I am looking at buying 150 acres and turning it into a sub division. It has great location but I know very little of how to do this. Does anyone have any strategies they could share or any books the recommend? Maybe even things to look at and pay more attention to? Any input is greatly appreciated.
Thank you guys.
@Kieran Mason there is a lot to know before you jump into a project like this. Development requires patient capital and experience. First thing is to make sure you can do what you have in mind from a zoning standpoint. Next is to determine highest and best use of the property and the appropriate mix of product. You need to do a feasibility analysis to determine if there is sufficient demand for the product and number of units you plan to bring to market. You need to make sure there are utilities to serve the property. on much more. I am happy to discuss more. Feel free to shoot me a PM to set up a time.
This is also something that interests me. My eyes glaze over a bit though at the cost of developing 150 acres. Unless you were able to sell to a few very aggressive builders, it would take a long time to develop and sell enough of these lots to finally get to your profit.
Without knowing the specifics of your deal, keep in mind you can phase a 150 acre single family development to do 30 acres or so at a time, which will help diminish your risk and development loan interest. It's smart to get zoning and platting approval for the whole project up front, but only develop portions as you go and as demand drives lot sales.
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