should be aware of your rights as a tenant and the responsibilities of the landlord under the law. Tips on how to ensure that you are treated fairly and do not encounter problems after they rent their property.

1. Land Check: Verify Location and Utilities Before Buying a Commercial Land

The first thing to know about commercial land is its location. Check with your state and municipal governments to make sure they’re not planning on redeveloping any part of town in which your desired site is located. Knowing this information will help you decide whether or not it’s a wise investment.

At this point, you may need to go back and rethink if investing in that particular property is something you really want to do.

2. Technical Problems & Survey: How much will it cost to fix?



Businessman and pile of coins and house model

One of the most important factors to consider before purchasing commercial land is that you have a survey conducted. It’s important to understand the topography and land value so that you can effectively negotiate with potential sellers. This can help you identify potential hazards such as landslides, contaminated water or pollution from nearby buildings. The average cost to fix these problems is around $5,000 – $25,000 per issue depending on the severity of it. A good way to avoid this costly mistake is to make sure your survey includes an environmental hazard search.

3. Lease & Registration Issues: Timeframe Details Before Registering a Commercial Land

When investing in commercial land, it is important to know your timeframe before registering the property. For instance, are you planning on using it as a temporary lease or an indefinite one? Temporary leases can last anywhere from 3-12 months and need to be registered annually or biannually depending on the state law. A non-temporary lease lasts for at least 12 months, requires registration with the state every three years and has tax rates based on its term length.

4. Location Considerations: Zoning regulations and economic feasibility

When you buy commercial land, you must keep location in mind. Zoning regulations are typically very specific and if they do not match the type of business you want to run, then there is no point investing. For example, if you want to open a restaurant but the zoning regulations prohibit businesses with food handling facilities from operating within that area, then it is not a good investment. You need to know economic feasibility as well.

5. Building Plans & Design Mistakes

As with buying any type of property, there are a few steps to follow before investing in commercial land. First and foremost, you should always have your own plans and surveys completed so that you have an idea of what you’re looking at. Be sure to check with the government regarding any zoning laws before proceeding too far. And finally, be sure to talk with experienced real estate professionals like Los Angeles Investments who will know all the nuances of buying commercial land in LA County.

6. Notarial Documents & Surveys – Do you know what you are signing?

The last thing to make sure you’ve done before buying commercial land is to have notarial documents and surveys. Notarized documents establish legal rights, and the survey helps you understand what type of structure will be permitted on the property. Plus, this step can help you determine whether or not a new structure is needed. The survey also shows where all of the utilities are located which means you will know what to plan around when developing your property.

7. Contract Signing – Missing Words Can Cost You!

Contract signing is one of the most important parts of buying commercial land. If a word is missing, or spelled incorrectly, you may be required to sign the document anyways or face ramifications. Contractors might avoid using any unknown words in their contract agreements. When it comes to formalizing your business transactions, you can’t take anything for granted. Make sure that each and every point is thoroughly understood before any legal contracts are signed.
In summary, there are plenty of hurdles when it comes to buying commercial land- but with this post I hope we cleared up some confusion about what constitutes as a major stumbling block for new investors!

Do You Really Want to Invest in Commercial Land?

Investing in commercial land can be a rewarding investment, but it’s important to do your research and not jump into a deal just because you can afford it. Carefully consider the location, zoning restrictions, utilities like access to water and electricity, as well as other factors that could influence the success of your investment. Be sure to speak with a financial advisor before signing any legal agreements to make sure you are getting the best possible deal for yourself!

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