July 12, 2023

Demystifying Land Investment: A Comprehensive Guide for First-Time Land Buyers

Venturing Into the World of Real Estate Investments

Can be a daunting task, especially when it comes to buying land for the first time.

However, land investment can offer a slew of advantages, from diversifying your portfolio to potentially high returns. 

This guide aims to demystify land investment and provide first-time buyers with the knowledge and confidence needed to make informed decisions. Let's get started!

Why Invest in Land?

Land is a finite resource. As Mark Twain famously said

"Buy land, they're not making it anymore."

But why should one consider investing in land? Here are some compelling reasons:


Land is a versatile investment. You can develop it, lease it, or hold onto it for potential appreciation. The array of choices makes land investment adaptable to a wide variety of financial strategies.

Lower Maintenance

Compared to other real estate investments, land requires less maintenance. There's no need to worry about repairs, tenants, or property management. 

Types of Land Investments

Land is a broad category with many subtypes, each offering its unique pros and cons. Understanding these is crucial to making a wise investment decision.

Residential Land

This is land zoned for homes and residential communities. Factors like location, amenities, and future development plans significantly influence the value of residential land.

Commercial Land

Commercial land is zoned for business use. This could range from retail and office spaces to hotels and special-purpose buildings. 

Agricultural Land

Agricultural land is used for farming or ranching. The land's fertility, water accessibility, and climate can affect its productivity and value. 

Undeveloped Land

This is raw land in its natural state, untouched by any improvements like roads, utilities, or buildings. While it's often cheaper to purchase, developing it can be complex and expensive.

Assessing Land for Investment

Once you've decided to invest and have a rough idea of the type of land you're interested in, the next step is assessing potential investments. Here are some factors to consider.


The old real estate adage, "location, location, location," applies to land too. Proximity to amenities, accessibility, and neighborhood trends can significantly influence land values.

Zoning Regulations

Zoning regulations determine what you can and can't do with the land. It's essential to ensure the land's zoning aligns with your investment goals.

Environmental Factors

Factors like soil quality, flood risk, and environmental restrictions can affect the land's usability and development cost.

Making the Purchase

You've done your research, assessed potential investments, and found the perfect piece of land. Now, it's time to make the purchase. 

Financing the Purchase

Unlike purchasing developed real estate, buying land can be more challenging to finance. Traditional lenders often view land loans as riskier, so you may need to explore alternative financing options Check out this guide to land loans

Working with a Realtor

A realtor experienced in land sales can be invaluable. They can help you navigate the complexities of the purchase process, negotiate better terms, and avoid potential pitfalls.

Due Diligence

Before finalizing the purchase, you'll need to conduct due diligence.

This includes verifying the property's title, checking for liens or encumbrances, confirming zoning regulations, and obtaining an environmental assessment.

Developing Your Land

Depending on your investment strategy, you may choose to develop the land. Here's a general idea of what that could entail.


Planning is the first step in land development. This process involves deciding what to build, sketching preliminary designs, and considering how to make the best use of the land.

Hiring a land planner and an architect can be a smart move at this stage.

Approval Process

Most developments need approval from local or state government entities. This process may involve presenting your plans, addressing any concerns, and ensuring the development complies with local codes and regulations.


Once approved, you can begin construction. For this phase, you'll likely need to work with various professionals, including contractors, engineers, and construction crews.

Tips for First-Time Land Buyers

To wrap up, here are some tips to keep in mind as you embark on your land investment journey:

Start Small

For your first land investment, consider starting small. A smaller investment can help you learn the ropes without excessive risk.

Be Patient

Land investments often require a long-term perspective. It can take time to realize a return on your investment, especially if you're banking on land appreciation or planning to develop the land.

Seek Professional Advice

Brenda Richey and her team have bought, sold and developed land for years and know the ins and outs of investing in Southeast Oklahoma land. While your real estate agent is just one member of the team, the Brenda Richey Group has the network to help you every step of the way, both before and after you purchase. 

While land investment can seem overwhelming at first glance, understanding the basics can help demystify the process and open the doors to this potentially profitable realm of real estate.

Armed with the knowledge from this guide, you're now equipped to make informed decisions and embark on your land investment journey.

Remember, every seasoned land investor started as a beginner. Brenda Richey and her team are ready to help you take the next step in your investment journey.

Chat with our team today to discuss all of the opportunities!

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