Land Development

[Daniel Harnsberger]

Need some advice from the BP family.

I have a seller who has a property that sits on 2.6 acres of land.  Land has the following features:

-has been perk tested

-seller owns easements that will allow sewer lines to be extended to new construction 

-land- when subdivided- will allow for new construction of minimum of 9 properties

Problem- seller needs us to close in 6 weeks. County takes 30 days to review, then another 30 days to review any changes that they request our surveyor to make. All this after the time and $ needed for a surveyor to do a topography survey, draw up plans, etc.

In short, I recognize the due diligence needed in a deal like this. However, the seller has to move in 6 weeks time and needs the money to close on a new house (job transfer). Is there way to satisfy both aspects of this scenario?

Please advise and thank you.

[J Scott]

Do just enough due diligence to ensure that you'll be able to build what you want to build, but don't actually spend the time getting final plans.  Based on the information you get, figure out a worst case scenario, and make an offer based on numbers that work for that scenario.