Land Feasibility
How do I determine the Feasibility for a new mobile home park or maybe an outdoor flea market?
How do I determine the Feasibility for a new mobile home park or maybe an outdoor flea market?
You have two choices.
I. Hire an experienced commerical appraiser or marketing reserach firm to do a feasibility study. I just did this for a thirty acre parcel and this cost $10,000. It was worth it. The banks gace it weight in the loan package.
2. You can do this yourself. When you are done your knowledge base will be high but the banks will not give it much credence unless it is very well substantiated. Start by talking to a CCIM in your area. He can give you access to all sorts of demographic info for free and he iwll have a good idea who does studies in your area.
Also look at the demand and pricing for potential competitors in your area.
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Thanks for the reply. My " gut " feeling is that an outdoor flea market would work on this property-- 20 acres appx 1.5 mi from " downtown" on main highway in rural tennessee county with 27000 population. $17500 per acre asking price. I could swing the land price if I knew how to evaluate the feasibility. No zoning in the county. Would appreciate any directions on how, or where to look. Thanks.
Go to www.CCIM.com and look for a certified commerical investment advisor rated broker in your area. He can get you started.
It actually sounds like more of a marketing study, but I think I would still talk to an appraiser. You can pick his brain for free .
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