Buying Land w/ Friends to then Subdivide and Build Homes?

Orange County, NY · Member since 2021 · 47 posts · 21 votes

Morning Everyone:

I have been discussing with some very close family friends the idea of purchasing land together, subdividing the land, and then each building our own homes. Does anyone have experience doing something like this? I was not sure how financing would work in this situation. Any information and advice would be greatly appreciated. These are people I trust and know extremely well. Obviously nothing is guaranteed in life so what can be put in place to protect all parties involved so everything is fair.

Thank you so much and I look forward to hearing from you all!

- Adam G.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
generally speaking this would need to be done with either seller financing with release clauses or all cash .Major issues are going to be zoning and what can be done.. target props you like get feedback then go to the city or county whoever is the controlling agency and ask to talk to a planner this can usually be done over the counter will give you a quick look at what can and cannot be done.
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
3y
Quote from @Adam Gonzalez:

Morning Everyone:
I have been discussing with some very close family friends the idea of purchasing land together, subdividing the land, and then each building our own homes. Does anyone have experience doing something like this? I was not sure how financing would work in this situation. Any information and advice would be greatly appreciated. These are people I trust and know extremely well. Obviously nothing is guaranteed in life so what can be put in place to protect all parties involved so everything is fair.
Thank you so much and I look forward to hearing from you all!
- Adam G.

Building your own homes for what purpose - resale? To live in yourselves? Create your own commune?

If this is something you're talking about doing for profit, I wouldn't. Better idea is create an LLC which you are all part of, buy the land cooperatively and develop it cooperatively. If this is something where you'll all live in the same neighborhood, it could work as everyone could build what they wanted on their own timeline.
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Adam Gonzalez
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Orange County, NY · Member since 2021 · 47 posts · 21 votes
3y
Quote from @JD Martin:

Quote from @Adam Gonzalez:

Morning Everyone:
I have been discussing with some very close family friends the idea of purchasing land together, subdividing the land, and then each building our own homes. Does anyone have experience doing something like this? I was not sure how financing would work in this situation. Any information and advice would be greatly appreciated. These are people I trust and know extremely well. Obviously nothing is guaranteed in life so what can be put in place to protect all parties involved so everything is fair.
Thank you so much and I look forward to hearing from you all!
- Adam G.

Building your own homes for what purpose - resale? To live in yourselves? Create your own commune?

If this is something you're talking about doing for profit, I wouldn't. Better idea is create an LLC which you are all part of, buy the land cooperatively and develop it cooperatively. If this is something where you'll all live in the same neighborhood, it could work as everyone could build what they wanted on their own timeline.

The primary purpose would be to build our own homes to reside in.
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