Waterville, ME · Member since 2015 · 269 posts · 53 votes
own outright 5 ac land, near large city (1 mile out), in a town with little zoning; can split the land every few years. Go. What would YOU do with it to make money?
(admin: I dont know if this is posted in right catagory... if not please move it to right one. )
yes that is the question what would give the highest return? too many storage in area. Tell me what would you do. Its a country setting, 1 mile out from major city- near major hospital? most saught after town in area- properties go like hotcakes. 5 acre's- what would "you" do with it?
Hi we would build five custome 2400 Sq ft homes on 1 acre lots, by building 1 at a time, assuming you have the cash or construction loan to start the first one, once you sell the first one pay off the loan(if any) use the cashed out equity to start building your next house (the same size as the first one) but now you are using less of your own money or a smaller loan amount, build and sell your second house do the same process until you can now build with out using a loan (if any) the following houses you build would be free and clear from any loans. This way your money will grow quickly. I hope made sense ")
Per s.f. and per acre, Self-Storage will yield the highest return in real estate. And the revenue is perpetual until you sell, with no seasonality (unlike the other responses listed above).
The 1st step is to conduct a basic feasibility study, and/or to purchase a market snapshot from Cushman and Wakefield for $100.
If you find that it IS conducive to developing Self-Storage, I would be interested in talking with you further about it.
You could timber harvest the trees. By selectively cutting only the largest trees, you can re-harvest every 10 years or so.
If there is sufficient road frontage, maybe even public water and sewer, a subdivision could be possible. What is the minimum lot size? Is there a market for new houses?
I like @Charlie Fitzgerald's response. Do part organic farming, and do part short-term rental units for people needing longer-term care at the hospital (assuming they are a large enough hospital)
@Annette A.You can get some wood workers in their to use the trees for crafts, furniture etc., just to clear the space you need for the other organic food operations. Ask yourself, what you want to drive by in 5 years and say "that's my legacy"...a vibrant, health focused, community gardens, natural foods, artisan cheese (and bread!), natural honey, eco-friendly feed the community operation, OR, a whole bunch of concrete and orange doors hiding crap people don't have room for in their garages....or some more houses?
I'd do a Christmas tree farm/pumpkin patch too...seasonal, but great revenue and brings people to you for sales of other products. A "you pick berries" patch too. Also have some space where people can come and plant their own vegetables in return for volunteer time on the farm.
The world needs this a lot more than more houses and storage units...
@Scott Meyers probably not as there are many storage units in the area and its has a hill of a road that probably wouldnt be a good location... and there are so many units already near by.
@David Krulac i do like the idea of harvesting... the surveyer did say there is some good lumber in there. that would be the smart thing to do first. and as for the town- there is no lot size last i knew. I have an apointment tomorrow with the code office to see what i can and can't do.
I could build new construction goes like hot cakes in this town. the school, the taxes... so yes there is deff a market for new houses.
great idea. i like that idea. then there are no ties to it- and not having land lord stress. quick- well semi quick cash to turnover and make more. movement.
@Charlie Fitzgerald you do inspire me but its not the location for it. its not road side and its all trees. but i do like your idea and am hoping to with this land bring in some cash so i can buy a homestead and do some of what you suggest. I like the open space for others in exchange for volunteer time. we will talk more later when i get to this stage. I need funds now and this land is a cash cow sitting there for years and ready to be milked, so i can create my homestead vision. Thank you so much for your ideas and inspirations.
@Annette A.You can get some wood workers in their to use the trees for crafts, furniture etc., just to clear the space you need for the other organic food operations. Ask yourself, what you want to drive by in 5 years and say "that's my legacy"...a vibrant, health focused, community gardens, natural foods, artisan cheese (and bread!), natural honey, eco-friendly feed the community operation, OR, a whole bunch of concrete and orange doors hiding crap people don't have room for in their garages....or some more houses?
I'd do a Christmas tree farm/pumpkin patch too...seasonal, but great revenue and brings people to you for sales of other products. A "you pick berries" patch too. Also have some space where people can come and plant their own vegetables in return for volunteer time on the farm.
The world needs this a lot more than more houses and storage units...
I'm always open to new revenues streams, and wondered if you have any Case Studies or White papers of profitable Christmas tree, pumpkin farms and Artisan cheese businesses?
The question is, how do you conduct a feasibility study on that to determine the highest and best use of land in a 3 mile radius to determine whether there is a need, along with the accurate pro forma #'s to Back it up?
I'm not being snarky, I just seriously want to know. I have been following the "timber trade" for awhile, which is new to me in the past several years. And with timber, just like Self-Storage, you can conduct a feasibility study to fairly accurately predict demand, and model a business based upon historical market data to derive projections for the project.
For instance, I can get a Cushman & wakefield study for $100 that gives me a fair amount of info on whether to move forward on a 5 acre tract, given the market demand and demographics in a 3 mile radius.
