Large Land Subdivide

[Clayton Hinspeter]

We are soon to embark on our first land subdivide deal here in GA in between Greensboro & Augusta. We like to call these 'country subdivisions' as we are not looking to do a full horizontal development with utilities. They're also in a rural area. I was wondering if anyone can provide insight on a scenario like ours. Either way we would look to seller finance the back end & sell the notes. There's 2 different options for us, both near 70 acres. I'll break them down:

Property A- I can pick up at 3500 an acre. The property is a beautifully proportioned rectangle with a broad sided road frontage with power ready to go. From talking with local realtors, I should be able to divide it into 8, well proportioned tracts, each with road frontage and sell at a minimum of 6500 an acre. The math is pretty simple on that one. 

Property B- I can get a cheaper parcel right at 2800 an acre that's also essentially a rectangle BUT would require us to put in at least a dirt road as the road frontage  is on the narrowest property line. I could always chop it into narrow, long lots but from local comps that wouldn't increase value much. If at all.  I have access to equipment and the ability to grade the road myself. The interesting piece to this deal as it backs up to an interstate. I should have an answer from the county soon on whether I could do a billboard (or 2) on the back of the property, whether through easement or deed. Billboards are new animal to us & their potential is a gray area to me. This one would also be cut into 8 residential tracts but those would likely sell at only 5k an acre. 

If you've made it this far into the small book I've typed here, thanks for sticking with me. Any tips on dealing with local governments to get this sort of thing done is much appreciated! Cheers!

[Henry Clark]

Use the lookup function on my name.  Journeys End and Silver Springs subdivisions.  Does one have better internet or phone reception?  Better access to highway? Is one on the side of a small town headed towards a larger metro area, pick the one on the side of town headed to a metro area.  Pick the Nastier of the two properties.  Trees, ditches, low spots or valleys for ponds, etc.  Better for housing.  Is there a place to put some ponds?  People love trees, boulders, water, walk out basements, and views.  Look around and see cost to move in 6 to 10 foot white pines.  Don't underestimate the price you can sale for.  We paid $9,000 and acre and will sell 2 acre lots for $50,000 per acre.  8 acres for $200,000.  Are you within 20 miles of a major metro?  Try and find a 5 acre or 8 acre lot.  How easy and what price?  Always better to have two road accesses versus 1 to your property, if you can choose.  Ask your city or county about Shared driveway access or a Private shared road.  If you haven't ask your city or county about road entrances.  Distance between entrances, sight line distances down the road, culvert requirements.  We just installed a large culvert for $20,000; they can add up.