The Ultimate Due Diligence Checklist for Land Investors
When it comes to land investing, due diligence is one of the most important steps in the process.
Whether you’re a new investor or have a few deals under your belt, the way you handle due diligence can determine your success.
Done right, it protects you from costly mistakes, ensures you’re paying the right price, and gives you confidence in your deals.
Done poorly, or skipped altogether, and you risk buying property with hidden issues that can sink your investment.
In this article, we’ll walk through a comprehensive due diligence process that you can apply to every land deal.
Think of this as a repeatable framework for evaluating properties quickly and effectively.
Why Due Diligence Matters in Land Investing
Unlike houses or commercial buildings, vacant land often comes with hidden challenges that aren’t obvious at first glance.
Some parcels look great in photos but turn out to be landlocked, heavily sloped, or riddled with restrictions.
Others look like throwaways but are excellent deals once you understand the details.
The goal of due diligence is simple: verify what you’re buying, uncover risks, and confirm value.
By following a consistent process, you protect yourself and strengthen your business over the long term.
Step 1: Desktop Research (Computer Due Diligence)
The first step is analyzing the property from your computer. This is your “first line of defense,” and in many cases,
you can eliminate a bad deal in 10–15 minutes.
Key things to check:
Access and Road Frontage:
Does the property touch a public road? If it only has an easement, is there an actual cleared path?
Without access, the property is far less valuable.
Flood Zones and Wetlands:
Use FEMA maps, county GIS systems, or tools like Land Portal. Determine if the property sits in a floodplain or has wetland areas.
Small sections may not be an issue, but if the majority of the property is impacted, it could affect value and use.
Slope and Topography:
Look at contour lines or use Google Earth’s 3D view. Ask: is the land buildable? Steep slopes may limit construction potential.
City Limits:
Being inside city limits usually means more zoning restrictions and potential permitting requirements.
Land outside of city limits tends to be more flexible.
Neighboring Properties:
Check the area using Google Earth or satellite imagery. Are there other homes, farms, or similar land uses nearby?
This gives clues about what’s realistic for your property.
Step 2: Zoning and Restrictions
The next step is contacting the county or city zoning department.
This is where you confirm what you can and cannot do with the land.
Questions to ask zoning officials:
- Are mobile homes allowed?
- Can the property be used for RVs, camping, or hunting?
- What are the building setbacks (distance from road, water, or property lines)?
- Is subdividing allowed, and if so, what is the minimum lot size?
- Are there special restrictions unique to this jurisdiction?
Every restriction narrows the pool of potential buyers.
Understanding zoning up front helps you determine both the property’s potential and its resale market.
Step 3: Deeds, Records, and Legal Checks
Once you’ve confirmed zoning, contact the county recorder’s office to pull the most recent deed.
This step ensures that the person selling the land actually owns it and that no surprises are hidden in the records.
What to look for in the deed:
Ownership:
Is the seller listed? Are there multiple owners who must also sign?
Restrictions & Easements:
Some deeds contain restrictions (e.g., “unbuildable lot,” “for drainage use”) or easements that give utilities or neighbors rights to parts of the land.
Other Documents:
Ask if there are surveys, plats, or soil/perk tests already on file. These can save you time and expense.
💡 Pro Tip: Use AI tools like ChatGPT to review deeds. Uploading a deed and asking for a summary can quickly highlight easements, tax issues, or restrictions that may be buried in legal language.
Step 4: Utilities and Infrastructure
Utilities are a major factor in land value and usability. You’ll want to confirm availability before committing to a purchase.
Electricity
Contact the local power company. Is service available near the property? How far must it be extended, and at what cost?
Water & Sewer
In rural areas, wells and septic systems are the norm. That’s not a problem, but it’s good to know ahead of time.
Perc Test
A perc test determines if the soil can support a septic system.
For small acreage lots (especially under 10 acres) or lots intended for residential use, a perc test is highly recommende
Step 5: Price and Market Value
Even if everything checks out, price is the ultimate factor. A good property bought at the wrong price is still a bad deal.
Run Comps
Look at recent sales of similar properties in the area.
Confirm Margins
Land investors typically aim to purchase at 40–45% of market value.
Final Evaluation
Evaluate based on price, property quality, and location. You don’t need perfection across all three,
but one must stand out enough to justify the deal.
Step 6: Boots on the Ground
Never skip this step.
Photos and maps can only tell you so much, you need someone physically at the property.
Options for boots on the ground:
- Hire a drone photographer (services like droners.io make this easy).
- Work with a local realtor who knows land.
- Visit yourself if feasible.
What to ask them to check:
- Walk the property and note any issues not visible on maps (flooding, trash, encroachments, etc.).
- Confirm road access and slope.
- Take high-quality photos and videos you can later use for marketing.
For $150–$250, you eliminate surprises and get assets that help sell the property faster.
Step 7: Decide, Negotiate, or Walk Away
After completing all these steps, you should have a clear picture of the property’s risks, value, and potential.
From here, you can:
- Move forward confidently with the purchase.
- Renegotiate the price if issues were uncovered.
- Walk away if the property doesn’t meet your criteria.
Final Thoughts
Due diligence isn’t about overanalyzing or dragging out the process.
It’s about having a repeatable system that helps you make fast, confident decisions.
The more deals you review, the faster you’ll get, often completing due diligence in 48 hours or less.
By following this checklist, you’ll protect yourself from costly mistakes, strengthen your negotiation power,
and ultimately scale your land investing business with less stress and more profit.
✅ Next Step: If you’d like to see these steps broken down visually, check out our detailed video walkthrough on due diligence.
Watch it here.
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