Real Estate Agent · Slippery Rock, PA · Member since 2016 · 29 posts · 7 votes
Hi Everyone,
I am a real estate agent trying to help my local golf course potentially develop some land around the course. We have met with a local builder who has been building a development on a defunct golf course nearby. The builder told me how they came up with a pitch deck for investors to buy the land and develop it. Is that the normal way to do things and he just lucked out? I would like to help find investors or other outside help to push this idea further. If the golf course did not want to out right sell the land, could the development be put into a separate trust to be paid out to investors? Or do most want to own the land outright? I have even discussed equity with golf course itself being an option with the owners. Any insights, thoughts, ideas would be appreciated. I have 10 years experience in real estate but development would be a new thing for me that I am excited to pursue!
Any investor who is willing to open a business or risk putting their hard earned money into a business and "Do Not" own the land is called an "Air Ball". It's one of the worst investments due to the risk of the land owner. You have to factor in the "What if Factor" meaning what if the owner gets divorced, Gets a major illnesss, Passes away and family wants to litigate and sell the land to a developer versus collect rent for a Golf course.
The insurance is higher due to protection of liability from you the company and land owner.
I am a real estate agent trying to help my local golf course potentially develop some land around the course. We have met with a local builder who has been building a development on a defunct golf course nearby. The builder told me how they came up with a pitch deck for investors to buy the land and develop it. Is that the normal way to do things and he just lucked out? I would like to help find investors or other outside help to push this idea further. If the golf course did not want to out right sell the land, could the development be put into a separate trust to be paid out to investors? Or do most want to own the land outright? I have even discussed equity with golf course itself being an option with the owners. Any insights, thoughts, ideas would be appreciated. I have 10 years experience in real estate but development would be a new thing for me that I am excited to pursue!
@Brandon Simmons It sounds like you're approaching it the right way by talking with both the landowner and an experienced builder early. Before raising capital, I'd focus on validating the development feasibility, entitlement timeline, and a preliminary financial model. Having those pieces in place will also make conversations with potential investors much more productive.
Brandon, the builder’s pitch deck is a normal way for a developer to start the conversation, but I would not assume the golf course needs to sell the land outright for the project to move forward.
There are several ways this could be structured. The course could sell the land, contribute it to a joint venture in exchange for equity, lease the land to the development entity, or grant an option while zoning, engineering, environmental, utility, and entitlement work is completed. An option is often worth considering because it gives the developer time to confirm whether the project is actually feasible before anyone makes a permanent decision.
Before approaching investors, I’d focus on getting a basic feasibility package together: ownership and title information, survey, zoning, access, utilities, environmental concerns, likely unit count, development budget, timeline, projected returns, and each party’s role. Investors will also want to know who controls decisions, who covers cost overruns, whether the golf course is contributing land or cash, and how everyone gets paid.
I'd also avoid casually pooling passive investor money before speaking with a real estate attorney familiar with development partnerships and securities rules. A separate LLC is common for a project like this, but the ownership, tax allocations, capital calls, guarantees, and exit provisions need to be worked out before money changes hands.
You may have a real opportunity here, but the first step is probably not finding investors. It’s figuring out whether the land can support a viable project and choosing a structure that protects the course while still making sense for the builder and investors.
I’d be happy to connect with you to discuss this further. I’ve been doing feasibility studies for the last 20+ years and with most publicly available data can provide you with an opinion and short risk analysis.
With the golf course remaining in tact, we should be able to get approximate boundary lines from the city or county GIS maps to truly see what land is available for home sites. Then we could see where to route roads and if utilities are available. Public info could identify any floodplain or maybe wetlands but if maps do show these areas then environmental professionals would need to accurately flag them and a surveyor would map them out to avoid or provide the process to permit working in them them.
It’s really tough to give you an exact road map from the information you provided but like I said at the start I’d be happy to connect and answer any specific questions you have.
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