The Real Estate Development Business - ask/say anything

[Scott Choppin]

Hi Everyone: 

I was thinking to open up a space for an "anything goes" thread, where the topic is real estate development and development deal making. It could be anything: questions, war stories, best deal, worst deal, advice on careers in RED, even general complaining  and/or praise about anything to do with RED.

Anything goes.....

Scott

[Scott Choppin]

Hi Jon Klaus

Let's see, List in no particular order:

Flat site, no terrain. Avoiding major grading.

City political structure that is conducive to reasonable subdivision map timing and conditions of approval.

Market conditions that provide sufficient demand for lot sales and/or home sales to support the lot sales.

No environmental issues, or toxic soils

No biological issues such as endangered birds, bees, butterflies, salamanders, lizards, owls, or anything else that may be or could someday become endangered.

No wetlands

No blue line streams, or any involvement from the Army Corps of Engineers.

No major flood control or drainage requirements. It's getting harder to avoid these days, but reduced detention/retention infrastructure if it all possible.

Good marketing window, visibility from local or major roads, or freeways that drive demand for lot and home sales. Said another way, not too hidden or hard to find. Said another way, in the path of growth.

Reduced or low competition from local homebuilders or major national homebuilders.

Neighbors who are open to development adjacent to their neighborhood.

Good road access.

I don't know if I have it anymore, but I used to have a checklist that was put together by a company called Lewis Homes here in Southern California.

I kid you not, it was something like 50 pages, and it had every conceivable scenario that the project manager would have to fact check in order to get the deal approved at Land Committee.

One of the questions was: is the site next to a dairy? In the location where this company built homes, there were a lot of dairies, cows and dairies can be pretty smelly. Not a place you want to build homes.

Scott