All Forum Posts by: De Rasche

We have toyed with an RV park and this is what little I have learned.

If no services, then septic not going to be easy in flood plain.  Check with county for a feasibility.  A lagoon may work per your county engineer.

To create and run services to each site locally is about 15k a site for RV.   Gravel, concrete pads, and or paved will impact that number. 

If open fields or wooded determines aesthetics. 

Target is cross county RV travelers or permanent users?  Impacts your amenities you mentioned.  The Yogi bear parks in Northwest  areas are a good sone to visit to learn.  

Lakes take about ten acres of flow locally to gain an acre of lake to maintain without a well.  We struggle with sand pockets here and the lake ever sealing.  Your county agent will be a big help and usually are glad to help.  In our area they will pay part of the cost if fits their criteria, but always helpful with advice.  

Do your due diligence and calculate your worst case scenario risk per Sam Zell.

Then decide.

Test the market

Do a coming soon/pre-sale 4 by 8 foot quality sign.  About $500 in our area.

Stick sign it in the ground and info on the mls, etc. and see if you get any serious calls.

I agree with Mr. Plante

Existing road frontage is key to making this model work economically.

In our area, you can sell land/estate sites without a plat which makes life easier with zoning and codes.  No sidewalks, streetlights, curbs, etc. required if a land sale.

The reason is that if selling over four acres here, then you are selling land/a farm, not a lot. Zoning will have that info for your area.

We also can access county (secondary) roads at will for driveways, not primary state roads. A primary state road requires a process. So check with zoning as they are trying to maintain traffic flow on main roads by limiting access and may require an internal road.

We do realize we are leaving money on the table by not doing three lots per acre. We buy larger tracts at a economy of scale price, recognize we are not subdivision developers, want the land to remain a wildlife friendly, wooded product.  Making us different from most other home site options on our market.

We have a large tract we are going to put one internal road in, sell 8-10 acre lots and when done, let an HOA takeover and "they" can petition for the road to be county maintained or just self maintain. Our road set aside will be to county specs just in case.

Only do road far enough to sell initial sites, then let that money fund the road further.  

Our area we are mainly appealing to are empty nesters trying to get out of taxes, crime, no need for schools, etc. of the city.

The land is also heavily wooded and provides low grass lawn maintenance and seclusion if that is what the consumer wishes.  Large enough tracts to allow for multiple home site choices, but deed restrictions limit minimum home size and number of structures, etc.  Buyers put their well in or septic system.  They may buy two tracts side by side so we would never know where to place those services. Thus official survey after contract on the land. 

Hope 2 cents worth helps.

I also am concerned about that 11 lot statement.  Would have zoning tell me in writing the steps and affirmation that can happen. 3 to 4 houses per acre with road and setbacks is ok for 1600 sq footers or less in our area.  Hope you have city sewer that allows it too.

Make sure as sell lots loan is not impacted.

2 cents worth.

The Land flipping we do simply is buying the whole pie at a grocery and selling pieces at a restaurant.

We do not do lots, but the minimum acreage to be considered a land sale over lots. This way we bypass the subdivision requirements.

Friends do lots with bigger profit per acre along with more costs and time invested.

Maybe it is “both and” for you by doing both?

Our ideal is a large land tract with a home on it that we rent out till the city catches up with the land.

If the tract is too expensive for us alone, we bring in other buyers and divide at closing if the road frontage allows for large splits.   No partners for us.

Maybe start small and grow,  

Zoning may be an issue to clear with local Gov.

Post a survey?

Road frontage is key as can sell off acreage.

In our area, over 4-5 acres on a secondary, not state or federal, road is a farm.  

No subdivision plat needed.  So ck in your area.

If a developer, sell to one is my advice. Don't agree to putting up land and they build home and you get paid for lot at closing. Too risky if mechanics liens, etc.

Think buying a pie at grocery store and selling pieces for desert at restaurant to max out profit with land.

Shelby County is having issues with new sewer hookups, so do your due diligence.

The system is overloaded and may have it worked out, but have not heard.

Follow jobs, schools, railroad, and new highways on a local level.  

Memphis is declining in population but,

Ford announced a development just east of Memphis with 30000 jobs affiliated and a second 3600 acre supersite is announcing soon in North Miss. near Memphis with 20000 plus more jobs.  The N. Miss. jobs followed a intermodal with rail that already has brought in Volvo, Amazon, Kellogs, Post cereal, Michelin tire (TBC), Milwaukee tool, Nike, McCormick spices, and six more in process.  Diverse companies that will endure a recession.

Arlington is a community east of Memphis that will be a great rental or flip area with a great school, but sellers have priced for that.

New subdivisions going in around industry mentioned above in North Miss. in small communities there.  1-269 from Mexico to Canada through it and workers can live a bit further with that type commute.

Personally we land bank ahead of those trends, but most investor sales here are cash flow rentals.

There will be a local area or micro area near you that is doing a similar short and long term growth job growth, etc.