Land development - Posted by wes

Posted by ray@lcorn on April 24, 2006 at 12:19:23:

Wes,

My first question would be why the builder/developers are distressed in the first place. Often the reason is related to a weak market. That may affect the outcome of your Steps 3 &4.

Step 2, adding value, is a discipline all to itself. Subdivisions must be planned in accordance with the local zoning and development standards, along with requirements for public utilities, streets and any set-asides (park land, impact fees, etc.).

As an FYI, it’s becoming increasingly common for localities to require the developer to bond the improvements (i.e. streets, utilities, storm drainage, etc.) and/or the payment of any impact fees prior to approving a subdivision plat. Be sure to check with the local planning department for a comprehensive overview of the approval process.

ray

p.s. for a comprehensive discussion of the development process, see Howard Zuckerman’s “Real Estate Development Workbook and Manual”. It’s available on Amazon.

Land development - Posted by wes

Posted by wes on April 20, 2006 at 23:07:56:

I’m a newbie at land developing. I have a couple questions.

Our focus is to buy land from distressed developers/ builders. Then, resell it as quick as possible. I know we might have to add value to land before we sell it. But I’m not sure what the process will be.

Step 1: Find the deal
Step 2: Add value by improving the land. Step 2 is kind of confusing to me. I know what to do but I don’t know what needs to be done first.

Can I subdivide the lots on paper by getting approved through the city before I add utilities, water, and what not?

Step 3: Sell as quickly as possible
Step 4: Do it again

Thanks in advance,

Wes