For an ambitious real estate investor, there are many options in the market which can help you make more money with manageable risk. However, only educated investors can lay their hands on such deals in the market. One area which does not get a lot of mention in real estate discussions is domestic land development but if you want a unique way of safely increasing your investment portfolio, you should understand the basics of this untapped strategy.
While there may be a lot of land for sale that has not sold these hidden opportunities can become a good source to increase your income. To do this successfully, you need to assess the needs of the area and/or neighborhood, develop a comprehensive development plan, study land use regulation both present and future and also evaluate the potential of other developments. Once you have done your research then you need to implement an exit strategy to make the land deal profitable.
Using the Comprehensive Plan
This is the bible of domestic land development and it provides planning guidelines and policies of a city or county to the public. It is thus a guide developed by evaluating the city’s current land use which pegs future land use on anticipated population growth and also on current and projected future economic data. With this master plan, you will be able to make an informed decision on where to buy and develop your land. At this point, familiarize yourself with the realtors and ask them all questions which you feel need answers.
Entitlement and Permitting
You need to secure or advance your entitlement using a professional team while also getting approval for development plans, building, and inspections. Environmental issues and their impact on your property are crucial and environmental site assessments (ESAS) are a fundamental in land development. Another exit strategy is to increase the value of the land by doing the entitlement and permitting then sell the land to a developer.
This is a crucial strategies because it helps you get create a packet to solicit investors for private money. This packet provides all key aspects of the property. It includes owner of record, property size and shape, site location exhibits, topography among other key features.
To get the best value for your property after development, you need to get better use for it and zoning improvement can include changing an apartment zone to condos, retail to office, office to condo as guided by the master plan and also your expected return on investment. Rezoning will be guided by the local county authorities and you need to get all their guidelines to avoid problems in future. Professional firms in the construction industries are also vital in giving an impact study, site plan among other services. Platting is also done at this point to help increase the value of your property when making it ready for development. You could stop here then just sell the property to a developer.
Two more exit strategies are selling your vision and developing the land. However, developing gives the least ROI. Whatever you do as an investor, always remember that using professionals in the industry is crucial in order to expedite the process and also do it ac.