Land Developers that build custom homes.

[Charles Scott]

Are there any Land Developers on here?? I have a few questions about getting started in the business.

[Canesha Edwards]

@Charles Scott

Hey Charles. As someone who is currently developing their first ground up project....here’s my advice.

My first attempt at development in 2017 was a failure! I lost $30k. How did this happen? I was uneducated and trusted control of the project to someone else. Don’t be like me.

However- you do not need a mentor? No. This is what I thought and wasted a lot of time trying to find someone to show me the ropes, Before I actually took steps to start on my current project. So, here’s what you need to do.

1. Get educated. Pick a market and learn everything possible. Does the city welcome develop? What current projects are going on? Read the comprehension plan. What does the community want/need?

Is population increasing or decreasing? Wages? Are jobs being created or are companies leaving the area?

Then study the technicals. Zoning ordinances, land use designations, etc. You can typically find all of a city’s development information online. I even read through project denials and the reasoning behind the denial.

Call your city planner and have a conversation. This is the best way to get direct information. I typically use a property I’m considering buying and ask questions around what I would like to develop.

Ex. I’m considering buying 123 ABC St to develop 50units. I believe this falls within the current zoning. Can you confirm? Are there any overlays or restrictions I should be aware of?

2. Talk to lenders early. Even if you don’t have a deal. Build relationships. Find out if the bank has an appetite for this sort of thing. What are their terms? This will help you gauge your financial situation. Don’t get in over you head trying to develop outside of your financial range. Development is expensive and some times have high upfront cost. Make sure you have enough saved to at least cover your soft cost ( plans, permits, engineering fees, survey, etc).

3. Hire Experienced Professionals. This is important, especially starting out. Spend time and actually interview your team before hiring.

Let me clarify that development is by no means easy or a simple task. But I am a firm believer that you can accomplish anything you truly set your mind to. With or without the help of others.

Take the time to really learn the craft of development and you will be fine. Knowledge is key.

I hope this helps to get you started in the right direction. Reach out any time, always happy to help.

Best,

Canesha