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Introduction to 10 Tips for Developing Raw Land

Wouldn't it be great to own some land like this? Yes -- once you know how to avoid the pitfalls.

Siri Stafford/Lifesize/Thinkstock

There's something about standing on your own private acreage and letting that soil sift through your fingers; a feeling of pride, independence and security as you survey your personal property. You're a landowner!

But besides pride, there are plenty of good reasons to buy raw land. Price is one of them. You can find reasonably priced raw land parcels across the country. This is particularly true in rural, less populated areas. And while financing for a raw land purchase is harder to obtain from your bank, you can often get it through the seller at below-market rates.

Raw land isn't a bad investment either. If you purchase the right parcel, it will continue to appreciate. Raw land investments don't fluctuate as much as your stock portfolio either.

Then there's the earning potential. If you develop your raw land, it can increase in value in a short time. You can convert it into a recreational facility. Rent it as farmland. Build housing or a hotel. Developing your raw parcel can increase its value by three to five times its original price [source: Hanlin]. That is if you do it right and avoid the pitfalls. Read on to learn some tips for developing your raw land.

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