How To Raise Money To Buy Land | askBAMLand

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As someone who has been in the real estate industry for over a decade, I know that buying land can be a lucrative investment if you play your cards right.

While buying land outright is ideal, it's not always feasible. Fortunately, there are several ways to raise funds for a land purchase, such as taking out a loan, crowdfunding, working with investors, asking for donations, or taking advantage of government grants from select states.

As someone who has helped countless clients purchase land, I understand the process of buying land can be overwhelming. That's why I'm here to guide you through the process. In this article, I will provide you with the tools you need to prepare for a land purchase, including tips for buyers and investors. With the right preparation and financial backing, you can make your dream of land ownership a reality.

Key Takeaways

  • Understanding the financial aspects of land purchase is crucial
  • There are several ways to raise funds for a land purchase
  • Proper preparation is key to achieving your dream of land ownership.

Table of Contents

Raising Funds for Land Purchase

As I began my search for the perfect plot of land to build my dream home on, I quickly realized that buying land can be expensive. I needed to raise funds to make my dream a reality. Here are some of the ways I raised money for my land purchase:


One of the best ways to raise money for your land acquisition is to take advantage of crowdfunding platforms - with the most popular options being Kickstarter and GoFundMe.

I created a fundraising campaign on these platforms and shared it on my social media accounts like Facebook and Twitter.

I also reached out to friends and family to help spread the word. Crowdfunding websites can help you reach a large audience and raise money quickly.


If you have a real estate deal in mind, you can try to attract investors to help fund your land purchase.

The Jobs Act has made it easier for small businesses to raise money from accredited investors. You can also reach out to investors through your personal and professional networks.

Successful investors can help your raise capital for your real estate acquisition. However, you need to present an attractive investment property if you want to bring in savvy investors.


Donations are another way to raise funds for a land purchase. I created a fundraiser and asked for donations from friends and family. I also reached out to local businesses and organizations to see if they would be willing to donate to my cause.

Crowdfunding Platform

There are several crowdfunding platforms specifically designed for real estate deals. These platforms allow you to raise money from accredited investors who are interested in investing in real estate.

State Government Grants

If you live in Mississippi or Texas, you may be eligible for government grants and loans to help fund your land purchase. Check with your local government to see if you qualify for any programs.

Raising capital for a land purchase can be challenging, but with the right approach, it is possible. Whether you choose to crowdfund, attract investors, or seek out donations, there are many options available to help you achieve your dream of owning land.

The Process of Buying Land

When it comes to buying land, the process can seem overwhelming. However, with a little research and preparation, it can be a smooth and successful experience. Here's a breakdown of the land buying process:

Determine Your Needs

Before you start searching for land, determine your needs. What do you plan to do with the land? Will you be building a home or using it for recreational purposes? How much acreage do you need?

Answering these questions will help you narrow down your search and find the right piece of land for your needs.

Research Zoning and Regulations

It's important to research zoning and regulations before making an offer on a piece of land. Zoning laws can dictate what you can and cannot do with the land.

Regulations can include anything from building codes to environmental restrictions. Make sure you understand all the regulations that apply to the land you are interested in.

Find Land for Sale

There are many ways to find land for sale. Real estate websites, local newspapers, and word of mouth are all good places to start.

You can also work with a real estate agent who specializes in land sales. They can help you find properties that meet your needs and guide you through the buying process.

Making an Offer

After evaluating various properties, you will need to select one that meets your needs. As soon as you feel like you are ready, an offer must be made to the property owner. This is where working with a real estate agent can be helpful.

They can help you determine a fair price to offer based on comparable sales in the area. Make sure your offer is contingent on any inspections or due diligence you want to perform.

Due Diligence

Before closing on the land purchase, it's important to perform due diligence. This can include a title search, environmental inspections, and surveying the property.

Make sure you understand any easements or encumbrances on the land and that there are no surprises that could affect your use of the property.


Once you've completed due diligence, it's time to close on the land purchase. This is where you'll sign all the necessary paperwork and pay any closing costs. Make sure you understand all the terms of the sale and that you have the necessary funds to complete the transaction.

