Why is it important to many land developers to be in city limits?

Question

I’m following a course by VestRight about land development and a lot of the course is focused on getting land outside city limits to be annexed by the city so it can then be developed. My question is why is it so important for development of a subdivision to have a property considered to be within the city limits?

Jay Hinrichs · Answer

basically in most jurisdictions you must be in the city limits to access city water city sewer city storm drain.

power tele and internet and gas many times is separate and called franchise utilities and can be available to those out of the city limits.

Jay Hinrichs · Answer

From what I see TExas is 10X easier in all phases and much cheaper..  I mean I see new construction there selling for what we have to pay just for permits.  :)  And I am only a big deal in my own mind.. just like everyone else I just been doing it longer thats all.

Greg Dickerson · Answer

Utilities are one part of the equation but it really comes down to demand. Developers need to move product so we focus on where the demand is. Rural land is more of a wholesale flipping play vs development. Also not every city or county is will to annex property and as the developer you don't always want that either.

Bruce Lynn · Answer

Some may want city services, water, sewer, trash, utilities.  There are alternatives in many locations such as creating MUDs and PIDs, but not all developers may be able to do that or want to do that.

Zachary Cook · Answer

@Jay Hinrichs wow you’re a big deal man! Thanks for answering my post I’m loving your podcast with them. Will be interesting to see how different things are executing down here in Texas, versus you guys up there in Oregon. Thanks again for answering my question. What an awesome forum

Zachary Cook · Answer

@Shaun Lindley I’m just getting started going through their program, so I don’t have much insight yet. But it seems to be great so far. That post you shared was super interesting, my main take away is that these guys are legit, just had some struggles with their sales process and it left some sensitive people with a bad taste in their mouth.

Zachary Cook · Answer

@Jay Hinrichs okay got it which I’m sure those things are critical for the typical style of doing a subdivision where the homes are close together. Thanks for the info!

Shaun Lindley · Answer

@Zachary Cook Thought I'd share the post from a few months back regarding that company.  Curious about your experience?

https://www.biggerpockets.com/...

Why is it important to many land developers to be in city limits?

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