Steps to Acquire a Tear Down
Hello
Over the past year I have been marketing, and door knocking on off market properties in my area. The two I successfully put under contract were tear downs. The deals have since fallen apart due to my lack of experience. With both deals I had the funds to close but with both I made the closing subject to obtaining a building permit.
I am a novice with this transaction and would like to know what builders do to acquire tear downs.
Lets say for example a lot does not meet the current zoning bylaw for that zoning district. Would a buyer builder spend money obtaining a variance prior to closing ( with no guarantee they will get a variance ) or would the seller typically go get the variance? Is it even possible for a perspective purchaser to go before the ZBA for a variance on a property they do not own yet? Or would the buyer builder buy it without the building permit and gamble obtaining it at a later date once they have a variance?
I think the reason both my deals fell apart was because I did not want to close until I got the building permit and both deals required a variance to build a new home.
Any builders on this forum I could speak to about their strategy.
Thank you