I have come across a 105 acre chunk of land that is boxed in by small neighborhoods, a church and cemetery, etc. The seller is willing to divide the land or sell it all. He does not have the funds to develop the land but is open to partnering. This land would be ideal for a 55+ community and there are several nearby that are sold out.
I am a real estate agent so I have a little money but 0 experience with vacant land or developing. I have sold a few new construction homes but that’s about it. I would love to get my feet wet with investing but this size property is more than I would want for my first one.
I am wondering what you all would recommend?
Hi @Erica Heath ! I am with Land Academy and helping people with buying and selling land is our forte. I'd love to connect with you and see if any one in our community is near by and knows of developers in the area.
Seems to me it'd make sense to get experience on the new construction side before getting into large development stuff like this.
I’ve had a few inquiries into vacant land lately and if I was in your situation I think I’d speak to a developer to see if they might want to partner up BUT I’d only include a portion of the property. The experience you get with developing a parcel of the property could help you decide what you want to do with the rest of the property.
Agree with Jim. Definitely get advice from a large developer with experience in this area.
You need to familiarize yourself with the price of serviced lots versus unserviced lots. If there is a big difference, the first thing you would have to do is file a plan of subdivision. Once the plan is approved, you can do the development in phases. The proceeds from the sale of phase 1 serviced lots can pay for the servicing of phase 2. You continue the process until the development is complete. If you don’t have the cash you can set up a joint venture with the owner borrow the cash to service phase 1 and the rest will pay for itself. When the servicing is complete, you split the profit with the current owner of the land.
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