Help!Purchasing 2-20 acres to subdivide into multiple resid. lots

[Fernando Ramirez]

I am working with an investor(family member) & partner(friend/RE Agent who owns 15 rental properties, flipped apprx 20 properties over the last 3 years with partners). 

We are all bringing $ to the table (collectively $130k) 45/45/10 split

Our goal is to purchase 2-20 acres subdivide into 1acre residential lots and build spec homes.

We've looked at 20 acres ($200k) in Terrell, Kaufman, County, TX and 6 acres ($160k) in Princeton, Collin County, TX. Both owners will entertain carrying note for 24-48 months. Both land sites have utililities (electric/water)

What questions should I ask the city/county when I call to inquire about zoning and r-plotting? Trying to do some of the leg work without bothering my partner.

All advice and guidance is greatly appreciated!

About Me:

1998-Purchased first property @ 18yo(currently owner financing)
2001-2nd house in 01' @ 21yo - sold in 2016
2009 purchased incomplete construction home for $70k & sold in 16' for $170k
2016 Built 2300 sqft home built (used builder)
2017/18 flipped a mobile home ($65k invest/$120k Sale)
2019 First wholesale deal $10k payday

[Greg Dickerson]

@Fernando Ramirez you need to ask the city what is required for all approvals and time frame, if you have to install curb, gutter, sidewalks, street signs, street lighting, any specific street design requirements, DOT requirements or permits, DWQ requirements or permits, permit fees, proffers, water/sewer tap fees and process, bonding requirements, inspections and CO process. Your civil engineer will handle all of this but it's good for you to know exactly what's required.

You also need to check with the utility companies and get cost estimates from them for fees, hookup charges, transformer locations etc. Again engineer will also gather this info but the more you know up front the less leg work they have to do which means less fees.

You will need cost estimates from site work contractors for sitework, roads, installation of utility lines etc.

With seller financing you want to negotiate a lot release schedule so they get paid a certain amount for each lot that sells vs a timeframe with interest.

This is just a high level overview but should be enough to get you started.