Subdividing land and new construction

5 Replies

So I've recently started doing another direct mail campaign and have been getting some leads that don't make sense for a flip but have a big enough lot for it to be subdivided and built on. How do I know if the numbers would make sense for a new build? This particular deal is about a half acre and it is zoned R5 in a very nice community near the water in Anne Arundel County. The minimum lot size is 7000sqft so someone could probably squeeze in three 7000 sqft lots pretty easily. New construction in that area in similar sized lots range from 330-390K depending on the size and everything else. Is this something that would make sense? I'd love to learn what criteria builders use and not let leads like these go to waste. Any suggestions? @J Scott @Ned Carey

@Ned Carey thanks though! Btw, we missed you at the last meetup!

@Luke Texidor I got the minimum lot requirement already I just need to know what number makes sense for a builder as far as costs for lot. I think the seller will take about 200K for the whole lot which would then have to be subdivided for three lots and built on which going to cost quite a bit.