Buy/Rezone/Divide Raw Land - Suggested Reading and Guidance

[Michael Spindler]

Hi BP,

Regarding raw land - zoned AG. Does anyone on this site have experience with buying, rezoning and dividing land for residential SFRs/MFRs (2-4)?

Before buying, is it wise to speak with a lawyer specializing in local zoning laws? And to evaluate the property first?

Can anyone recommend a book(s) specific to this type of investing? Would you be willing to share your process, system, or other outlined formula that you follow?

Projects this large would require OPM. Would any book on writing a proposal/business plan work? And if so at what stage of the process? i.e. Do I hire and pay the lawyer, as to feasibility and a summary or other report to market to other investors? Or do I need to secure the property first with a contingency and then the mad dash to pull everything together?

In addition to dividing, do you need to put in the infrastructure, before you can sell to a builder? i.e. roads, sewer, water mains, etc...

I appreciate any information and direction you can provide.

Best wishes.

Michael

[Karen Margrave]

Michael Spindler I cannot imagine an area of the country where in this market, there is a high enough demand for housing that rezoning AG land would be feasible. IF you are in such an area, you will need to check with your local planning department in regard to the process. Every municipality is different.

Also, aside from the local regulations, you can go on to your states real estate department website, and look up subdivisions. There is a host of criteria for submitting for approval.

Once everything has been done and submitted to the State and approved, then either you as a developer can put in utilities, streets, curb, gutter and sidewalk and sell finished lots to a builder, or you can sell the approved subdivision to a builder, and they will do all of that.

It's a very long, complicated process. If you have never done it it's not something to cut your teeth on.