These real questions about buying undeveloped land are answered by a US master builder and myself after receiving them from my e-book readers.
“Simplified residential development”.
Question 1.
What are some factors to consider when purchasing undeveloped land for the
purposes of the rezoning?
Response from the master builder and developer:
Study your city plan and see where the council planners want the direction of physical growth to take place. Go and talk to the planners, don’t ask their opinion, you could sue them in a few years so they don’t give you an opinion.
However, they will talk about the City Council’s growth plans. Ask about utilities like water, sewer, roads, etc. These are very expensive and you will want growth to occur where existing utilities have the capacity to handle the growth. In this way, if you acquire raw land for rezoning, you are working within the “thinking” of the local authority.
Be prepared to keep the property for a long time. The first thing to check before buying is to make sure it is not part or could be part of an endangered species.
Next, make sure it was never part or property of a gas station, fuel company, salvage yard, or tire dump. Also take expert tests. Make sure the land allows ownership.
to be built on it.
Question 2.
What methods does the builder use to evaluate potential development plots and determine the price to pay for the land? (Again, suppose we have a basic level of
understanding)
Response from the master builder and developer:
“The land is only worth what you can do with it.”Question 3.
What general advice would you give to developers who are just starting to get their feet wet in the market?
Response from the master builder and developer:
Find a master builder to work with. Master builders like me have a vested interest in ensuring your profitability.
We can answer any questions you have about what to build and how to determine profitability. We enjoy advising and growing our developers.
I also recommend new developers to purchase and study Colm’s e-book, “Residential Development Made Easy.” No other seasoned developer has taken the time to write an instruction book like yours, that is, anywhere in the world, so it is truly unique.
The more successful and profitable you are, the more successful and profitable we will be.
Be honest with the Master Builder you choose to work with. Ask for their help.
In my case, because I am licensed, warranted and insured in the 48 continental states, I can help you put together a Residential Development Team that will provide you with their expertise and
support their efforts.
We can provide you with development financing (if you qualify), home buyer financing, insurance, help you locate land, advise on property, create a demand for your homes, etc.
We work with developers with various levels of experience and who have different levels of active participation in decision-making. A master builder can guide you. Show how to get started. Get your feet wet.
Example: I could start by helping you create a residential development team or connect with mine if I have one in your area. Then we would place a lot in a development of another developer.
We will then help you conduct basic market research in this controlled environment. How to write a proposal for the builder (us) to work with you.
Then the real estate agent will find a buyer for you. I would sell the house. And we would use that house to create a demand for more of our houses. You would repeat your success a few times until you feel comfortable and ready to develop your own raw land.
