New construction build

[Abraham Garza]

Good morning bigger pockets team so I have currently ran into a problem. I recently just bought my first lot to build a new construction home. Everything went smoothly and just closed a few days ago. So I was making calls to get a temporary culvert permit and main water tap and sewer tap, by talking with the city I just figured out they have all taps on hold because the city currently does not have enough water capacity, the city is working on this with a neighboring city to try to bring more water in and I was told that would probably take up to a year or a year and a half to get that settled. So now I have $60,000 invested which was part of my budget and have to wait a year and a half to start building also city does not allow water wells. Has anybody ever ran into this problem and if so what do you recommend?

[Matthew Bernal]

First off — congrats on your first land acquisition. I know this feels like a gut punch right now, but you’re not out of the game — you're just in a holding pattern that needs a strategic pivot.

I’ve worked with dozens of ground-up builders and land investors across Texas and the Southwest, and unfortunately, utility capacity limitations are becoming more common — especially in high-growth areas where cities are trying to catch up with infrastructure demands.

🚧 Here’s What You’re Dealing With:

• Moratorium or Tap Hold: Your city has essentially put a temporary freeze on new utility connections (water/sewer), often due to:

  • Treatment facility limits

  • Infrastructure funding delays

  • Regional water agreements in flux

The good news: These are usually temporary and politically pressured to resolve, especially when development demand is high.

🧠 Now… What Are Your Options?

🔁 1. Pause + Hold Strategy (Minimal Spend)

• Secure the land by ensuring taxes are current and title is clear.

• Apply for any other permits (grading, erosion, site layout) that don’t require water service — this keeps you moving forward.

• Design the home and submit architectural plans (if the city allows), so once taps are available, you're shovel-ready.

• Monitor city council agendas and planning board minutes — developers often get early access to updates through these channels.

• File a Right of Way Permit or work with a civil engineer to get partial approvals (culverts, drive cuts, sidewalk plans).

🧩 Why this helps: You control the dirt, build goodwill with the city, and shorten your timeline later — without sinking more budget now.

💰 2. Monetize the Land While You Wait

• Short-Term Lease: Can you lease it to a neighbor for temporary parking, storage, or staging?

• Yard Rental: Some small contractors pay to park trucks/trailers on fenced lots.

• Land Partnership: Pitch a nearby builder to co-develop a utility petition or infrastructure agreement. They may already be fighting the same battle and have more leverage.

📉 These moves won’t create massive cash flow, but they soften the burn and can offset property taxes or holding costs.

🏗️ 3. Alternative Build Strategy (if zoning allows)

• If you’re on a lot large enough to support dry shell structures, you may be able to:

  • Build a storage barn or detached garage for future use

  • Erect non-habitable structures that don't require taps (check zoning codes!)

  • Pour driveway or flatwork early to lock in prices before inflation hits

⚠️ Important: Don't overdevelop without knowing utility impact fees — those could change before water access is restored.

🚨 What Not to Do:

• Don’t panic sell. You’ll likely lose equity due to timeline uncertainty.

• Don’t violate city code. Drilling a well against policy or bypassing permits could kill future resale value or make the lot unbuildable.

🧭 Strategic Perspective:

This situation — while frustrating — won’t last forever. And once the moratorium lifts, build-ready lots with clear title will be in high demand. You’re in a better position than many developers who didn’t buy in early.

If you’d like, I can send over: ✅ A “Land Holding Strategy” checklist
✅ A sample Utility Delay Timeline Planner I’ve used with private builders
✅ A list of alternative monetization ideas during holding periods

Just DM me the word “CULVERT” and I’ll send it over. You’re not alone in this — and you’re still in the game.