In addition, equilibrium in the storage sector is forecasted to occur somewhere around 2020 to 2021 - Those are stats to hang your hat on.
Where do I find a trade association or consultant to conduct a feasibility study to determine demand/profitability for bread, cheese, honey, and flower gardens?
Ok, a little sarcasm as well, but the bottom line is, if you are advising Annette (or others) to help the world, it takes a profitable engine to make a difference.
For instance, we tithe as a corporation (10% of business profits) and use that $ to build several houses per year in the Dominican Republic and Mexico. Our Self Storage Business generates Millions, and is creating a legacy by helping others with our abundance.
And when we travel on our house building missions alongside 100's of other millionaires that are also supplying the wells, and building sustainable farms, and buying sewing machines, and building free clinics.... I have yet to meet one who was in the bread, cheese, and honey business.
You create a Legacy from maximizing the opportunity in front of you for the greatest gain, so that you can provide the greatest good to those in need.
Making the 5 acre parcel "pretty" with a feel good business, might help the community, but it's a job that requires Annette to Work her A$$ off, rather than Creating a Passive income stream on the property that can help her, her entire family tree, and others for Decades.
@Scott Meyers interesting take on it. It is true tho that those with the riches are able to do more and "can choose when to work their butts off. and I'm not getting any younger so i am also thinking of my retirement years... at this point i could not sustain myself. I would barely be living. I NEED to increase my assets and build cash flow.
I had thought of storage units once... but not for that location. ITs not conducive for that location.
@Charlie Fitzgerald I will like to stay in touch about the organic farm thing as that is something i "want" to do with my time- in some form. .. but first i need to make a cash flow so that i dont have to feel stress over money and how am i going to live when i get a bit older.
Maybe after a timber harvest you could contact a small unit solar investor. If they can establish a long term power purchase agreement from a user who requires offset in the nearby city, they might be willing to establish a long term lease with you.
Same possibility for a cell tower if coverage is needed in your area.
@Brian Tome thanks for that added thought. ? cell tower maybe as it does sit up away from the road and in general is on a hilltop side. but chances are there are already a bunch of them as it next to the capital city. But it is another way for somebody to make revenue... i like the solar thing more as i am more of a green person- Maine already has HUGE windmill project going on putting in 87 plus windmills across our middle stretch up to Canada. I do like the solar idea... i dont think Maine has any of that? I will have to research for another day.
:D I am loving all this brainstorming, so many ideas
Heres a little something to consider. I'm new(er) to real estate, but I've been involved with small scale stuff like is being mentioned here most of my life. I own/ opperate a small landscaping business. It takes most of my time. And thats the big thing I want to make sure you consider. TIME. Organic farming is awesome. My brother used to work in my landscaping business, bow he is growing organic produce full time. It is extremely labor intensive. The reason it is organic is because you dont use roundup and nasty chemicals. You do things manually. Like composting leaves by turning them over in a big pile with a pitchfork every 2 days, or keepin the weeds out of a row of tomatoes by covering the ground with massive amounts of hay and manually pulling the weeds that pop up.
This is not meant to be discouraging in any way. I want to make sure that you and others know that these hobbies like organic farming, or harvesting christmas trees, or raising honey bees takes a lot of time and effort. It is totally worth it if that is what you want to spend your time on , but make sure you account for hours and hours of your time.
Yes, you could hire help to do the work, but it really has to be a pretty serious opperation to afford help. A couple hundred pounds of organic tomatoes wont cover the payroll.
My case studies are the 1000's of small operators doing it now all across the country that are making very good returns from their organic operations. Trader Joes Markets, Whole Foods Markets, Walmart Stores, advance purchase entire farm projected growth organic produce on annualized contracts, due to the high demand. Michellin Star rated restaurants do as well. Nobody said it isn't hard work. Annette did not ask for ideas for passive income, she asked, "what would you do with it to make money?" As an aside, Christmas Tree Farms and Pumpkin Growing operations, generate the 2nd,and 3rd largest returns for consumer agricultural products in the country (right behind roses growing operations - Valentine's Day) with the shortest demand cycle in the countr. Feasibility studies are wonderful things, but the guarantee of profitability from them is only guaranteed to the person/firm that sells them for whatever they charge. My free feasibility study is worth at least as much as I charged for it. Retail/wholesale organic foods operations do very well. So do storage units. It just comes down to preference.
@Annette A. THE question is WHAT IS DEMAND? Everyone coming up with ideas of what can be done with a piece of land, shows exactly why so many people lose money in development. If you invest a huge amount of money in any given niche, and there is no demand for that, you've just thrown your money away.
You didn't say if the town you owned is was where you live is what is listed on your profile, but assuming it is, here is the LAND USE from the City's site. Once you know what your land is zoned, come back here, and I'll be happy to give you some ideas on where to start, what you might do, etc. Good luck! Please be sure to @mention me if you want some help.