Opportunity to purchase land, but no idea how to start developing
Hi all, and thank you in advance for the great information that will be provided.
I have the opportunity to purchase 7 acres off of a busy highway in NC for a very low price. (Zoned residential) In a perfect world, I would like to subdivide and place 4-5 SFH's on the land.
The homes on the road are on septic and have wells. Any help on how to start would be greatly appreciated. I’d like to use hard/private money to fund the deal, but have no idea how to structure it, or what all I need to consider beyond surveyors, contractors and well drillers.
Do you work this like a cash-out refi once complete?
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Hi @Matthew Clanton, I am working on a 13-acre subdivide in rural Minnesota right now. This is my first, but I'll just share what I have done so far. I've checked with the county to verify zoning and setback requirements. This zoning district requires a minimum of 1-acre and 150' wide lots and has 100' setback from the riverfront. Based on the width of the property, I can create five lots each about 2.75 acres and 156' wide. I could request a variance to further reduce the size, but I am actually really happy with these dimensions. There is a cabin shell existing on the property that will fit perfectly on lot 2. It already has a well, electricity, and water. So, my plan is to list lots 3,4, and 5 for sale immediately and simultaneously rehab the cabin. Once I have a better idea of each parcel's value, I'll sell the final lot. It will be a little less desirable as there is a neighbor's easement going through it.
While I was preparing for this deal, I looked for resources on development and subdividing. The only thing I could really find was civil engineering textbook and I didn't want to pay a $150 for it. I found a book on Amazon, "The Land Flipper." It reviewed really well, but was pretty basic. I am a slow reader and I read it in about a day and half picking up a couple of good tips along the way.
My biggest concern right now is trying to figure out how much a private road will cost. None of the parcels have road frontage, but instead the main parcel is accessed through an easement transiting through state land. So I need to build a private road about 750' in length along the backside of the property. This is a rural property and I know that not all roads are created equal. Not tying to hijack your thread, Matt, but I'm wondering if @Greg Dickerson could offer some thoughts on rural private gravel roads. Thanks.