Supply and demand

Real Estate Investing and the “Invisible Hand of the Market”

by Michael Zuber | September 26, 2011

As an Economics major from the greatest school in the Silicon Valley, Santa Clara University (Go Broncos), I was always struck by the simplicity of the “Invisible Hand of The Market” concept, which was first penned by Adam Smith in The Theory of Moral Sentiments. I found the concept to be very logical and it [...]

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Land & Farm Investing

Residential Land Development – Part 2: Determining Economic Feasibility

by Craig Grella | October 16, 2009

This is Part 2 in the Residential Land Development series showing you how to find, price, and develop land for residential single family property.

If you’ve followed Residential Land Development Part 1 you’ve put together your development team, done a little research into the type of property you want to build and the market you will farm for potential land purchases. You’ve determined the highest and best use, researched zoning and other legal matters, and now need to determine the economic feasibility of the project. We do this by estimating the overall costs of the project. The results of your down and dirty, quick economic feasibility analysis will determine whether you move forward with your project, or whether you dump it and move on to the next piece of land. Here’s what you’ll do:

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Land & Farm Investing

Residential Land Development – Part 1

by Craig Grella | October 9, 2009

Last week I wrote an article describing how to price and develop offers on land purchases. While that information is an important part of the overall development process, it is only a small fraction of the work that needs to go into developing land for residential use. As such, I’d like to explore the residential land development process in a more thorough manner, which will include this article, and several to follow.

With that said, this article will focus on the process of land development, risks and rewards, and a few things you’ll need to get started in the business of Residential Land Development.

Land development is the process of preparing raw land for the construction of improvements.

It can include:

Demolition of existing improvements
Clearing and Grading
Rezoning if required
Installing utilities, sewers, streets, and sidewalks
Constructing Improvements like driveways, foundations, and building pads

Although developed land creates no more income than raw land, it is nevertheless brings land one step closer to its ultimate use; a home, apartments, office buildings, hotels, etc.

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