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Yes But, How Do I Evaluate Buying Undeveloped Land And Get Into The Business?
These real questions on buying undeveloped land are answered by a US Master Builder and myself after receiving them from readers of my e-book, "Residential Development Made Easy." Question 1. What are some factors to bear in mind when purchasing undeveloped land for the purposes of rezoning? Master Builder & Developer's Reply: Study your Town Plan and see where your Council Planners want the physical growth direction to take place. Go and talk to the Planners - don't ask them for their opinion - you might sue them in a few years time, so they won't give you an opinion. However they will talk about Councils plans for growth. Ask about utilities such as water, sewerage, roads etc. These are very costly and they will want growth to take place where existing utilities have capacity to handle the growth. This way if you acquire raw land for rezoning, you are working within the "thinking" of the local authority. Be prepared to hold on the property for a long time. First thing to check before purchasing is to ensure it's not part of or can be part of endangered species. Then make sure that it was never part of or owned by a gas station, fuel company, salvage yard or had tire dumping. Also get expert tests. Make sure the land will allow for property to be built on it. Question 2. What methods does the builder use to evaluate prospective parcels for development, and determine the price to be paid for the land? (Again, assume we have a basic level of understanding) Master Builder & Developer's Reply: "Land is only worth what you can do with it."Question 3. What general advice would you give to developers who are just getting their feet wet in the market? Master Builder & Developer's Reply: Locate a Master Builder to work with. Master Builder's such as me, have a vested interest in ensuring your profitability. We can answer the questions you have about what to build and how to determine profitability. We enjoy mentoring and growing our developers. I also recommend new developers buy and study Colm's e-book, "Residential Development Made Easy." No other experienced developer has taken the time to write an instruction book like his - anywhere in the world, that is, so it is truly unique. The more successful and profitable you are the more successful and profitable we are. Be honest with the Master Builder you choose to work with. Ask for their assistance. In my case, because I am licensed, bonded and insured in all 48 continental states, I can help you put together a Residential Development Team who will provide you with their experience and support your efforts. We can provide you with financing for the development (if you qualify), financing for your home buyers, insurance, help you locate land, advise you on property, create a demand for your homes, etc? We work with developers with various levels of experience and who have varying levels of being actively involved in the decision making. A Master Builder can guide you. Show you how to get started. Get your feet wet. Example: I might start out with helping you to create a Residential Development Team or connect you to mine if I have one in your area. Then we would locate a lot in a development by another developer. Then we would help you to conduct basic market research in this controlled environment. How to write up a proposal for the builder (us) to work with you. Then the realtor would find a buyer for you. You'd sell the home. And, we'd use that one home to create a demand for more of our homes. You'd repeat your success a few times until you're comfortable and ready to develop your own raw land. Author & $1.2 Billion Developer, Colm Dillon, Has Written The Best Selling 'How-To' E-book, "Residential Development Made Easy," With Readers In All States Of The USA, Canada, Australia, New Zealand, UK, Ireland and 79 Other Countries. His Independent Web Site is: http://www.realestatedevelopmentcoach.com/ez
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