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Updated almost 8 years ago,
Dilemma ~ Want to start biz now but land partition 6+ mo out
Here's my dilemma.. I've found a goldmine location, 230ft frontage right at intersection of 2 high-traffic state highways. The area I want is about 2 acres in size (blue line in pic), it's vacant, zoned commercial, city services, however, it's really a 5.6 acre lot on which sits the hotel directly to the south, as seen in the pic below. I've contacted the hotel owner, they like my offer of $130K and they want to talk. I want to install 20 or so RV Spaces, 60 or so self-storage units and a drive thru food / coffee stand. City says this all sounds good but the problem is I want to start my project NOW but it will take 6+ months to divide the current 5.6 acre lot before I can officially purchase the 2 acres I'm going after. So question is, is there any safe agreement agreement I could propose to the current owner so that I could 'safely' start my project now, ie. lease or rent to own, or land contract that would allow me to start project now and then officially purchase my lot once land partition is approved 6+ months from now? Should I be asking the current owner for this anyway to free up my capital for construction? Or, is it too risky to build before owning the dirt?
I do have an alternative site (below)... it's 3.8 acres Commercial zone for $110K, 1/2 mile away from the other property, no land partition required, ready to buy, ready to build, it too is on a state highway but it's 1/2 mile from that goldmine intersection, it needs trees cleared and I'd have to extend the city water & sewer a couple hundred feet. So, just thinking out loud here... can I build on the 2 acres prior to purchase? Which prop is a better deal? Do I really need the high visibility for RV Park / Mini Storage? Should I just buy the 3.82 acres that's ready to go? Or is the high visibility of the 2 acres worth waiting for?? Needless to say, I'm new to this. Any advice is appreciated.