Can you tell us where this is located? I’d be curious to see if the area isn’t actually zoned.
And as far as this … “we can put one hundred homes on the farm and we dont have to do any road or other improvments” … I think that’s thinking a bit too quickly. A hundred homes is a lot of homes. Even if the road improvements are not regulated by law, it presents logistical access issues. As well, unless they are entirely off the grid, you should consider whatever power or water issues that might come up (regulated by law or not). Wells and septic systems might be plausible, but are these all going to be solar powered? What about gas for heating?
Can you talk to someone with experience in larger developments that can give you some advice?
Hello and thank you for looking at my post and for any Ideas you might be able to provide, first let me say that I am a director of a non profit group that helps poor families get off there butts and become homeowners and teach them how to be financially sound and contributing members of society. We help woman with children and homeless families go from the street to school, to homeownership.
Now with that said we are trying to purchase a farm in missouri in order to develop it into a place where families can come and help build there own homes from the ground up.
Our problem is the owner of the farm wants a downpayment of $250,000 of an asking price of $780,000,they will hold the remainder of the balance at 6% for use which we can afford, now we dont have $250,000 dollars yet.
We thought about building a few homes and selling them to people for a profit and have two of the homes already pre sold if we can get our hands on the property.
Our profit according to our builders should be $50-$100k per house built but it does us no good yet as we still need to obtain the land in the first place.
We are asking anyone who reads this post for creative ideas on how we can raise this money to purchase this farm.
It’s not a short term idea, because it takes time, but as a non profit, you are elgible for Gov’t grants, look into the state funding for MO, and go with the FED GOV too. There are funds available for non profits too do what you do.
Posted by michaela-FL on May 24, 2006 at 14:10:02:
Nick,
maybe I’m misreading something, but I’m not sure, that you’ve thought everything through.
Are you saying, that you are planning to build multiple houses on this land and then sell them? If so, have you considered the holding cost and time it takes to subdivide the land? What about access? Streets, water, sewer, electric ? At this point the farm may be set up for 1 dwelling. There may be a whole lot more involved than just buying the land and building a bunch of houses on it.
Yes we plan on building muliple houses on the land and figured in the costs of all the above etc. We can afford the monthly payments its the initial downpayment that we do not have.
Any creative ways to come up with $250,000? We thought about pre selling the houses and getting deposits then using the deposits to pay for the downpayment of the land.
Or finding private investors who would loan so much per house and be repaid with deposits and or when the houses are built have the owners of the houses refinance them and pay the investors off hmm?
There are alot more costs here than the downpayment and the monthly payments not to mention the timetable.
To develope farm land into building lots that can be sold off indivually. It takes time and money, that it sounds like you don’t have. Plans, sub-dividing costs, zoning, surveys, streets, storm water sewer, sanitary sewer, water, electric, gas, are just a few. The other thing I see is the seller is carring the paper, will he release the lein so you can sell off an indivual lot.
I would find out all the costs and county regulations before I started this adventure. You might try an option to hold the farm while work all this out.
Hi there are no zoning or building codes in this area that is why we want the farm, the only cost to us is to subdivide it as we have new people buy a lot. We will include all other associated cost to buyers of the houses, we only want to sell off the road frontage and keep the rest of the farm for developing slowly.
Again we can put one hundred homes on the farm and we dont have to do any road or other improvments so how about some creative ideas we already looked into what needs to be done as far as splitting it up and will charge these fees to people who buy a home from us.