Land Developers/Commercial Loan Brokers - 100 acre potential ? - Posted by Brian (IN)
Posted by Brian (IN) on April 21, 1999 at 17:19:02:
I need adivse on the following situation. I have been investing in single families for a couple of years and have been in the commercial construction business for about 8 years. I probably know enough about land development to be dangerous.
F.S.B.O - 110 acres directly adjacent to a very nice golf course/country club. Just went up for sale this week. Owned by one family for several generations. Currently 30% farmland, 70% heavily wooded. Zoned for up to units per acre. Asking price in $15,000 per acre which is market value or a little lower. Comparable finished subdivisions of custom built homes have lots selling for $30K to $40k for 1/3 to 1/2 acre lots. From looking at land and topo map I am guessing I can put 150 lots on this piece of property at an average of $35K per lot. All public utilites are currently available at one corner of the property. This property is located in Indiana.
I need to know for budget purposes:
What is average development cost per acre for streets, sidewalks, water, sewer, electric, gas, etc.?
What are typical marketing, engineering, legal costs?
What will commercial lenders look for to finance this type of project if my end use is to sell to builders or property owners. I do not want to build the houses unless it is with a joint venture with a builder.
Any suggestions on best way to tie up property with minimum risk to me.
Any creative sale methods to offer seller that will minimize the sellers taxes.