questions about subdividing

hey all.

I was hoping someone could give me some feedback…

I just aquired a considerable amount of land in 2 different areas from familly. I was thinking about subdividing it. Now I’m in the process of forming a corp.

Now there’s a lot of tree removal to be done. I was hoping to make money off of it to put in roads and other start up stuff.

Does anyone know about getting loans for subdivisions?

What about plotting out the lots, can I do it myself to save money by using some CAD program and save money? I’m pretty computer savy.

My brother is a surveyer so that should help cut costs.

Oh if anyone knows investors that would want to partner on this project I’d be interested in talking about it. One of the areas is in a real nice spot with ocean views valued at over 3 mill. Same area that John Travolta, Kirsti Alley, Norman Rockwell, Stephen King all have homes.

I’m 22 and have very little experiance with this stuff. I would really appreciate any feedback you guys could give me on this.



I’m in a similar deal myself. I am using a local engineering company that will take me through the entire process from inital renderings, required public meeting, application and hearings,etc…

In my part of the country, the counties have a very specific and somewhat tedious process to get the subdivision approved. I tried to do it on my own with my realtors help, and it took over a year on a previous deal.

As far as loans, I’m working with a local bank that likes to do loans for subdivisions. You might have to shop around to find one that wants to do one. Private money is another option, but its generally more expensive.

In order to get a loan, you’ll want at the minimum a cost breakdown: dont forget about engineering costs, application fees, loan costs, interest reserves, and finally any contracting costs for improvements.

You’ll also have to fill out a personal financial statement, loan request and a summary of why you beleive this venture will be profitable and how much you expect to make on the deal. Be sure your lender will do a “partial release” when you start selling off lots. this way you wont have to pay off the entire balance when you sell the first lot.

Good luck with you project.

PS, If any of you are working in SW Idaho, I highly recommend Landmark Engineering in Nampa.

When you ask for a loan for a “subdivision”, do you mean just subdividing lots and doing land development? It’s rare to find a bank who will give you a loan to develop land.

My investors get land loans or do construction financing. Private investors will typically finance a development, whether it’s building or just subdividing.

it can be a pain in some areas of the country to subdivide land.

Some engineering companies will assist with everything from start to finish on subdividing and approvals.

You can always offer to put in the property and JV with an experience developer.

I would talk to local banks first about development loans