Commercial Land Development
Hey everyone!
I had a talk with a seller who has two lots adjacent to each other on a main road that is zoned for commercial. He has gone through and done the permitting with the county and apparently all ready for development. He was going to develop it for his own business but the plans have changed. He is looking for a buyer but doesn't have the time to find one. I would like to help him out find someone to buy and develop this land but not sure exactly where to start. Do I give a call to commercial brokers to see if they have any customers looking for this size land or some other strategy? Thanks!
@Zack Busch
The owner has added a lot of value to the land by making it “Shovel ready”. How much value has been added depends on a lot of things that an average Joe, like me for example, to determine. I would bring in a commercial broker with a strong background in land.
@Account Closed
Thanks for the response! That was my thought as well. I would be interested how that relationship would work. I imagine that there are two options. I get under an option contract to help the owner find a buyer and then could take it to a commercial broker then the broker gets a commission finding a buyer. Or I can connect with a broker first and talk to them about the options and connect the broker with the owner.
@Zack Busch
I misunderstood your original question, I think. I thought you were helping your friend find a buyer. It sounds like you want to flip it. I guess you would want to find out how much money your friend has into it and buy it from him at that amount. It sounds like your friend wants to sell it right away, so I don’t see how an option would help him out.
It sounds like you should buy it right away. Bring in a broker as soon as it’s under contract to determine its current residual value.
@Account Closed
Sorry yes you were right originally. I am trying to help find him a buyer for the land. It sounds like I should reach out to commercial brokers and see if they can help him sell the land to an end buyer.
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What is the improvement? Just talk to a land broker, they can guide you better in your local market.