Has anyone developed land?

Question

I found some acreage in Texas that I would like to develop. Does anyone have any experience doing this? I would be grateful to pick someone's brain and see if this is something I should invest in or if I should stick to my lane of BRRRing homes.

My plan would be to buy, subdivide, sell some lots to give me the funds to start building homes from the ground up.

Shannon Robnett · Answer

@Kyle Varga development is what we do and there are a few things that make it a unique animal but if I can do it so can everyone.  Couple of questions though, if I may.

1. Why Texas when you live in Utah?  Development is pretty much a hands on sport and you will need to be in the area you are developing often so commuting at the very minimum.

2.  Are you not having success at BRRR?  Why change horses?  Everyone thinks "the other guy" is making all the money but the truth is a well oiled one trick pony will make you a millionaire if you just wash, rinse and repeat!

Jason Hsiao · Answer

Depends on where it is in Texas and if you have someone local helping you or putting a team together since I noticed you're in Utah @Kyle Varga. It's not necessarily hard, again depends on where you are, it does require patience and special knowledge.

Kyle Varga · Answer

@Shannon Robnett

My long-term business plan was to get into building single families and eventually multifamily properties.  I was using flips and BRRR to fund this eventual goal. Now that this market is on fire and good deals on homes are becoming less common, I thought it might be a good time to transition.

I have managed several deals from out of state but plan to move back to Texas within a year or so. If I can get a deal like this under way, it would certainly expedite the move.

Kyle Varga · Answer

Thanks for responding Jason. All of my investments are in Texas. From my experience with other construction projects and some research I've found its Purchase, Hire an engineer and surveyor to write up a proposed subdivide that I will then have to get approved from the city/county depending on the lot. Hire and manage a contractor(s) to install utilities and roads. Get final approval from the city/county and start selling/building the lots. Am I missing anything? Are there any hidden costs that maybe someone who's never done developing wouldn't know?