Resort Development
i have an option on 400 acres of land. i am planning to construct a 60 acre lake and sell off lakefront property. my agent states that each lakefront lot could sell for 50k. land prices would obviously get lesser as you buy farther from the lake.
this is the first BIG project i have ever taken on. i am not sure how FAR to go with this.
i was thinking i could even partner up with a builder and build the homes that I sell to clients. there are no limits. just need some direction.
all help is appreciated
Do due diligence relating to development suitability (existing physical features and constraints like wetlands, environmental, topo, survey) and yield. Check current zoning, availability of utilities, and the value of new construction in the area. I would also have a land planner or engineer do a "by-right" conceptual plan laying out the property so you can get an idea of how many lots and the configuration. I'd also want more info about potential sale value of the individual lots. Get yourself an attorney experienced in representing developers.
Depending on the location the approvals Nancy is talking about could be worth more than the actual building phase of the project. If you can get the subdivision done, deal with all the sewer and water issues and government approvals you can quite likely sell your 400 acres for a very substantial profit without ever moving the first shovel of dirt. In fact you are likely to make more money than the developer who comes behind you and does all the actual construction.
The reason for that is that the subdivision part is where the risks and headaches are. Building and selling houses is, by comparison, a cake walk.
The only probelm I see with that is most people prefer CBS if it is going to be new construction. It is easier to sell these already built then on a piece of paper. I have know of a few people doing this and only one seems to be doing good with it in my area anyways.
CBS? Do you mean Concrete Block and Stucco? That is not preferred in my area. its EFIS here if they want stucco.
Hmmm, Im kinda of workin on the same situation here in Charlotte, NC. I am currently looking for that Builder to work with and have had not much luck (in 2 weeks of looking) but I have came across a few people who have said that this is a sounds idea. Let me know how your doing and Ill do the same. :-D
They say to look for an older experienced guy who does not want the daily grind anymore but has alot of experience to offer an owner builder. Seems if they were any good when they were young. they'd be on a boat in the islands, huh?
Maybe a grandfather type who likes the "teacher" role and not in it for excessive money.