Trailer Park Is Going Away.....
I stumble across something huge by my standards. I called a FSBO sign on a vacant interior lot for sale. This lot in inside a beautiful lakeside subdivision (SD). The SD takes up the south half of the peninsula of land that sticks a half a mile out into the lake. On the north side is a trailer park(TP) and it has been there for 30 years. The lots are the buffer between the SD and the TP on the top of the hill. The view from these lots is north, looking straight up the 18,000 acre lake with mountians in the background of course you have to look over the TP.
While talking to the owner of these lots I found out he also owned the TP. When he told me what his plans were for the TP I agreed to buy all four of his lots. Then I asked him if I could give his family a proposal on how best to develop his 17 acre TP with one mile of shore line and GREAT views. He said yes. They planned to subdivide the land into 17 lots and sell them for 300-400K. I told him I could show him a better way and it would increase his yield while maintaining total control of the development and buildout.
Here is where I need help.
I beleive this land could be develop into a retirement village. Place 30 to 35 high-end lakeside cottages in the village. The development would be an association with common area everywhere except your house????
The land is 200 deep from private road to shoreline and runs for almost a mile with a couple of point lots. The land is unrestricted and has no zoning in the county.
The market for this area is 1) retirement, 2) vacation homes. This is a small county (62K) and most locals can't afford lake homes.
Has anyone done something like this?
I myself am a magazine publisher and have been publishing trucking mags for 6 yrs. While RE investing is new to me, my family owns land in Wash DC area for 50 yrs. However, my father is dead and so are most of his brothers. My father and his family were smart enough to buy land to provide for the future. Now I want to do the same thing for my young kids.
I need help. I have read more books(RE Dev.) in the last 2 months than I have read in ten years.
Thoughts?
Francis X. 
Hmmm...
Are you talking on Lake Lanier in Forsyth or Hall County??? Where is this land at??
Are you sure there are no zoning ordinances?? I find that very suspect being in the metro area. Have you adequately looked into the zoning issue?? Is there adequate water and sewer available? There are a lot of issues to a development of this nature besides how to handle the hoa. I build and develop in north atlanta.
17 1 acre lots for 300-400K on a lake seems like a steal to me. That is only 25K a lot. I'd grab them in a heart beat and partner with a local builder. I'm not sure where Cummings, GA is but I'm sure it is close enough to a major metro area to market 2nd homes in. How far are you from Atlanta? I know people in Atlanta buying second homes in the mountains of NC without thinking twice.
17 one acre lots on a lake for 300-400K...what am I missing? Hmmm, have you checked how much land you need for well and septic? Or is it on municipal water and sewer. That may be a catch.
For a start I'd get the land under option. Give the owner a couple hundred dollars for an option so that you can do more research.
Good luck,
Q
RunningQ, that would be $300-$400K per lot, not for the entire package.
woodsong, you're right it is 5 million for all the land. As for the zoning I was as shocked as you. Everything is done with deed restriction and this is 1946 unrestricted land.
There is water and gas, remember there is a beautiful NEW subd adjacent to this land which is 80% built out.
As for sewer, no go. All septic and I found out I need a 3 zone community system to handle the 35 units.
What I am looking for here is some reassurances for PROVEN developers that my numbers add up and it will work.
So here are the numbers.
A TOTAL of 5 million for the land over 3-4 yr buildout.
1 million for 700' private road, stone entrance, septic, clubhouse, marina, landscaping, fees, legal
9 million for 35 high-end 2600sqft 2 level cottages (100 per sqft)
20 million in total revenue at 550-700 per unit. Every unit will be on the waters edge with a great view. I figured <40' wide units with 20' between.
Marina and common area deed to assoc. annual fee for docks to generate rev for assoc up keep.
Why 550K?
They are building some CHEAP 2800sqft townhomes on the lake with a bad view and selling them for 400k. They broke ground in Sept 2003 and have built 30 of the planned 90 units and have closed on 12 so far. They are selling fast for this sleepy area.
There are also 18 high-end attached units overlooking a marina, not the best view that sold for 623K, soldout in 2 yr.
Ours will be detached, much closer to the hospital and the town.
Does it add up, what do you think?
Hmm...I am still not sure which lake you are on in GA but I do not think it could be lanier due to the stuff regarding zoning. Maybe Hartwell or Chatuge??
At any rate, your numbers are too vague to really comment on with any possible accuracy. Put forth your cost break down for the "road, marina, docks, etc." There are a lot of costs in that catagory and it all depends on what you do for amenities and level of finish. Give more details and it will be possible to comment. Have you done a level 3 soil survey? Have you talked to TVA or Corps of Engineers regarding dock permits? They may not be allowing new marinas.
Quote:
On 2004-01-29 10:59, francisx61 wrote:
woodsong, you're right it is 5 million for all the land. As for the zoning I was as shocked as you. Everything is done with deed restriction and this is 1946 unrestricted land.
There is water and gas, remember there is a beautiful NEW subd adjacent to this land which is 80% built out.
As for sewer, no go. All septic and I found out I need a 3 zone community system to handle the 35 units.
What I am looking for here is some reassurances for PROVEN developers that my numbers add up and it will work.
So here are the numbers.
A TOTAL of 5 million for the land over 3-4 yr buildout.
1 million for 700' private road, stone entrance, septic, clubhouse, marina, landscaping, fees, legal
9 million for 35 high-end 2600sqft 2 level cottages (100 per sqft)
20 million in total revenue at 550-700 per unit. Every unit will be on the waters edge with a great view. I figured <40' wide units with 20' between.
Marina and common area deed to assoc. annual fee for docks to generate rev for assoc up keep.
Why 550K?
They are building some CHEAP 2800sqft townhomes on the lake with a bad view and selling them for 400k. They broke ground in Sept 2003 and have built 30 of the planned 90 units and have closed on 12 so far. They are selling fast for this sleepy area.
There are also 18 high-end attached units overlooking a marina, not the best view that sold for 623K, soldout in 2 yr.
Ours will be detached, much closer to the hospital and the town.
Does it add up, what do you think?
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