Due Diligence for vacant land

[Jessica Muto]

Hello!

I've done some searching for this information on the forums and haven't found it, but if there is a thread or blog answering my question, I'd love to read it!

The question is this: What due diligence must be done before buying a parcel of vacant land? I have some due diligence checklists and I assume many of the items there are the same for land, but are there any items specific to land that would not appear on a checklist for buying a house or multi family? 

I am looking for the best way to find the facts in a timely fashion to make this decision, so if anyone has tried and true strategies or ideas, I am all ears!

Thanks so much in advance,

[Jay Hinrichs]

Jessica  that would be quite the beginner project ( which it sounds like your just starting your journey) @Ned Carey  Ned is correct you need to start at the planning department and work backwards.. you read the zoning code they have its usually on line.. it will be very specific to that zone as to what you can and cannot do.. it will tell you whats allowed out right and what is allowed with a conditional use.. it will tell you if you need to have public hearings on your proposed development etc etc.. you would not do a phase one until you do a bunch of free leg work first.. and until your in contract a phase one depending on were your at is just a historical look see of the property to see if there are any environmental concerns  IE old Mill site or some other hazardous industrial site.. And on some ag land I have done soil testing because not all soil treatments for ag are conducive to having people live or work on top of those soils.

Also you can talk with a local for profit land planning company or Civil engineer you will need them eventually usually they will give you and hour for free.. 

But what I do if its a new venue I will hire them for usually 5 to 10k to give me a written assessment.. now this is after I have the property under contract and part of my due diligence which with development dirt an seller will understand you need ample due diligence unless the price is such that you just go forward regardless. 

And for a reality check it would be rare to the extreme that a beginner developer could get financing.. you would probably need to pool your private investors and at least buy the land in cash.. Experience matters in development deals its one of the major criteria.. 

However if your looking for something to build like airplane hangers..  I own owned an airplane hanger condo for years and loved it ultimate man/women cave to store your planes and all other manner of things we all need to store.. these can be great developments.. as well..  those that own aircraft pay their rent .. or like in our case we bought the condo.

Just need to determine if the airport has sufficient resident aircraft owners to meet demand.. if you go to AIRNAV.com and put the identifier in  Like our airport is KUOA  it will give you a google earth shot and tell you how many airplanes are based there if there is a fixed based operator etc etc .. 

I think Hanger rentals are one of the best rentals a person can buy hands down .. you get the right airport and right demand and its a no brainer.. you will never work with residential tenants again.. :)