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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!  
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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.  Would you buy this? Let's play a little game. Using the information in the aerial and the other information provided, your job is to tell me if you would buy this property or not and the reasons for your decision. Then I will give you some things to think about once you've had a chance to chime in. Something to think about before you go on.....is there such a thing as junk property? Here's today's property 1.17 Acres Zoned UR2 Allowed Land Uses: Single Family Residential Area Comps: For sales comps ranging from $35k to $45k for similar sized lots Sales Velocity: Last sale in March of 2019. 15 of the 50 lots within a 1/4 mile are for sale Asking Price: $25  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. https://www.tolosapropertygroup.com/done-for-you-forced-appreciation  We are excited to offer our Done For You Forced Appreciation Service. This is a service that we offer to land investors to help them force the appreciation of their property without ever having to touch it. This service is for land investors who understand the value of forced appreciation and the role that entitlements can play in that process, but are either too busy or are not inclined to want to go through the required process themselves. Examples of such projects include minor and major subdivisions, site plan approvals, conditional use permits, zone changes and many more. Our team will evaluate your property for any and all forced appreciation opportunities and then in consultation with the investor, determine the best course of action. We will then work as the day to day face of the project on the behalf of the investor coordinating all efforts with any required professional service providers such as land surveyors, civil engineers and architects as well as county and city staff. We will be there from beginning to end to ensure the ultimate success of your project. For more information visit here or contact Mike at mike@tolosapropertygroup.com.   |
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