NEWBIE- Subdivison Developement

NEWBIE- Subdivison Developement

Real Estate Agent · Woodbridge, VA · Member since 2013 · 52 posts · 7 votes

Hi all,

I need help figuring out this process from beginning to end. My mother just inherited a small piece of land. It's 4 - 4.6 acres located right outside of Washington, D.C area. The location of it isn't as important as the process we are about to embark upon.

She was considering selling it to someone else but luckily she spoke to me about the land and I suggested that she be patient and we try to see if we can work with a builder to perhaps create our first ever residential subdivision. The land is already zoned residential. But I have no experience developing a residential subdivision. I know this is a long haul process and I am not afraid of this opportunity. Here are a few questions I had....Please feel free to add more commentary if there are questions I did not ask that I need to know.

So out plan is to work with a well known builder who can come in a help with development.

How do I reach out to a Toll Brothers, M/I Homes D.R Horton, Beazer etc? Will they consider working with us and what are a few of the requirements they will need?

In a top level organization such as the ones listed, for something like this, who would be the point of contact I would need to reach out to?

What are the steps involved in developing a residential subdivision?

Will there be any upfront cost for us, since we own the land outright and we want to work with a builder to to develop the subdivision?

I love to read.......What books, articles, or websites do you recommend?

What steps have I overlooked?

Again I am willing to work. I know this is not something that can happen overnight but I believe in my capabilities I just need a little guidance.

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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
13y

Sorry I really can't answer many of your questions. I will tell you why I can't answer them. Land is complicated. There is not as much competition in land becuase not many people understand it. Therefore it can be very profitable if you do take the time to learn.

I expect none of the major builders will work with you. They will buy from you but don't expect them to partner with you or mentor you in what you need to do.

Zoned "residential" is meaningless. How exactly is it zoned? How it is zoned determines how many homes can be build there. Different zoning has a density factor and this determines how many can be built. Can the zoning be changed? You can add value by changing to a more valuable zoning.

Has it been subdivided and platted? Has sewer and utilities be run? If you do these things you make the land more valuable by bringing it to a ready to build condition.

Land comes with a lot of environmental conditions. These can greatly restrict what you can do with land. Is there a stream on you property? Protected wetlands or woodlands? What is the shape of the property? A property can be zoned for 5 houses per acre but if environmental issues limit that to 3 the value is obviously less.

I know I have asked more question than I have answered. I would suggest you talk to builders large and small. Hopefully you will find someone who can send you in the right direction. Good luck - Ned

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  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    13y

    Well... there you go, someone from your area, that can actually give you name of people! Here in California what we do probably is far removed from what is required in Maryland. Even northern California and southern California are similar on some stuff, and like another world on others.

    Southern California has earthquakes, and they worry about soil slippage and composition, etc., northern California in some parts has snow loads, wetlands, and in rural areas septic tanks!

  • Real Estate Agent · Woodbridge, VA · Member since 2013 · 52 posts · 7 votes
    13y

    I do plan on keeping everyone updated ...Thank you!

  • Investor · San Jose, CA · Member since 2011 · 355 posts · 90 votes
    13y

    Sam Eligwe, something else you might want to consider is political vision. Maybe you could speak with some folks at the city and see what their plan is in the direction of your land. That may have a large effect on your timing. You may also find that instead of 12 houses you can end up with 100 loft-style condos, retail, a park, and whatever else. Maybe "economic redevelopment" loans at subsidized rates. Could be a HUGE difference in the final outcome for your pocket. Or not. But you don't know unless you do some research in that direction.

    Michael

  • Real Estate Agent · Woodbridge, VA · Member since 2013 · 52 posts · 7 votes
    13y

    Excellent idea Michael D. I have a friend of mind who work for thec ocunty in Urban PLanning. I have been speaking with him reviewing and going over master plans. I will defintely consider all options carefully before moving forward

  • Investor · San Jose, CA · Member since 2011 · 355 posts · 90 votes
    13y

    Eligwe Tower!

    I'll take the penthouse, please.

  • Real Estate Agent · Woodbridge, VA · Member since 2013 · 52 posts · 7 votes
    13y

    Michael D. hahaha

  • Flipper/Rehabber · Bryan, TX · Member since 2014 · 258 posts · 170 votes
    12y

    @Sam Eligwe So what ever happened with this deal?

  • Grayslake, IL · Member since 2016 · 8 posts · 1 vote
    8y

    Any updates on this development?

  • Rental Property Investor · Charleston, SC · Member since 2018 · 46 posts · 12 votes
    6y

    "I love to read.......What books, articles, or websites do you recommend?" This was my favorite part of the original question. What resources should I seek out?

    @Karen Margrave Thank you for your articles on this subject!

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