--- title: How To Buy Raw Land description: Learn more about how To buy raw land. image: https://www.realized1031.com/hubfs/iStock-2149330126-modified-ddb40609-b561-4616-af2e-f7579f2ff2e6.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # How To Buy Raw Land Posted Apr 22, 2025 ![iS-1484178659](https://www.realized1031.com/hs-fs/hubfs/iStock-1484178659-modified-acb48f2a-2269-4344-a117-c3abd806346f.jpg?width=5760&height=3240&name=iStock-1484178659-modified-acb48f2a-2269-4344-a117-c3abd806346f.jpg) Raw land is property that hasn’t been developed or built upon. It lacks buildings or structures, public utilities like sewer, water, or power and paved roads. It’s speculative and generally doesn’t generate income. However, raw land can be an attractive opportunity to diversify your portfolio. The asset could generate a reasonable return, assuming the land has potential for development, but it carries unique risks, including long holding periods, [market fluctuations](https://www.realized1031.com/blog/what-is-the-difference-between-market-volatility-and-market-risk), and zoning uncertainties.. As such, putting money into this type of real estate requires careful planning and due diligence. The steps necessary to help you with raw land investments are as follows. ### #1–Define Your Investment Goals Raw land is a long-term investment that should fit with your future objectives. Questions to ask yourself before searching out raw land might include: - Its purpose: Are you buying land for residential, commercial, or agricultural development? Are you subdividing the land for multiple projects?  - Your investment strategy: Do you plan to hold the land for appreciation or develop it with infrastructure and utilities for future resale? - How to finance the buy: What is your budget, and how will you raise capital for the acquisition? It’s important to have a strategy in place before you begin your raw land search. Furthermore, understanding your goals can help you target properties that align with your investment strategy. ### #2–Explore Financing Options Financing raw land can be more challenging than financing other real estate forms. However, there are payment options available, including:  - *All cash*. If you have enough money, buying the land with cash can provide immediate ownership without worrying about loan applications or interest rates. - *Seller financing*. Depending on how motivated your seller is, they might be willing to finance part or all of the sale. Some sellers might also offer flexible payment plans. - *Land loans*. Some banks and credit unions specialize in lending money for land deals. However, these loans might have [higher interest rates](https://www.realized1031.com/blog/how-do-rising-interest-rates-affect-reits) and require a larger down payment.  - *Government programs*. Some state and federal programs could provide tax incentives or financing on land buys, depending on your plans for the acreage and where it’s located. Your[ financing strategy ](https://www.realized1031.com/blog/cant-get-financing-consider-a-dst)should be in place early on so you can take advantage of opportunities and make informed decisions. ### #3–Research the Destination Real estate is all about location. The location of raw land is especially critical. If you find acreage that offers development or appreciation potential, be sure to examine the following: - *Zoning laws*. If the land is zoned for your intended use, so much the better. If not, you’ll have to prepare paperwork and appear before planning and zoning committees and city councils to request zoning changes. This can take time and money. - *Infrastructure proximity*. If your targeted land is near roads and utilities, you could lower the costs of installing sewer, water, and power lines or developing paved streets. In some cases, the city where the land is located might agree to take on some infrastructure development costs. - *Market and economic trends*. Researching the local market requires understanding what asset type you might develop (retail, residential, or office) and how economic factors might impact the performance of those built assets. Studying the area’s historical data, supply and demand, and projected growth can be helpful. When researching the location of your target land, it’s a good idea to work with a local real estate broker or land specialist. These experts can provide insight concerning prime locations, market conditions, and additional information. ### #4–Conduct Due Diligence  Due diligence is collecting and analyzing data before acquiring raw land. Perform thorough due diligence before committing to a purchase. Key aspects to investigate include: - *Legal review*. Research the land’s title, zoning, easements, restrictions, and legal description. Other issues to consider are baseline documentation reports, previous liens, and mineral searches. - *Environmental assessment*. Analyze environmental reports and compliance with regulations. Also important is determining the state of the land’s soil (i.e., if it has chemicals or other pollutants). Topography should also be studied to determine suitability for development. - *Real estate tax assessments*. You’ll likely pay taxes on the land. Be sure you can afford these costs, as the land won’t generate immediate income. Hiring professionals such as surveyors, environmental consultants, and attorneys can help uncover potential issues before you close the deal. ### #5–Negotiate and Close the Deal After extensive research and due diligence, you’re ready to make an offer. Key points to negotiate and discuss include: - Price, payment terms, and financing - Contingencies based on inspections, environmental tests, and zoning approvals - Closing costs, fees, and other expenses Before finalizing the transaction, work with a real estate attorney, who can develop and review the contract to ensure that all legal aspects are covered. ### Adding Raw Land to Your Investment Goals Raw land is a strategic investment that requires research, financial planning, and due diligence. Understanding zoning laws, conducting proper inspections, and exploring financing options can help you make informed decisions and take advantage of opportunities that could result in profitable outcomes. If you want additional guidance on real estate investment strategies, visit [realized1031.com](http://realized1031.com/). *The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.