New Lake Being Built. How Can I Take Advantage?

Question

Hey guys, I am the definition of a “newbie” with real estate investing. I just found the podcast and this site a few weeks ago.

I live in North Texas and recently found out about a massive lake being built. It is the first new major reservoir in Texas in nearly 30 years and spans over 16,000 acres. Ofocurse it is supposed to spur major economic growth in this otherwise small rural county.

Common sense tells me this could be a major opportunity but I’m not sure where to even start or what the best move would be given the circumstances.

I know this is a very general question, but any tips/direction would be much appreciated!

Thanks

Kai Kopsch · Answer

Sorry, Michael, I'm from originally from Germany and sometimes my autocorrect didn't work perfectly. My client bought (purchases) a lot on Lake Norman in the 80th for 10K and now it's over 1M

Shaun Kelly · Answer

Hi Michael, Sorry I should have been more clear. I was originally assuming you were talking about owning a waterfront property - which in that case there wouldn't be many old properties with waterfront. New subdivisions/houses would be built along the new waterline. However, if you are just looking to invest within the area around the lake, then my point is void. Although I believe it is still a pretty rural area for several miles with large farmhouse lots.

Michael Winans · Answer

Thanks Theresa!

Michael Winans · Answer

Thanks Kai. What do you mean by “portage the lot”?

Tried a quick google but didn’t find anything!

Michael Winans · Answer

Thanks Shaun. What do you mean by every purchase will be a new build?

Great point on the new subdivision with few or no HOA’s!

Dmitriy Fomichenko · Answer

@Michael Winans

Welcome to the BP family! Good to have you here! Here are some recommendations for you:

Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/usersSet up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsRead Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

Wishing you the best!

Theresa Harris · Answer

@Michael Winans  You'll have to know what will be lake front which might be easier said than done given they have to flood some of the land.  Look for larger pieces of land with the potential to subdivide and build multiple homes.  Think about water access as well-a gentle hill vs flat land.

You could also look to buy existing homes as there will be people moving their for work.