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Updated 4 months ago, 08/05/2024
Next Steps for Newbie Developer
Hi everyone. So like the majority of investors right now, it has hard for me to find cash flowing rentals due to appreciation + high interest rates. Therefore, my wife and I have decided to simply build our own properties to rent or sell. I've found a lot that fits our needs, but now I need to "walk the land". The question for the BP community is: what should I look for when I visit the site?
Also, I would gladly compensate more experienced developers to visit the site with me for input. Thanks in advance for any feedback.
Quote from @Charles Burgess:
Hi everyone. So like the majority of investors right now, it has hard for me to find cash flowing rentals due to appreciation + high interest rates. Therefore, my wife and I have decided to simply build our own properties to rent or sell. I've found a lot that fits our needs, but now I need to "walk the land". The question for the BP community is: what should I look for when I visit the site?
Also, I would gladly compensate more experienced developers to visit the site with me for input. Thanks in advance for any feedback.
@Charles Burgess look into Toddco Builders based in Concord NC. The GC there may be able to shed some light on what you're looking to do.
@Charles Burgess To be honest with you, the chances of you buying a lot and building on it for less than the cost of buying an existing property are pretty low. Just as properties have appreciated quite a bit in the last few years, construction costs have increased quite a bit along with land prices. If you do decide to build, I would work closely with your builder while you're still in the due diligence phase of your land contract and make sure the numbers pencil before closing.
As far as the land itself goes utilities are most likely going to be your biggest due diligence item. Is there power to the lot, is there public water or will you need to drill a well, if there is public water/sewer do you need to pay the tap fees, etc. Also keep an eye out for floodplain and make sure the zoning of the lot allows what it is that you're trying to build. Best of luck!
@Charles Burgess Welcome to BP! I second all of @Cooper Raines comments. Is the land in Charlotte NC?
Welcome to BP. If you are looking in Charlotte, that is going to be a tough one to pull off. I have seen a lot of construction in the adjacent counties though. Land prices are much lower and there is still meat on the bone. I would try that if I was looking to get into development.
I would speak to an architect and permit department to see if its buildable
- Jacob Sherman
- [email protected]
- 267-516-0896
Very hard to have a quick answer for what should I look for. Kinda like car shopping and you know nothing about how an engine works but open the hood anyway to look at the engine.
big ticket items
- sewer. If no sewer connection, will the land perc for septic. Is there enough room to install drain field for septic.
- type of lot. Sloped, flat, rocky? All this will change the building envelope and type of structure you put there.
Keep this in mind. Infill lots in established communities usually have a reason tied to them why they haven’t been built on yet. A huge headache is just because land is for sale doesn’t mean you can put a house on it. Could be a storm drainage on it the lot, easements, creek, river flood plain etc.
Sharing the scale of what you are planning can make a big difference on the answers too.. are you talking about a single family house or 2, duplexes, small multifamily, or larger? Each has its own issues. Zoning is an important first set to to look at to make sure your vision is actually allowed on the land. Then you can start digging into utilities/etc that might be large hidden costs many don't realize are needed.
As others have stated, new ground up construction is a different animal then renos/etc. Value add renovations might be the best means to start to get the experience to transition to new construction. Relying totally on your GC for everything can leave one in a tough position.
In order to begin the process of looking at a lot in terms of potential development, it’s important to first keep in mind that a number things must be considered. They are zoning and land use regulations, accessibility, environmental factors, market analysis, topography and terrain, utilities and services, neighbourhood characteristics, restrictions and opportunities, development feasibility, financial analysis etcetera. It is important that the designed purpose of the property is congruent with the rules and regulations established by the local authority in order to ensure its successful use as well as to avoid any possible inconvenience due to lack of compliance. Look at the topography and terrain to determine how.
Evaluate fundamental infrastructure and service availability, as well as expose examples like wetlands and flood zones, protected lands, hazardous chemicals etc. Study the neighborhood in terms of market dynamics to know if a lot can meet market demands or if it is worth investing in before deciding on its purchase Consult some experts who have found ways of developing vacant areas so that you may decide intelligently on what you want to do with your own piece of land.
