Whats the best way to capitalize 30 acre land?

Question

if you can get a 30 acre land whats the best way to make the most money out of it?

apartment complex?
sub division ?
rental homes?

Victor Belman · Answer

May be building apartments and renting them out will give you good return.
As Bill said, Golf course is also a nice idea. Find out what GA people need more and research a bit to know where to invest.

Bill Gulley · Answer

Any gold, silver, oil or natural gas there?

Golf course, theme park, motel, lumber yard, strip mall, warehouse, office building, what about a carpet mill, not many of those in Ga. (LOL)

Karen Margrave · Answer

Shaneel Lalani Once again, you are posing the wrong question for the information you provide. What you can do in theory is completely different from what you can probably do in reality. The fact is, without knowing the zoning, nobody could tell you what the highest and best use of the property is. Without knowing the answers to many other questions, nobody can say if it would be a marketable project. I can tell you one thing, if you have 30 acres, your best bet would be to sell it to a developer that has the experience to develop it, and you take the money and run! No offense, but it's obvious you don't have the experience to do it.

Joel Owens · Answer

"It's in Atlanta ga, not sure about the value around but forget the expense and land value my question is if you had a 30 acre land in a decent area what would be more profitable?"

This statement makes absolutely zero sense to me.

Of course the expense and land value factors into the profitability of a project.

When I look at land I determine highest and best use. Then you need to determine if you just want to sell to a developer, partner on it for all the return, or get partial payment today and a return with a equity on the back end.

You have to time value of money as well where you can make 300k today for sure or if all of these variables happen get 500k over 3 years where all these things could go wrong and you never see all of that 500k.

Land values are never the same. I can show you a parcel asking 200k per acre for 10 acres and you think it is a better deal at 2,000,000 then the 10 acres across the street for 300k an acre.

The 300k acre actually turns out to be cheaper before going vertical. you find the 200k per acre property has horrible topo to level out at a cost of 250k per acre. The other 10 acres is level and needs only 75k per acre to level and does not have easement issues like the other property with adjacent land owners.

So now the 10 acres you thought was a steal is 510k an acre before the vertical improvements with easement payoffs . The other property that seemed expensive was 300k and acre, 75k leveling and no easement issues.

That's 375k an acre versus 510k an acre. This is just an example with many other factors needing to be involved. Say one side of the land is in one county and the other part is in another county. Just by being in different counties even though the land is close to each other the costs and time lines are way different.

Jon Holdman · Answer

Shaneel Lalani, there is no simple answer.  Maybe the most profitable strategy is to build an apartment building and hold onto it for 40 years.  Maybe you sell it to a REIT.  Maybe you sell the 30 acre parcel as is to someone who's going to turn it into a corn field (totally serious, farmland is, once again, command premium prices).  Maybe you do the "horizontal development" and put in utilities, water, sewer and roads and sell the lots to builders.  Maybe you do that and then do the "vertical development" to actually build the houses and sell those.

You must do your own research and analyze the alternatives.  There is no nice, neat, one-size fits all answer.

Shaneel L. · Answer

It's in Atlanta ga, not sure about the value around but forget the expense and land value my question is if you had a 30 acre land in a decent area what would be more profitable?

Or let's say what's more profitable apartment complex? Subdivision? Any other things?

Karen Margrave · Answer

Jon Klaus is correct, there's not a simple answer to your question. Where is the land at? What is the zoning? What is the local economy like? What is the market like in the area where the land is located? Where are the closest utilities? Are there any environmental issues with the land? Is it flat or on the side of a hill? What is the neighborhood around the land like? and... the biggest question of all, what is your experience, and how much money do you have to work with?

30 Acres can house a good sized subdivision, or 1 farm. We really need more information to give an answer.

Will Barnard · Answer

You pose a very broad question with vague details, making it difficult to answer.

Location plays a huge role, highest and best use report will tell the full story.

Jon Klaus · Answer

Coastal California or 50 miles out of El Paso, or ???  Location is a huge factor.  There are many factors. Your question/answers can be quite complex.  What else can you tell us?

Wayne Brooks · Answer

Research "highest and best use".