Land rezoning for profit?

Question

Hello all, new to the BP forums! My name is Marc and I am just starting my journey of finding creative ways to invest and make profit from my real estate knowledge. Read a lot of books, and am looking to put my knowledge to practice. I'm from the Southern, MI area and I am also building my real estate media business, Elicit Real Estate Media Co. Looking to possibly start investing with some whole sale properties and land. Does anyone have any first hand experience with buying Ag Land and rezoning them to residential or commercial properties for land flips, is this profitable?

Stuart Udis · Answer

Can it be profitable? Certainly. However I am not sure its the best investment strategy for someone who is just getting started. Entitling land is capital intensive and presents a number of risks.

Drew Sygit · Answer

As already stated, being a Developer is very capital intensive and can take years.

How are you going to buy the land to began with?

M Fuci · Answer

I was thinking about talking with a modular home company and starting a lower middle class mobile home park. The land is currently zoned Ag. Wasn't sure if I would create additional equity from getting it rezoned to Res.

Alex Mocanu · Answer

Hey Marc! Nice to meet you on here! I am in your same market. Currently live in Livonia and have a couple rentals in Ann Arbor and Royal Oak. As Stuart mentioned above, your strategy is pretty capital and time consuming. It can be done for sure, but one wrong move can wipe you out, especially in the beginning. Developing a mobile home park could be very profitable, but the costs to bring utilities (power, water, sewer/septic) can add up to hundreds of thousand.

Land rezoning for profit?

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