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How To Buy Land For Sale In Colorado


If you’re considering buying land for sale in Colorado, you’re making a decision that can offer both personal satisfaction and financial gain. From the Rocky Mountains to the vast plains, Colorado’s stunning landscapes make it a desirable location for rural business development. This guide will walk you through the process, from finding the right plot to financing your purchase.

Where To Find Land in Colorado For Sale?

Finding land for sale in Colorado involves several steps. Here are some key resources to start your search:

  • Real estate websites.
  • Local realtors with specialization in land purchases.
  • County records.
  • Auctions.
  • Networking can help find non-advertised land.

Is It Worth Buying Land In Colorado?

Determining if it’s worth buying land in Colorado depends on your goals and the specific characteristics of the land. Here are some factors to consider:

Appreciation Potential

Colorado’s population growth and economic development can drive land value appreciation, especially in areas near Denver, Boulder, and Colorado Springs.

Development Opportunities

Consider whether the land is suitable for residential, commercial, or agricultural development, which can significantly enhance its value.

Market Trends

Research local market trends and future development plans. Areas slated for infrastructure improvements or new amenities often see increased property values.

Environmental and Zoning Regulations

Ensure you understand any environmental restrictions and zoning laws that may affect your intended use of the land.

How Much Is Land For Sale in Colorado?

The cost of land in Colorado varies widely based on location, size, and land use potential. Here are some general price ranges:

  • Urban areas: Land in or near cities like Denver, Boulder, and Fort Collins can be quite expensive, often ranging from $100,000 to over $1,000,000 per acre.
  • Suburban areas: In suburban regions, prices may range from $10,000 to $100,000 per acre, depending on proximity to urban centers and development potential.
  • Rural areas: Rural land can be more affordable, with prices ranging from $1,000 to $10,000 per acre. However, prices can increase in scenic or recreationally valuable areas like those near mountain ranges or lakes.
  • Agricultural land: Farmland prices vary but generally fall between $1,500 to $5,000 per acre, depending on soil quality, water access, and location.

Using the SBA 504 To Purchase Land in Colorado 

The SBA 504 loan program is designed to help small businesses purchase fixed assets like real estate and equipment. It offers long-term, fixed-rate financing with lower down payments than conventional loans.

Loan Structure

The loan is typically structured with 50% of the financing coming from a traditional lender (bank or credit union), 40% from a Certified Development Company, such as CEDCO, and 10% from the borrower.


To qualify, your business must meet SBA size standards, be for profit, and operate in the United States. Additionally, the project must create or retain jobs or meet public policy goals.

Use of Funds

SBA 504 loans can be used to purchase land and buildings, construct new facilities, or renovate existing ones. One important caveat is that the land must be used for business operations and not for investment purposes.

Benefits of SBA 504 Loans For Purchasing Land In Colorado

The SBA 504 loan program offers a range of benefits that make it an attractive option for small businesses looking to purchase land, buildings, or other fixed assets. Here are some of the key advantages:

Lower Down Payment

One of the most significant benefits of the SBA 504 loan is the lower down payment requirement. Typically, only 10% of the project’s cost is required from the borrower, compared to the 20-30% required for traditional loans. This lower down payment preserves cash flow, allowing businesses to invest more capital into other areas of growth and operation.

Fixed Interest Rates

The CDC portion of the SBA 504 loan comes with a fixed interest rate, which can provide financial stability over the long term. Fixed rates mean that your monthly payments remain consistent, protecting you from the risk of rising interest rates and making it easier to plan and budget for your business expenses.

Interest rates for the SBA 504 loan are generally more favorable than conventional commercial loans. This is because the SBA guarantees a portion of the loan, reducing the risk for lenders and allowing them to offer better rates.

Long Loan Terms

SBA 504 loans offer long repayment terms, typically ranging from 10 to 25 years. The longer terms result in lower monthly payments, easing cash flow management and allowing businesses to allocate funds to other important operational needs. For real estate purchases, terms usually go up to 25 years, while equipment loans can extend up to 10 years.

Larger Loan Amounts

The SBA 504 loan programs can finance larger projects than other SBA loan problems. With the ability to secure financing up to $5.5 million from the SBA portion alone and additional funds from the lender, businesses can pursue significant real estate and capital investment opportunities.

Job Creation and Community Development

The SBA 504 loan program is designed to promote job creation and community development. By supporting small businesses in purchasing and expanding their facilities, the program helps stimulate local economies and foster employment opportunities. This focus on economic development makes it a socially responsible financing option.

Use of Funds

The SBA 504 loan can be used for a wide range of fixed asset purchases, including: 

  • Purchasing land or buildings.
  • Constructing new facilities or renovating existing ones.
  • Purchasing long-term machinery and equipment.

This versatility makes it an ideal choice for businesses looking to expand their operations, invest in new technologies, or improve their physical infrastructure.

Increased Borrowing Capacity

Since the SBA 504 loan involves multiple parties (a traditional lender, a CDC, and the borrower), it can sometimes allow businesses to secure larger total financing amounts than they might be able to secure through a single loan. This increased borrowing capacity can be crucial for substantial projects that require significant investment.

Preservation of Working Capital

Because the SBA 504 loan requires a lower down payment and offers long terms with fixed rates, it helps businesses preserve their working capital. This preservation is vital for maintaining liquidity, investing in business growth, and managing day-to-day operations effectively.

Purchase Land With a CEDCO SBA 504 Loan

Buying land in Colorado can be a rewarding endeavor, whether for personal use, recreation, or business development. You can make a well-informed purchase by understanding where to find land sales, assessing its worth, and exploring financing options like the SBA 504 loan program. With Colorado’s diverse landscapes and growing economy, now might be the perfect time to secure your piece of this beautiful state. Contact CEDCO by calling 303-893-8989 for your free consultation.

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