Is it financially wiser to buy new or renovate older homes? Learn the pros and cons of each to decide which is better for you.
Browsing: new construction
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This is Part 2 in the Residential Land Development series showing you how to find, price, and develop land for residential single family property.
If you’ve followed Residential Land Development Part 1 you’ve put together your development team, done a little research into the type of property you want to build and the market you will farm for potential land purchases. You’ve determined the highest and best use, researched zoning and other legal matters, and now need to determine the economic feasibility of the project. We do this by estimating the overall costs of the project. The results of your down and dirty, quick economic feasibility analysis will determine whether you move forward with your project, or whether you dump it and move on to the next piece of land. Here’s what you’ll do:
Last week I wrote an article describing how to price and develop offers on land purchases. While that information is an important part of the overall development process, it is only a small fraction of the work that needs to go into developing land for residential use. As such, I’d like to explore the residential land development process in a more thorough manner, which will include this article, and several to follow.
With that said, this article will focus on the process of land development, risks and rewards, and a few things you’ll need to get started in the business of Residential Land Development.
Land development is the process of preparing raw land for the construction of improvements.
It can include:
- Demolition of existing improvements
- Clearing and Grading
- Rezoning if required
- Installing utilities, sewers, streets, and sidewalks
- Constructing Improvements like driveways, foundations, and building pads
Although developed land creates no more income than raw land, it is nevertheless brings land one step closer to its ultimate use; a home, apartments, office buildings, hotels, etc.
From the concrete streets of metropolitan cities to the sprawling suburbs in most areas around…