Ali Ata: Four Things to Consider when Investing in a Vacant Lot

Ali Ata says there’s much to gain from investing on a vacant lot. With the right approach, it can become one of the most profitable investments you can make. But despite how simple it may seem—it’s just a raw piece of land, after all—getting the most out of your vacant lot requires several key considerations. Here are some you need to keep in mind:

1. Zoning

The profitability of your land will depend on what you can build on it. Call your local planning and zoning department and inquire about the land’s zoning classification, as well as examples of buildings that fall within each category. You also need to ask if the land has usage restrictions. For instance, if the lot is in a residential zone, you may not be able to build an animal farm on it.

2. Access

What good is a property if you can’t access it, right? If your lot is surrounded by other private properties, you may not be able to access it without asking your neighbors for passage. This could mean needing to offer an incentive—usually money—to grant you such a favor.

3. Utilities

Access to water, electricity, gas, sewer, phone lines, and other basic public utilities is important. Even if all you want to build is a simple home, doing so in a place that doesn’t even have running water would be very inconvenient.

4. Flood risk

Ali Ata says lots that have a high risk of getting flooded are very hard to insure. Although lands close to bodies of water make for attractive investments, some of them are prone to flooding. A good way to determine an area’s flood risk is to check FEMA flood maps.

Taking the right precautions will help you avoid expensive repercussions from your investment, as well as disappointing returns. A real estate investment expert can help you identify all the areas you need to check to ensure that you make educated decisions about your investment.