Who to partner with in the Triangle area to complete a development on 93 acres

Raleigh, North Carolina
Land & New Construction
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Who to partner with in the Triangle area to complete a development on 93 acres

Rich Todd
Member since 2023 · 1 post · 0 votes

I own 93 acres with a fully stocked, private large pond/small lake in a coveted area of the Triangle in NC where you can't find this much acreage available, and I would like to know the best way to partner with a development company or other organization to create a high end, beautiful community on this site.  How do I ensure the best profits with least amount of risk and avoid all of the scamsters out there?

Thanks,

Rich

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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
2y

Looks like your first post so I will treat this as a one time deal for you. Not a REI learning moment. To much to learn.

Options:    
1. List and sale.  
2.  Auction.   
3.   Auction- with engineered development plan.   
4. Partner.   
5.  Syndication- add as equity.   

You mentioned risk and reward.  They are at two ends of the spectrum.  
1 above is the least risk, but the lowest reward.    
5 above is the highest risk and the highest reward.     

If you do any of the partnerships you have the risk of the Developer relationship, the risk of the development going bankrupt, risk of the market not being conducive to your product.  At the current interest rates and material costs if your sales take 6 years versus 2 years the interest will eat into the profits.

With 93 acres you could subdivide into two or three lots and take different approaches.  

1.  All potential lots with direct road access sell as individual lots without any development.  You will get your most profit with little cost input.  For example you sell one of these lots for $150,000.  Say the same size lot in the inside and you sell it for $250,000.   You need sewer, water, electric, fiber optics, sidewalks, fire hydrants, storm ponds?, storm sewers?,   You might make a little more profit in the $250,000 lot, but your risk, timeline, experience, developer, economy risk is far greater.  Plus you don’t get all of that profit.

2.  Then make two other areas.  High density and low density lots.  Along the pond or lake make the lots bigger if that is the look or community you are after.  Make the back lots smaller.  

3.  If you have land near intersections you might sell as commercial lots.  


Tip  People love trees, boulders, water, views, walk out basements. You can add trees, boulders and water features.

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  • Kristi KandelPro Member
    Developer · Fort Myers Beach, FL · Member since 2018 · 383 posts · 195 votes
    2y
    Quote from @Rich Todd:

    I own 93 acres with a fully stocked, private large pond/small lake in a coveted area of the Triangle in NC where you can't find this much acreage available, and I would like to know the best way to partner with a development company or other organization to create a high end, beautiful community on this site.  How do I ensure the best profits with least amount of risk and avoid all of the scamsters out there?

    Thanks,

    Rich


     Hey Rich,

    I've been in land developer the past 17 years starting in FL and then about 85% of my experience is in CA. I'm more than happy to jump on a call with you to discuss establishing your development team for the project. 

    Here is a link for key questions to ask the various dev team members who you'll hire to execute your strategy as well: https://drive.google.com/drive/folders/13Z0B7mV--YRtVN3TJhez...

    Just shoot me a DM if you'd like to connect. 

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Looks like your first post so I will treat this as a one time deal for you. Not a REI learning moment. To much to learn.

    Options:    
    1. List and sale.  
    2.  Auction.   
    3.   Auction- with engineered development plan.   
    4. Partner.   
    5.  Syndication- add as equity.   

    You mentioned risk and reward.  They are at two ends of the spectrum.  
    1 above is the least risk, but the lowest reward.    
    5 above is the highest risk and the highest reward.     

    If you do any of the partnerships you have the risk of the Developer relationship, the risk of the development going bankrupt, risk of the market not being conducive to your product.  At the current interest rates and material costs if your sales take 6 years versus 2 years the interest will eat into the profits.

    With 93 acres you could subdivide into two or three lots and take different approaches.  

    1.  All potential lots with direct road access sell as individual lots without any development.  You will get your most profit with little cost input.  For example you sell one of these lots for $150,000.  Say the same size lot in the inside and you sell it for $250,000.   You need sewer, water, electric, fiber optics, sidewalks, fire hydrants, storm ponds?, storm sewers?,   You might make a little more profit in the $250,000 lot, but your risk, timeline, experience, developer, economy risk is far greater.  Plus you don’t get all of that profit.

    2.  Then make two other areas.  High density and low density lots.  Along the pond or lake make the lots bigger if that is the look or community you are after.  Make the back lots smaller.  

    3.  If you have land near intersections you might sell as commercial lots.  


    Tip  People love trees, boulders, water, views, walk out basements. You can add trees, boulders and water features.

    2Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Whoever you talk with, tell them your personal financial needs, timeline, desires.  

    There are many ways to structure the above to adjust cash timing.  Take a loan out , If you do a partnership but want some money now, have them pay you some up front.  Don’t put the whole value into the partnership.  

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  • Cory J ThorntonBusiness Member
    Real Estate Agent · Raleigh, NC · Member since 2021 · 240 posts · 281 votes
    2y

    @Rich Todd - It sounds like you have a great property! 

    As you have probably gathered from the other posts, development can be both risky and profitable. 

    You have the land, so you have the leverage. 

    There are plenty of trustworthy developers in the area with a track record of success. 

    I am happy to shoot you a few names that I would trust. I haven't personally messed with development, and I have not personally worked with any of the folks I would recommend, but I do know them personally and trust that they would be fair, honest, and work to help you understand your options. 

    Give me a shout if there is anything I can do to help. One way or the other, it sounds like you have a property with fantastic potential! 

    0Reply
  • Jordan Ray
    Developer · Palm City, FL · Member since 2018 · 326 posts · 99 votes
    2y
    Quote from @Rich Todd:

    I own 93 acres with a fully stocked, private large pond/small lake in a coveted area of the Triangle in NC where you can't find this much acreage available, and I would like to know the best way to partner with a development company or other organization to create a high end, beautiful community on this site.  How do I ensure the best profits with least amount of risk and avoid all of the scamsters out there?

    Thanks,

    Rich

    @Rich Todd Sounds like you have a solid property there! I am in land development in Florida happy to be a resource for you. 

    0Reply
  • Michael Shea
    Lender · Glastonbury, CT · Member since 2023 · 7 posts · 2 votes
    2y

    Would love to stay in the loop.  When you have approved lots LMK - I can help with construction financing so you dont need to build on spec

    0Reply
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