Developing Land

General Real Estate Investing
1

Hey All,

What would be the best way to go about developing land. I know where there is 200+/- acres in a desireable area where developed lots are running from 50,000 to 125,000 for 5 acres (min required in area) Any ideas how to fund a deal like this or find partners to help fund. Just juggling around the idea.

I know the people that own it fairly well and they have mentioned they want to sell it once or twice but have made no effort yet. I would like to get a solid idea before I approach them.

Any feed back will help

Thanks,

REGONZ :wink:

2

I’m assuming that you are intending the acreage for residential development. First you need to evaluate if this is really a deal or not.

  1. What is the 200 acres selling for?
  2. Is it zoned residential?
  3. Any infrastructure such as sewer, water, etc?
  4. Development costs per house?

If you determine that it is a good deal, then I would approach some local developers and wholesale the deal to them.

Regards,
Patti Porter

3

The 200 acres has no set price yet. The owners owe nothing on the property. The area it is in would be residential all other lots surrounding the area require well and septic, I believe that is why their is a five acre min.

Regonz

4

I am sort of in the same situation, here in Idaho. I have ties (not legally- not yet anyway) to some property (sum 300 acres) that has been in the family for two generations and is now just barely starting to show some life near it, meaning civilization is finally happening need ideas of how to go about developing it. I am just an observer in the developing stage of making an LLC with the other members of my family who own the pacels of land that have been passed down from generations that have passed on.
This is also a research paper that I have chosen to write on for an investment principals course that I am currently taking in college, of how to develop that land, how to finance the project, and possible ideas to put on that land.

5

A good resource for you and I might be to go talk to a civil engineer and have them outline the process. I know in my area they wont charge to simply learn the basic procedure and get a rough idea of what it costs for surveying, water, and sewer. Just a thought…

Regonz

6

I don’t know what state your in, but one of the MAJOR issues in the Western states is, Water! I am currently developing two separate parcels in Colorado which will be several 10 acre parcels with separate wells and septic. Before my county will approve anything, I have to have a “determination of water rights”, which is done through the state. This is just a beginning step. I also have to have a civil engineer determine flood plains, soil, etc, and a surveyor to survey each parcel. In addition to all this there are several different fees for schools, roads, etc., and for some people one of the sticky parts is getting consent from neighboring residents.

7

You guys need to hook up with developer and investors and banks and engineers.etc… Need to do phase 1 and 2 environmentals. etc… That is some thing I do have.

8

We have put together land deals over 10MM with hard money, but you probably need to team up with a seasoned developer and have decent credit to pursue.