* Learn Ways To Help Build Long-Term Real Estate Wealth [![Get Tips For Managing Real Estate Wealth](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/IPWM-eBook-250c.jpg?width=250&height=250&name=IPWM-eBook-250c.jpg "Learn new ways to use real ...") ](https://www.realized1031.com/blog/how-to-buy-raw-land#blogform) Download eBook ---   --- ### Get Tips For Managing Real Estate Wealth ![Learn Ways To Help Build Long-Term Real Estate Wealth](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/IPWM-eBook-550.jpg?width=550&height=650&name=IPWM-eBook-550.jpg) Learn new ways to use real estate to pursue your wealth goals. By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received. Search ### [Why Realized](https://www.realized1031.com/why-realized) - [Wealth Management](https://www.realized1031.com/the-wealth-management-gap) - [Why Realized](https://www.realized1031.com/why-realized) - [Our Process](https://www.realized1031.com/how-realized-works) - [Scenarios](https://www.realized1031.com/scenarios) - [Private Client Program](https://www.realized1031.com/private-client) - [Realized Exchange Services](https://www.realized1031.com/realized-exchange-services) ### [The Company](https://www.realized1031.com/about-us) - [The Team](https://www.realized1031.com/about-us) - [FAQ](https://www.realized1031.com/frequently-asked-questions) - [Testimonials](https://www.realized1031.com/testimonials) - [Press](https://www.realized1031.com/press) - [Careers](https://www.realized1031.com/careers) ### [Partners](https://www.realized1031.com/partners) - [Financial Advisors](https://www.realized1031.com/advisor) - [Broker Dealers](https://www.realized1031.com/partners/broker-dealers) - [Real Estate Agents](https://www.realized1031.com/partners/real-estate-agents) - [Certified Public Accountants](https://www.realized1031.com/partners/certified-public-accountants) ### [Resources](https://www.realized1031.com/resources) - #### Learn - [Articles](https://www.realized1031.com/blog) - [Glossary of Terms](https://www.realized1031.com/glossary) - [Capital Gains Tax Rates](https://www.realized1031.com/capital-gains-tax-rate) - #### Watch - [Video Library](https://www.realized1031.com/videos) - [Webinar Archive](https://www.realized1031.com/webinars) - #### Read - [Delaware Statutory Trust](https://www.realized1031.com/delaware-statutory-trust) - [Tenants-In-Common](https://www.realized1031.com/tenants-in-common-tic) - [1031 Exchange](https://www.realized1031.com/1031-exchange) - [Qualified Intermediary](https://www.realized1031.com/qualified-intermediary) - [Qualified Opportunity Zones](https://www.realized1031.com/opportunity-zones) #### Realized - 500 W 13th Street Austin, TX 78701 - (877) 797-1031 ##### [Contact Us](https://www.realized1031.com/contact-us) - [![Realized on Facebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-facebook-whiterev.png?width=60&height=60&name=social-facebook-whiterev.png)](https://www.facebook.com/Realized/) - [![Realized on LinkedIn](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-linkedin-whiterev.png?width=60&height=60&name=social-linkedin-whiterev.png)](https://www.linkedin.com/company/realized/) - [![Realized on YouTube](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-youtube-whiterev.png?width=60&height=60&name=social-youtube-whiterev.png)](https://www.youtube.com/c/Realized1031?sub_confirmation=1) - [![Realized Holdings, Inc. BBB Business Review](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/bbb/RZH2-bbb-seal.png?width=40&height=65&name=RZH2-bbb-seal.png)](http://www.bbb.org/central-texas/business-reviews/real-estate-investors/realized-holdings-llc-in-austin-tx-1000112948/#bbbonlineclick) - [![FEA Logo](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/fea/RZH2-fea-logo.png?width=82&height=65&name=RZH2-fea-logo.png "FEA Logo")](https://www.1031.org) SECURITIES DISCLOSURE Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized Holdings”). Securities and/or Investment Advisory Services may be offered through Registered Representatives or Investment Advisor Representatives of Realized Financial, Inc. ("Realized"), a broker/dealer, member [FINRA](https://www.finra.org)/[SIPC](https://www.sipc.org/), and registered investment adviser. Realized is a subsidiary of Realized Holdings, Inc. ("Realized Holdings"). Check the background of this firm on [FINRA's BrokerCheck](https://brokercheck.finra.org/firm/summary/22333). Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested. This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact the Realized Compliance department at 512-472-7171 or info@realized1031.com. - [Terms & Conditions](https://www.realized1031.com/terms-and-conditions) - [Privacy Policy](https://www.realized1031.com/privacy-policy) - [Form CRS](https://www.realized1031.com/hubfs/common-files/disclosures/FormCRS.pdf) - [ADV 2A](https://www.realized1031.com/hubfs/common-files/disclosures/ADV2A.pdf) - [Reg BI Disclosures](https://www.realized1031.com/hubfs/common-files/disclosures/RegBI.pdf) -   © 2026 Realized Holdings, Inc. ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "articleBody" : "Raw land is property that hasn’t been developed or built upon. It lacks buildings or structures, public utilities like sewer, water, or power and paved roads. It’s speculative and generally doesn’t generate income. However, raw land can be an attractive opportunity to diversify your portfolio. The asset could generate a reasonable return, assuming the land has potential for development, but it carries unique risks, including long holding periods, market fluctuations, and zoning uncertainties.. As such, putting money into this type of real estate requires careful planning and due diligence. The steps necessary to help you with raw land investments are as follows. #1–Define Your Investment Goals Raw land is a long-term investment that should fit with your future objectives. Questions to ask yourself before searching out raw land might include: Its purpose: Are you buying land for residential, commercial, or agricultural development? Are you subdividing the land for multiple projects? Your investment strategy: Do you plan to hold the land for appreciation or develop it with infrastructure and utilities for future resale? How to finance the buy: What is your budget, and how will you raise capital for the acquisition? It’s important to have a strategy in place before you begin your raw land search. Furthermore, understanding your goals can help you target properties that align with your investment strategy. #2–Explore Financing Options Financing raw land can be more challenging than financing other real estate forms. However, there are payment options available, including: All cash. If you have enough money, buying the land with cash can provide immediate ownership without worrying about loan applications or interest rates. Seller financing. Depending on how motivated your seller is, they might be willing to finance part or all of the sale. Some sellers might also offer flexible payment plans. Land loans. Some banks and credit unions specialize in lending money for land deals. However, these loans might have higher interest rates and require a larger down payment. Government programs. Some state and federal programs could provide tax incentives or financing on land buys, depending on your plans for the acreage and where it’s located. Your financing strategy should be in place early on so you can take advantage of opportunities and make informed decisions. #3–Research the Destination Real estate is all about location. The location of raw land is especially critical. If you find acreage that offers development or appreciation potential, be sure to examine the following: Zoning laws. If the land is zoned for your intended use, so much the better. If not, you’ll have to prepare paperwork and appear before planning and zoning committees and city councils to request zoning changes. This can take time and money. Infrastructure proximity. If your targeted land is near roads and utilities, you could lower the costs of installing sewer, water, and power lines or developing paved streets. In some cases, the city where the land is located might agree to take on some infrastructure development costs. Market and economic trends. Researching the local market requires understanding what asset type you might develop (retail, residential, or office) and how economic factors might impact the performance of those built assets. Studying the area’s historical data, supply and demand, and projected growth can be helpful. When researching the location of your target land, it’s a good idea to work with a local real estate broker or land specialist. These experts can provide insight concerning prime locations, market conditions, and additional information. #4–Conduct Due Diligence Due diligence is collecting and analyzing data before acquiring raw land. Perform thorough due diligence before committing to a purchase. Key aspects to investigate include: Legal review. Research the land’s title, zoning, easements, restrictions, and legal description. Other issues to consider are baseline documentation reports, previous liens, and mineral searches. Environmental assessment. Analyze environmental reports and compliance with regulations. Also important is determining the state of the land’s soil (i.e., if it has chemicals or other pollutants). Topography should also be studied to determine suitability for development. Real estate tax assessments. You’ll likely pay taxes on the land. Be sure you can afford these costs, as the land won’t generate immediate income. Hiring professionals such as surveyors, environmental consultants, and attorneys can help uncover potential issues before you close the deal. #5–Negotiate and Close the Deal After extensive research and due diligence, you’re ready to make an offer. Key points to negotiate and discuss include: Price, payment terms, and financing Contingencies based on inspections, environmental tests, and zoning approvals Closing costs, fees, and other expenses Before finalizing the transaction, work with a real estate attorney, who can develop and review the contract to ensure that all legal aspects are covered. Adding Raw Land to Your Investment Goals Raw land is a strategic investment that requires research, financial planning, and due diligence. Understanding zoning laws, conducting proper inspections, and exploring financing options can help you make informed decisions and take advantage of opportunities that could result in profitable outcomes. If you want additional guidance on real estate investment strategies, visit realized1031.com. The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.", "articleSection" : [ "Real Estate Investing" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2025-04-22T14:00:04+0000", "datePublished" : "2025-04-22T14:00:04+0000", "description" : "Learn more about how To buy raw land.", "headline" : "How To Buy Raw Land", "image" : { "@type" : "ImageObject", "height" : 4219, "url" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/iStock-2149330126-modified-ddb40609-b561-4616-af2e-f7579f2ff2e6.jpg", "width" : 7500 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/how-to-buy-raw-land", "name" : "How To Buy Raw Land", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" }, "thumbnailUrl" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/iStock-2149330126-modified-ddb40609-b561-4616-af2e-f7579f2ff2e6.jpg" } ```