Any land developers here?

[araomd]

I am looking at picking up a large parcel of land just off the NE edge of Lake Allatoona in Cherokee County as investment property. One day it will be developed and I wanted to talk with someone to help me understand what developers are looking for. I know the basics of zoning, sewer, future land use maps etc but I am trying to figure out more the development costs, especially with topo.

I will be happy to buy the beer and dinner if anyone can spend a few minutes to explain some of the basics. Or discuss over shooting on an outdoor range I have near by if that is more of an incentive.
Thanks in advance!

 

[mtn Dan]

I am looking at picking up a large parcel of land just off the NE edge of Lake Allatoona in Cherokee County as investment property. One day it will be developed and I wanted to talk with someone to help me understand what developers are looking for. I know the basics of zoning, sewer, future land use maps etc but I am trying to figure out more the development costs, especially with topo.

I will be happy to buy the beer and dinner if anyone can spend a few minutes to explain some of the basics. Or discuss over shooting on an outdoor range I have near by if that is more of an incentive.
Thanks in advance!

the main issue is simple..at what price must I sell the lots for to make a profit..it depends on your purchase price going in..plus the amount I need to cover the infrastructure cost..last is the location.. pasture views and water are important.. it depends but I see a lot of people wanting 3 to 5 ac estate lots.. if you go with the larger size lots the sub division rules are less complicated and less costly to develop in most cases...

 

[mtn Dan]

the main issue is simple..at what price must I sell the lots for to make a profit..it depends on your purchase price going in..plus the amount I need to cover the infrastructure cost..last is the location.. pasture views and water are important.. it depends but I see a lot of people wanting 3 to 5 ac estate lots.. if you go with the larger size lots the sub division rules are less complicated and less costly to develop in most cases...

on the topo issue..if its steep the build cost can be higher.. especially in the foundations of the houses.. higher elevations can have good views..views sell

 

[araomd]

the main issue is simple..at what price must I sell the lots for to make a profit..it depends on your purchase price going in..plus the amount I need to cover the infrastructure cost..last is the location.. pasture views and water are important.. it depends but I see a lot of people wanting 3 to 5 ac estate lots.. if you go with the larger size lots the sub division rules are less complicated and less costly to develop in most cases...

That is exactly what I am trying to figure out. I am a real estate "extreme value" investor and I try and buy for lower than market price when a seller is in a liquidity crunch, in this specific case it was bank owned. So I have my cost basis, just trying to figure out the exits, and the more there are the better for me.

I could just flip it to the next guy since I got it cheap, do a conservation easement, or break it up in to the lots like you mentioned, or sell it to a developer. The last one probably has the highest profit but the longest exit. This is the hardest one for me to figure out since I don't have any experience in it. I don't want to make a big mistake by not knowing what I don't know.

Holding long term to make a good profit is OK with me, I do just fine on my day job and if my kids wind up with it that is no problem. And while I'm holding it anyway..... hunting, 4wheeling, tactical pistol range, long range precision rifle, etc.

 

[araomd]

I see a lot of people wanting 3 to 5 ac estate lots.. if you go with the larger size lots the sub division rules are less complicated and less costly to develop in most cases...

I am hoping this is the case. While sewer is less than 2 miles away, it is "rural" under Cherokee's future land use map and it may not come there. It is difficult for me to see what the whole north shore of Allatoona will become if not very low density residential.
Is septic that big of a concern with very low density of housing? Lots over 2-3 acres?

 

[mtn Dan]

That is exactly what I am trying to figure out. I am a real estate "extreme value" investor and I try and buy for lower than market price when a seller is in a liquidity crunch, in this specific case it was bank owned. So I have my cost basis, just trying to figure out the exits, and the more there are the better for me.

I could just flip it to the next guy since I got it cheap, do a conservation easement, or break it up in to the lots like you mentioned, or sell it to a developer. The last one probably has the highest profit but the longest exit. This is the hardest one for me to figure out since I don't have any experience in it. I don't want to make a big mistake by not knowing what I don't know.

Holding long term to make a good profit is OK with me, I do just fine on my day job and if my kids wind up with it that is no problem. And while I'm holding it anyway..... hunting, 4wheeling, tactical pistol range, long range precision rifle, etc.

well it sound like you got into it at a decent price.. right now i would do some sweat equity.. go on the weeks ends and do some clean up on any roads or areas that would open up views or give access to any streams or creeks ect.. the better it looks the more you can sell it for.. if you can sit on it don't worry so much over the exits right now ! id try to do cost effective improvements to make it look better for the next buyer..(who might not be a developer) just a guy like your self who is looking for a get a way property... you can pm me your number if you like..id be happy to give you my 2 cents

 

[araomd]

Thanks, will shoot you a PM. Any thoughts about trying to get it re-zoned or doing a proposed plat for residential use? Or will that just cost me and the buyer will want to their own thing anyway?

 

[mtn Dan]

Thanks, will shoot you a PM. Any thoughts about trying to get it re-zoned or doing a proposed plat for residential use? Or will that just cost me and the buyer will want to their own thing anyway?

in the short term I wouldn't worry about the zoning or a proposed plat.. plenty of time for that