land development, newbie

[Jennifer Lee]

hi bp

I have been approached to be part of a land development project.

100 acres, approved for 700+/- multi units.

Limited partnership.

Raw land

Meeting with the contact tomorrow.

What questions should I ask?

A big community developer maybe interested for their new plan.

Or

"We" develope it ourselves.

I have been given survey, topographic map, site plan, approval and LP agreement.

I don't know the process. Totally new at this kind of REI

I have spoken to new construction and commercial contacts.

Just want gain more knowledge jere

Thx

[Joel Owens]

Jennifer,

How long would your money be out there and when is the projected return and how much is it??

If your buy in is only a very small amount of your worth ( example 100k out of 2 million) then it will not take you down if it goes south.

A ton of work goes into these deals. On the commercial side from site selection, buying the land, and building out can be a 5 to 7 year process or longer sometimes.

I wouldn't do this as your first. You want to dip your toe in the water not to try to swim to the bottom of a 100 foot pool and then try to make it back up okay without running out of breath.

Try buying smaller pieces of land to limit exposure and go from there. I have a experience on big projects for developers and I wouldn't buy into it. Not just the politics but too many cooks (owners) in the kitchen. Each buyer will have a certain stamina for making the deal work and then will want out. In the beginning the potential pulls them in and then later they want to exit the nightmare.