5 Steps To Buying Vacant Land In Pueblo Colorado

5 Steps To Buying Vacant Land In Pueblo Colorado

5 Steps To Buying Vacant Land In Pueblo Colorado

From the video:

Are you considering buying vacant land in Pueblo Colorado? We’ve broken it down for you in 5 easy steps from a macro perspective. Here are the steps to follow:

Step 1. Why Land

Before buying vacant land in Pueblo, Colorado, ask yourself: What is my goal with land in Pueblo Colorado?

Why land?
Why land?

Will I be reselling the land after my purchase? Am I looking to build on this land? If so, what am I going to build? Am I looking for commercial or residential land? These answers will guide you to finding your ideal Colorado property.

Step 2. Locate the Land

The location of a property plays an important of determining its value. Pueblo County enjoys 4 seasons in a year which makes it worth having property there to enjoy more than 250 sunny days each year.

There are a handful of ways to find vacant land to buy in Pueblo Colorado. First of all, you can call or text us at (313) 349-0434 and we can help you find what you are looking for in Pueblo.

You can work with a Realtor who has access to the multiple listing service, or MLS. There are also public auctions held by cities and counties in Colorado 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. 

Use your computer to search for land in Pueblo Colorado

You can also search for land online using a bunch of free tools like Land Watch, Lands of America, or Youtube.

Step 3. Evaluate the Land

Real estate professionals have easy access to most sources of information for research on vacant land. It does not hurt to do your own research, just to double-check. 

Search the county records for the deed and ownership history. There should be a nice, clean chain of owners from one to the next. If not, there will have to be legal paperwork done that takes time and costs extra money. If the chain of owners is not clean and easy to follow, it could mean issues for you when you go to purchase the property. This is why the legal paperwork needs to be done.

This can be a really complex and messy process, it might be worth considering using a title company to help you close the property (let them do the messy work for you!).

Make sure to look up the property taxes, if there are any open certificates and you purchase the property, the owner might be able to take the property back from you before the waiting period is over, typically 4-5 years. 

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! You don’t want to get stuck with someone else’s garbage or junk.

There could be unwanted junk or debris on the land
There could be unwanted junk or debris on the land.

Will the property be large enough for your plans (you why from step 1)? 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.

Step 4. Finance your Land

You’ve found the vacant land you want to buy. Now it’s time to 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!

At Compass Land USA we offer owner financing on almost all of our properties. There are normally 3 different plans to choose from. We can also work with you to create a custom plan that fits your budget.

3 Owner finance plans with Compass Land USA
3 Owner finance plans with Compass Land USA

Step 5. Hold your Land

Now that you’ve purchased your land, what is your holding plan? Are you going to flip it right away, or will you hold it for a few years? Keep in mind, the faster you make a profit, the larger tax you may have to pay. The longer you hold it, the less capital gain tax you will have to pay, but keep in mind there are usually annual taxes and possibly owner’s association dues. 

Are you planning to hold it for the long-term and use it as a personal campsite? Or maybe build a base to be used as a hunting cabin? This comes back to your why! Make sure you’ve really thought out step 1 before you’ve purchased property in Pueblo Colorado.

Give Compass Land USA a call or text today at (313) 349-0434 or send us a message to discuss buying vacant land in Pueblo Colorado!

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