What can I do with raw land?

Question

I want to hear suggestions in urban & rural areas and also besides building a single home family, multi-family or any other type of properties.

I'm looking for more options, private parking slots, use it for agriculture, laundry services, sell it or a business in general....

John Hamilton · Answer

@David Engle I know your last post was in Jan.

Have you done anything with the land you were talking about?

RV, Semi rig, boat storage is easily doable and doesn't really muck up the land, unless you were thinking of turning agri-land in the future. Some fencing, good security system with cameras and link to local law enforcement, and gravel to mark your spaces. Maybe some covered parking structures.

Also, rent out to farmers, depending on the size.

If in weed friendly state, maybe pot growers?

Karen Margrave · Answer

@Jorge C.  Without knowing more information it's impossible to tell what the "highest and best use" of a parcel is. You have to take many factors into consideration. What is the local economy? Is it a farm area or tourist area, manufacturing, retail, etc.?  What is the land itself like? What is the availability of utilities?  What is the process of developing land in the area? There are many ways property can be used, but if there is no demand for the use it has no value.

@Kathy Fettke I am very familiar with that land, as it's had many uses proposed for it over the years, most of them residential. It was exciting to read about the wine village. Did you buy all the acreage? How many acres will the wine village take up? How many wineries are commited to space? When is construction slated to begin? I'm sure you're hoping it rains, as the lake being full would make marketing much easier.

Account Closed · Answer

Anyone else?

Account Closed · Answer

@Dennis Rodriguez  Gracias for the tip. If I have a doubt, I will message you.

Dennis Rodriguez · Answer

@Jorge C. I'm a civil engineer with license in PR and I work a lot with land developers pulling permits and such. The most basic thing you can do is dividing it and sell the individual lots to people who want to build their own houses. From there it gets more and more complicated depending if you need to provide a road to access some lots or the government may ask you to provide utilities in order to get a permit. It all depends on how much land you have available and what areas (urban vs rural, etc...). PM me if you have more specific questions.

Account Closed · Answer

@Kathy Fettke  Awesome, thank for the info. BTW my family lives in California between San Francisco, Modesto & Livermore (Lots of wine plantations here), some of them are interested to invest in real estate. I'm trying to do something with some raw lands in Puerto Rico and I want to rent a land in Dominican Republic to export livestock to Asia. I'm gathering information in this area of Real Estate.

Kathy Fettke · Answer

Hi Jorge,

We are buying land, entitling it and selling to builders. There is huge upside to it, but requires tremendous experience and due diligence.  I've been in the real estate investing biz for 17 years, but in land development for only 3 so I partner with developers who have 30+ years experience because entitlement is tricky.

Our latest land deal is interesting. We got entitlements on a property off Hwy 5 near Lake Shasta in Northern California and are building a "Wine Village." It's  a way to showcase local wineries that are hidden in the hills off the beaten track. They can lease a space at our Wine Village and get exposure to thousands of tourist which helps them build their brand. As a result, they are willing to pay much higher leases than other commercial buildings would get. This is what our development team found to be the highest and best use of the land. Once stabilized and cash flowing, we will sell to an institutional fund looking for 6% caprates - it will have a nice upside at that point, but in the meantime we'll cash flow a bit til that happens.

I do like your idea of using raw land for agriculture. It seems to me that farmland is going to be in great demand in years to come, but I"m not an expert on farming so I won't be of help in that regard. Just a gut feel.