Subdivision Checklist
Group,
I am looking for some insight on a checklist to evaluate deals as I come by them. I have been flipping SFH for years and am looking into buying raw land and subdividing. I want to move on in my real estate career and work on larger projects.
If there are any books that are suggested, I would appreciate the referral. Any help on getting my ducks in a row before moving forward would be appreciated.
Here is the first deal that I have started to look at. Please understand that I am still not sure what all the things I have to accomplish to make this happen.
13 acres raw land
property has road frontage
can subdivide minimum of 1 1/2 acres
zoned residential
developed lots run around 200-300K in the area.
I can get this land at around 220K.
Property needs to be sold because of an estate sale pending, I am going to lock it up this week if I can understand what my due digilence involves.
CSFG
If a developed lot will sell for $200K and you are paying $220k for all 13 acres and you can get 6 lots on it this sounds, at least in terms of basic numbers, a decent deal. That being said, all the items Nancy mentioned are important and need to be investigated prior to closing/offering non-refundable earnest money. Since lots sell for $200K i assume the finished homes in the area sell for around $800-$850k?
Thanks for your input. Yes properties sell in this area for 800+ for a home on a 1.5acre lot.
Do you use RE attorneys for talking with the municipality? At what point to move forward with paying for surveys?
What are the creative financing senerios should I be looking for on these types of deals? Obviously, I am looking to set something up with as little out of pocket and favorable draws. Are there specific criteria that you stick to for financing?
CSFG
Thanks Monica,
After looking at Clark County, we agree that land is too expensive. Now we are looking at Nye County in Pahrump. Do you have any experience in this part of Nevada?