How to prepare a large piece of land for subdivision

[Amanda Paugas]

Hi BP community! I am looking to acquire a very large parcel of land, approx 100 acres. It is currently zoned as R-3 and I'm thinking of subdividing into 50, 2 acre lots for SFR's. Wondering what experiences others have had has far as selling lots to builders and what I might need to do ahead of time? (Sewer access, water lines, pave a roadway etc) I'm assuming I'll be going to the town as well for permits and approvals, any other steps there I should take to make this happen? Thanks!

[Jay Hinrichs]

it would be rare in the extreme that you would run  a  sewer system though what your describing those would be septics.

AS well it could easily be well and septic.. 

as others have said you need to back into it.. whats a 2 acre parcel that is buildable worth..  given that you also have to add septic system and maybe a well. 

give U an idea I am developing 30 lots in Oregon right NOW.. moving dirt.. and my cost are for full blown sewer water storm paved roads ADA ramps street lights franchise utls ext ext right at about 60k per lot..  not including the price of the dirt.. my lots are worth 140k each when I do all this I paid 50k a lot ra.. so the delta is 40k per lot and then I build the homes and make another 60k per lot on the vertical.. this is phase one of 3 phases 89 lots in total.. we paid cash 5.2 million for it. then got bank loans for the horizontal and will get bank for the vertical.. this will require about 40 million in debt and make us about 10 million net over 2.5 years.. that's how U back into development. 

Now the other aspect is zoning and approvals like others above are talking about.. you start by walking into your county if its county. or City if its city and talking to the planning department start there. then move backwards on the above.

development is a big money endeavor with tons of risk.  but tons of reward if you hit it right and have access to lots of capital.