You've heard of the general plan and the zoning code, but have you heard of something called a specific plan?
The zoning code in essence is a set of rules that implements the goals and objectives of the general plan. Similarly, a specific plan implements the goals and objectives of the general plan but instead of it applying to the whole jurisdiction, it applies to a specific geographic area within the jurisdiction. Typically, they are created for commercial corridors that have lost a significant amount of vitality and economic viability. These plans create opportunities for developers that don't exist elsewhere in the jurisdiction. That means there's opportunities for investors to capitalize once they have the knowledge in hand. Next time you're looking at a Planning website or on the phone with a planner, ask if there are any specific plans for portions of their community. You may be surprised what you find.
Entitle and Flip in Action: Once an underutilized vacant lot. Now a boutique hotel. This isn't where you start...but this could be where you go!
Entitle and Flip in action: Underutilized property once had multiple auto service uses and now...a multiuse development with commercial retail on the first floor and residential up above. This isn't where you start...but this could be where you go!
Sometimes you don't need a subdivision to accomplish your goals. A Lot Line Adjustment is the process that is used to change property lines of existing parcels. The process can be used to do a number of things, such as: combine up to specific number of adjacent parcels into one (1) parcel, alter the boundary between parcels, or reconfigure the shapes of parcels. The City or County will have a limit to the number of lots that can be included in a Lot Line Adjustment (typically four), however in all cases, the resulting map cannot result in more lots than what was originally there. So, you could go from 4 lots to 4 lots or 4 lots to 2 lots, but you couldn't go from 4 lots to 5 lots for example. Lot Line Adjustments are useful when settling boundary line disputes or a tool that can be used in lieu of easements. The final resulting map will create new lot lines. It's important to note that Lot Line Adjustments can only be done with lots that were legally platted or subdivided. But that's a story for another day.
Not all subdivisions are the same. Although subdivision regulations differ by jurisdiction, here are three common types of subdivisions.
Land divisions that are exempt from local platting requirements. These are the cheapest and fastest types of subdivisions. But not all parcels of land qualify. These subdivisions typically do not include the construction of roads and other improvements.
These types of subdivisions must comply with local zoning regulations and are typically limited to a small number of lots, such as the creation of no more than four lots. The process for this type of subdivision is often administrative or is limited in comparison to the process for major subdivisions. These types of subdivisions may include roadways and the extension of utilities.
As the name implies, these types of subdivisions typically include a significant number of lots and include streets and other improvements typically associated with larger residential subdivisions. These subdivisions may include parks, schools, fire stations and other amenities. As you would imagine, the process for these types of projects may be long and complex.
Check out our "Subdivide and Conquer" online course. This course is currently on sale!
In this course, you will learn....
As land investors, we are familiar with the concept of subdividing as a way to add value to property. But what would happen if we did the reverse of a subdivision? This is a process known as assemblage. Just as the name implies, assemblage is when instead of separating land into smaller lots, you are bringing together, or assembling smaller lots into larger lots. This is a process best used when you have a particular buyer in mind that has plans for a future development. An example would be if you were to pick up three single-family residentially zoned lots, bring them together through an assemblage process, rezone the property for multifamily, and then either sell it to the developer or get the multifamily project entitled and sell the fully entitled project to a developer. You may not come across these opportunities often, but I bet you'll look at vacant single-family lots a bit differently now!
See our upcoming December newsletter where we discuss assemblages in more detail.
Learn more about the Entitle and Flip Monthly Newsletter here.
Hey....take a look at our latest acquisition. Just a small little development side in a rough part of town but I think it has real potential! Alright....so this one is a bit out of my reach at this point. That's ok....we all need goals right!
The real reason I'm sharing this is to demonstrate that it's a well-known fact that entitlements add value. The broker is even highlighting the fact in their promotional material. The existing owner has taken the same concept we talk about to the extreme and entitled this resort site on Kuai and is now looking to sell the property. Not a bad Entitle and Flip style project!
We're so thankful to offer next-level education and services to help inform and advise investors in ways to build their businesses through forced appreciation. To show our appreciation, we are offering a Thanksgiving sale. The sale starts today and goes through November 30, 2021. See the graphic below for details. We've so enjoyed getting to speak and work with many of you and are excited to see what 2022 brings for us all!
Oooooh, what's that?? I think that used to be what they call an "underutilized property", rare in some cases but quite valuable!
People often ask me what an underutilized property is. I don't know that there is a specific definition that applies industry-wide, but the way that I define it is this; an underutilized property is a property that is not meeting its highest and best use based on its current zoning.
In the picture below, this was originally a residential neighborhood that, over time, saw demand for commercial uses. So, the city rezones the property along the corridor to commercial. In doing so, they created a situation where the residential uses were grandfathered in and future commercial uses would be allowed subject to specific development standards. In this case, office uses, such as real estate offices, insurance offices, etc. were allowed to locate within these buildings. This is a very relatable example but it happens at all different scales. Imagine if these structures weren't so attractive and they begged to be redeveloped. What if you were able to locate these opportunities and profit from them?
If this kind of next-level investing interests you, I ask that you take a couple of minutes and take a look at what we have to offer. We have a new Done For You service and separate coaching program that you may find helpful as you grow your business.
Often I get calls that go something like this (dramatized for cinematic effect):
I have a buyer that wants to buy my property, but only if he can build a roller coaster instead of a house.
The investor rationalizes that since the neighbor has a car in the driveway that the proposed roller coaster should be approved by the county because the roller coaster has a box-like object on it with wheels and makes a loud noise just like the shiny car in the driveway.
It doesn't quite work that way. Luckily, there are a handful of simple things that you can do to prevent this tragic event from happening in the future.
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Our purpose is to inform and advise investors through next level education and services so they can distinguish themselves in their market.