Subdivision development questions

1 Reply

I recently subdivided a prime 1 acre parcel in our small town into four additional lots. The sites are perfect for small single-family housing- close to schools, shopping, downtown, etc. I typically finance all of my projects out of pocket. I am looking for insight on the best way to finance development of these properties. Should I be speaking to lenders up front and build spec? Should I advertise the lots for sale with a build to suit option? Do I use a realtor to advertise the properties and homes to be built or do I advertise myself? Thank you in advance for your response.

@Mike Bellevue - Sounds like you have a cool deal going. In the current market, more and more people think we are closer to the top than the bottom, I am passing on projects that could take longer than 9 months. I am looking for the deals that can be done in as short of time as possible with as little capital out as possible. If you were to build, this could take some time, and tie up capital. I would rather sell the lots to spec builders and let them take the risk of building out. 

At the same time, others might love the opportunity to build as there would be more upside. 

Hopefully others will chime in with ideas.

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