Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Land & New Construction
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 5 years ago on . Most recent reply

User Stats

6
Posts
2
Votes
Matthew Clanton
  • Lender
  • Charlotte, NC
2
Votes |
6
Posts

Opportunity to purchase land, but no idea how to start developing

Matthew Clanton
  • Lender
  • Charlotte, NC
Posted

Hi all, and thank you in advance for the great information that will be provided.

I have the opportunity to purchase 7 acres off of a busy highway in NC for a very low price. (Zoned residential) In a perfect world, I would like to subdivide and place 4-5 SFH's on the land.

The homes on the road are on septic and have wells. Any help on how to start would be greatly appreciated. I’d like to use hard/private money to fund the deal, but have no idea how to structure it, or what all I need to consider beyond surveyors, contractors and well drillers.

Do you work this like a cash-out refi once complete?

Most Popular Reply

Account Closed
  • Investor
  • Northern MN & WI
64
Votes |
55
Posts
Account Closed
  • Investor
  • Northern MN & WI
Replied

Hi @Matthew Clanton, I am working on a 13-acre subdivide in rural Minnesota right now. This is my first, but I'll just share what I have done so far. I've checked with the county to verify zoning and setback requirements. This zoning district requires a minimum of 1-acre and 150' wide lots and has 100' setback from the riverfront. Based on the width of the property, I can create five lots each about 2.75 acres and 156' wide. I could request a variance to further reduce the size, but I am actually really happy with these dimensions. There is a cabin shell existing on the property that will fit perfectly on lot 2. It already has a well, electricity, and water. So, my plan is to list lots 3,4, and 5 for sale immediately and simultaneously rehab the cabin. Once I have a better idea of each parcel's value, I'll sell the final lot. It will be a little less desirable as there is a neighbor's easement going through it. 

While I was preparing for this deal, I looked for resources on development and subdividing. The only thing I could really find was civil engineering textbook and I didn't want to pay a $150 for it. I found a book on Amazon, "The Land Flipper." It reviewed really well, but was pretty basic. I am a slow reader and I read it in about a day and half picking up a couple of good tips along the way. 

My biggest concern right now is trying to figure out how much a private road will cost. None of the parcels have road frontage, but instead the main parcel is accessed through an easement transiting through state land. So I need to build a private road about 750' in length along the backside of the property. This is a rural property and I know that not all roads are created equal. Not tying to hijack your thread, Matt, but I'm wondering if @Greg Dickerson could offer some thoughts on rural private gravel roads. Thanks. 

Loading replies...