Good luck!
- Wale Lawal
- [email protected]
- (832) 776-9582
- Podcast Guest on Show #469
Hey Charles! I'm a local realtor and builder. Walking the land comes AFTER making sure the land is buildable. You need to check for setbacks, frontage, lot size, elevations, and flood zones. Once you have gone through the UDO and made sure the land is buildable. You will then go to visit the site and see that there is anything you could have missed like debris on the site. I have lost a couple of good deals because they used the land as a construction debris dump and now the land can not be built on. When you walk the lot also keep in mind where the water comes and goes through.
I don't think is impossible to find buildable land in Charlotte and surrounding areas. As a matter fact, good deals go live everyday and sell within 48 hours. It's doable you just need to know exactly what you are looking for and jump at the opportunity when it comes. Also you need a good GC that has competitive pricing and that has actually built homes before.
- Angie Castro
- [email protected]
- 704-318-5494
Quote from @Chris Bonner:
Sharing the scale of what you are planning can make a big difference on the answers too.. are you talking about a single family house or 2, duplexes, small multifamily, or larger? Each has its own issues. Zoning is an important first set to to look at to make sure your vision is actually allowed on the land. Then you can start digging into utilities/etc that might be large hidden costs many don't realize are needed.
As others have stated, new ground up construction is a different animal then renos/etc. Value add renovations might be the best means to start to get the experience to transition to new construction. Relying totally on your GC for everything can leave one in a tough position.
I agree, I think design build firms are a little better than just GC
- Robert Ellis
Quote from @Charles Burgess:
Hi everyone. So like the majority of investors right now, it has hard for me to find cash flowing rentals due to appreciation + high interest rates. Therefore, my wife and I have decided to simply build our own properties to rent or sell. I've found a lot that fits our needs, but now I need to "walk the land". The question for the BP community is: what should I look for when I visit the site?
Also, I would gladly compensate more experienced developers to visit the site with me for input. Thanks in advance for any feedback.
Here are a few pointers when looking at land:
-FEMA Maps: Is the property in a flood zone?
-Does the seller/agent of the
-Has the land been built on before?
-City water, City Sewer? Tap? If not, that starts the septic tank conversations.
-Access to streets? Hopefully not land locked!
-Cleared of trees?
-What's the topography like, does it need leveling?
-Any easements?
-How many owners of the land?
-What is the density? Meaning, how many structures can you build on this land per county regulations?
I have a client who is also looking for land in the Charlotte area. Thus, if you have anything that you come across that isn't a fit, we'd love to take a look as well.
Cheers!
If you could find a local land planner, architect or engineer, they (we) review most of the "walk the site" issues from our desk for clients in the acquisition and project planning phase. Local municipalities and states have GIS data online that reveals much of how a property will be developed, even streams can be estimated (nothing like a photo of running water tho). A builder may not know all of the overlapping aspects that affect the build and design - setbacks and buffers for example.
Quote from @Joan Piccalo:
If you could find a local land planner, architect or engineer, they (we) review most of the "walk the site" issues from our desk for clients in the acquisition and project planning phase. Local municipalities and states have GIS data online that reveals much of how a property will be developed, even streams can be estimated (nothing like a photo of running water tho). A builder may not know all of the overlapping aspects that affect the build and design - setbacks and buffers for example.
Thanks, this was very beneficial. And also can save a lot of time!
@Charles Burgess good job trying to jump into development, and doing some homework prior to that. BP forums is an amazing source to get guidance from where to start. A lot of great recommendations from everyone. I would suggest checking with your local building department as one of the first steps to determine if they would even allow anything to be built there. That would save you time from going deeper into due diligence on that particular lot. Once everything checks out i would also suggest checking with builders risk and homeowner insurance that they will be able to write a policy during construction and after.