How to Underwrite 20 Acres of Raw Land
Investor · Greenville, SC · Member since 2021 · 18 posts · 3 votes
Anyone in the Dallas Ft Worth area developing 15+ acres of land, how do you evaluate an opportunity? Is there anything in particular about land development that might be different in Dallas than other surrounding areas? I know utility access is a big consideration, I would think having city utilities nearby would be a plus. And zoned appropriately for what you want to do with the land.
Anyone in the Dallas Ft Worth area developing 15+ acres of land, how do you evaluate an opportunity? Is there anything in particular about land development that might be different in Dallas than other surrounding areas? I know utility access is a big consideration, I would think having city utilities nearby would be a plus. And zoned appropriately for what you want to do with the land.
@Will Parks - Do you know the zoning and overlay for the land? City zoning and planning should be able to assist you with this. See if its abstract (should be able to see this on lot and block description or survey should have it). If abstract, you'll have to get it platted, this can take 3-6 months with engineering, etc. Its raw land so most likely you'll have to do this. If you have the survey, talk to the person who did it, they'll be able to give you more insight into the land such as easements, utility access, flood zone, etc. If in a flood zone, city might want a flood study done and submitted with plans. Just depends on the project.
What are you trying to develop?
Anyone in the Dallas Ft Worth area developing 15+ acres of land, how do you evaluate an opportunity? Is there anything in particular about land development that might be different in Dallas than other surrounding areas? I know utility access is a big consideration, I would think having city utilities nearby would be a plus. And zoned appropriately for what you want to do with the land.
Ok if you do not know how to determine if its a good deal , well to put it bluntly, you should not be looking at it. Its like me asking, how do I know if this 3 br on abc main street is good? IF I do not know I should not even be looking at it .
All the best
Anyone in the Dallas Ft Worth area developing 15+ acres of land, how do you evaluate an
Probably sounds harsh, but if you are in SC and asking about evaluating a deal in Dallas, my personal thought is you should stay away from it. Development is the riskiest part of real estate. It is where plenty of very successful people loose all their money....and I mean a LOT of people. Not to say there aren't people who are great developers and make money doing it, but I would say it is not the best way to get started in real estate. 15 acres of raw land sounds like a deal for someone who has made plenty of money doing a variety of deals and now wants to go to the casino to take some of those winnings and double down.
Only you know your plan.....I think you start with what the city wants to be there. They often have a plan....talk to them. Then see if that plan fits with your vision. Then you determine all your costs and timeframe, get a budget together. Budget 2 years longer than you planned as there will be delays...budget for that too. Get your plan blessed by the city and all your vendors/trades. Raise your funding. Start your project, and hope and work hard for the best outcome, where you and your investors makes 5x your investment.
Anyone in the Dallas Ft Worth area developing 15+ acres of land, how do you evaluate an opportunity? Is there anything in particular about land development that might be different in Dallas than other surrounding areas? I know utility access is a big consideration, I would think having city utilities nearby would be a plus. And zoned appropriately for what you want to do with the land.