Land: Due Diligence

[Jonathan Makovsky]

There is a piece of land with a knock-down house that we will be going under contract on and I wanted to know what experienced land investors can recommend for due diligence?

Thanks in advance.

[Gilbert Dominguez]

heheheheheh:) The way you pose your question is like asking someone to analyze the night sky for you. 

First does the land already come with soil analysis?, a recent soils report? 

Next does the seller have preapproved building plans? That would indicate that a soils report exist, the architect has designed an approved structure to be built and that a structural engineer has already provided structural calculations for that building. 

If you have none of these things you will start from scratch. 

Have you inquired any from your local building department civil engineering section?

Are there visible signs of electricity at the site?

Is there an existing water main to the old house?

Did you see a gas meter anywhere?

Do you know if the old house was on a septic system, is there a water pump anywhere on the grounds?

How about any roads. Is there a paved drive way or only a dirt road leading to the existing house?

before you simply start deciding you are going to tear down the existing house. Have you examined the condition of the existing foundation?

Have you thought about doing a remodel vs all new construction?

The difference between getting a remodel permit and an all new construction permit can be significant in cost and a remodel permit can be obtained between 30 days and 90 days on the average whereas a new construction permit will both cost more and take up to 2 years, maybe. 

Is the existing foundation in good shape and can it be incorporated into your new project?

Have you checked to see if there are any existing easements on the land?

If there happens to be an existing water main what size it is and will it be adequate for the needs of your planned, thought of or desired structure or will there be a need to upgrade it's size?

Give me, give me , give me , I need allot more information than what you are providing, tell me everything you know up to know. 

Do you know in what direction you are going to have the house situated on the land, What is the wind strength at the location of the proposed structure?

How many inches of rain does the location get per year?

need more, need more, need more, give me more to work with here.