Buying land can be a complex process, but with the right preparation and guidance, it can be a rewarding experience. Remember to do your research, work with professionals, and understand all the regulations and restrictions that apply to the land you're interested in.

Financial Aspects of Land Purchase

When it comes to buying land, there are several financial aspects to consider. The most significant factor is financing. Unless you have enough cash to buy the land outright, you will need to secure financing through a bank or other lending institution.

Credit Score

One of the first things that lenders look at is your credit score. A good credit score will increase your chances of getting approved for a land loan and will also help you secure a lower interest rate.

It's essential to check your credit score before applying for a loan and take steps to improve it if necessary. A good credit score will also improve yoru chances of working with private money lenders  and qualifying for a home equity loan when you are trying to raise capital.


When applying for a land loan, you will need to make a down payment with your own money. The amount required will vary depending on the lender and the type of loan you are applying for. Generally, a larger down payment will result in a lower interest rate and better loan terms.

Financial Resources

There are several options for financing a land purchase, including local banks, credit unions, and owner financing.

Local banks and credit unions are often the best choice for those who have a good credit score and a solid financial history. Owner financing, where the seller acts as the lender, can be an attractive option for those who have difficulty securing traditional financing.


It's essential to have a budget in place before purchasing land. This will help you determine how much you can afford to spend and will also help you avoid overspending.

Be sure to factor in all costs, including the down payment, monthly loan payments, property taxes, and any improvements or construction costs.

In conclusion, buying land can be a significant investment, and it's essential to consider all of the financial aspects before making a purchase. By securing financing, making a down payment, and having a budget in place, you can ensure that you make a sound financial decision and invest in a property that will provide long-term value.

Effectiveness of Government Programs for Buying Land

If you are wondering how to raise money to buy land, you should consider the effectiveness of  government-assisted programs. After evaluating different programs such as the USDA's Farm Service Agency loans and grants, I found that these programs can be effective in helping individuals finance their land purchases.

USDA Farm Service Agency

The USDA's Farm Service Agency provides a variety of loan programs for farmers and ranchers, including direct loans, guaranteed loans, and emergency loans. These loans can be used to purchase land, as well as to improve existing farms and ranches.

Department of Housing and Urban Development (HUD

In addition to the USDA's loan programs, I also found that there are other government resources that can help finance land purchases.

For example, the Department of Housing and Urban Development (HUD) provides grants to help low-income families and individuals purchase homes and land. Grants like the ones from HUD can be used to cover the down payment and closing costs associated with purchasing land.

Overall, my research suggests that government programs and initiatives can be a valuable resource for individuals looking to finance their land purchases. By taking advantage of these programs, individuals can access the funding they need to acquire the land they want.

Preparing for Land Purchase

Before buying land, it is important to do your due diligence and prepare yourself for the purchase. Here are some key factors to consider:

Developed Land

When looking to purchase land, consider whether you want to buy developed or undeveloped land.

Developed land typically has existing infrastructure, such as roads and utilities, which can save you time and money in the long run. However, developed land can also be more expensive than undeveloped land.


The type of soil on the land can affect the type of crops you can grow or the type of foundation you can build on. It is important to have the soil tested to ensure it is suitable for your intended use.

Building Plans

If you plan to build on the land, it is important to have building plans in place before purchasing the land. This will help you determine the type of land you need and ensure you have the necessary permits and approvals in place.


When purchasing land, consider the availability of utilities such as water, electricity, and gas. If the land does not have access to these utilities, it can be expensive to bring them in.

Overall, preparing for a land purchase requires careful consideration of various factors. By doing your due diligence and considering all the necessary factors, you can ensure a successful land purchase.


Brittany Melling

Brittany Melling

Brittany has been in the land business since 2020 when the world was starting to shut down. Since then, we’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans mostly in the western United States. We’ve been trained by experience, land acquisition courses, and hundreds of hours meeting with county assessors and clerks, zoning officials, realtors, and land investors. We’ve answered hundreds of questions from people regarding the buying and use of land.

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