I Need Professional Help!
Ok so here it is. I am a NEWBIE to say the least.
2 years ago I purchased 2 parcels. 13 acres total. I bought them with the intention of holding them for a few years because I knew that the city was going to expand in that direction. They have entered into the city UGA 2 months ago.
A 10 acre parcel right across the street is for sale and was approved for 51 homes.
So should I
Sell as is in the UGA?
Get the land to preliminary plat stage and then sell?
Wait a few years until I have enough money to do a project myself?
How do I go about getting the property approved by the city to be subdivided? I do not even know where to start or who to talk to.
How much does it usually cost to get a project to that stage?
Any advise will help. My real estate career only consists of 2 houses I flipped a few years ago.
Need professional help!!
Let me elaborate a little bit.
The two parcels are next to each other. Share a main property line. I purchased both for 165K. (100K for the 8 acre and 65K for the 5 acre parcel) I owe 120K. So my holding cost is very low and not a factor.
Lots in city are going for 50K. New zoning will allow 5 homes per acre.
I will have about 50K to put into the property.
Water and sewer are 2000 feet away.
I have no problem holding the property. I just want to make sure I am doing the right thing here. If I can get it to preliminary stage for 50K (that is what someone told me) and sell the projected 60 to 70 lots for 10K to 12K. Making this a 700K to 800K sale price. I can 1031 that into something else.
you might want to consult a civil engr to see if that number of lots can be subdivided.
what laws apply (CA requires special stuff if >4 lots)
environment (any endangered species)
road
grading
city fees
etc.
You should be able to find an engineering firm to prepare your subdivision; survey; road; drainage; and sewerage plans for under 40k. This is what u will need before dealing with the city planning guys.
I dont think you can get 50 or 60 out of this; unless you are talking about apts/townhouses.
Ultimately, it will be up to you to tell the engineer how u want it split/ w roads etc. Of course, that will be a very important development decision for you.
Ok so here is my plan so far.
1. I contacted the city and I am goint to fill out a Long Plat form for approval.
2. Hire a surveyer and do a rough plat of the property.
(1000 to 2000 dollars)
3. Submit the survey to the city. I was told by my real estate agent that after they get the survey it will take 3 to 6 months for them to research and figure out what studies need to be done.
What studies are usually required?
What constitutes the 40K to 50K that I hear about to get to preliminary stage?
Thanks for your help
Thanks a lot for all the comments. I am going to wait it out, especially since I found out there is a 3 year period that I must start building after the city approves the development.
I am thinking about doing the project myself. In 5 years I will be able to finance the entire project. I estimate that It will cost 600K to 700K ????
This will take the project from as is to complete. The zoning is for high density.
6000 sq foot single family
10000 sq foot duplex
13500 sq foot 4 plex
your all awsome!!
thanks for all the good advise. I will definetly keep you posted on the development.
Properties specializes in providing cash flow real estate investment properties in several emerging markets around the country. Our primary focus is on those markets that are recovering from the real estate downturn providing great opportunities for a long term buy and hold investment strategy.
I will have about 50K to put into the property.
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Is this land in Chico?
I am giving suggestion that first you find out another suitable plan and compare it with your checking, you could find out your suitable answer.
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