These real questions about buying undeveloped land are answered by a US master builder and myself after receiving them from my eBook readers,
“Residential Development Made Easy”.
Problem 1.
What are some factors to consider when purchasing undeveloped land for development?
purposes of the rezoning?
Response from 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 can sue them in a few years, so they won’t give you an opinion.
However, they will discuss the Council’s growth plans. Ask about public services such as water, sewage, roads, etc. These are very expensive and they will want growth where existing utilities have the capacity to handle the growth. This way, if you purchase raw land for rezoning, you are working within the “thinking” of the local authority.
Be prepared to hold on to the property for a long time. The first thing to check before buying is to make sure that it is not or may not be part of an endangered species.
Then make sure it has never been part of or owned by a gas station, fuel company, junkyard, or dumped tires. Also get evidence from experts. Make sure the land allows ownership
build on it.
Problem 2.
What methods does the developer use to evaluate potential parcels for development and determine the price to be paid for the land? (Again, suppose we have a basic level of
comprehension)
Response from master builder and developer:
“The land is only worth what you can do with it.”Problem 3.
What general advice would you give to developers just getting started in the market?
Response from master builder and developer:
Locate 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 eBook, “Residential Development Made Easy”. No other seasoned developer has taken the time to write a how-to book like his, that is, anywhere in the world, making it truly unique.
The more successful and profitable you are, the more successful and profitable we are.
Be honest with the master builder you choose to work with. Ask for their help.
For me, because I am licensed, bonded, and insured in all 48 contiguous states, I can help you assemble a Residential Development Team that will provide you with expertise and
support their efforts.
We can provide development financing (if you qualify), home buyer financing, insurance, help you locate land, advise you on property, create 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 you how to start. Get your feet wet.
Example: I could start by helping you build a residential development team or connect you with mine if I have one in your area. So we would place a lot in a build from 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 would find a buyer for you. You would sell the house. And we would use that house to create demand for more of our houses. You would repeat your success several times until you feel comfortable and ready to develop your own wilderness.
