Check out the latest episode of the Dirty Real Estate Show. We take a different approach by focusing on unique ways to add value to your land investment. Sometimes it's simple onsite improvements and sometimes it more discreet or subtle approaches to adding value. Either way, we are sure that you'll get something out of it. Give it a chance and let us know what you think.
Episode 14
0 Comments
As we know, lining up a builder/buyer before entitlements are approved is an ideal way forward. However, sometimes investors have trouble locating builders to work with.
One creative tip is to contact the local building department and request copies of the latest building permit applications. Those applications will have the contact information of active builders in your market. Use that information to start your outreach efforts. These are the kinds of tips we share with our coaching members to help them get the upper hand in their market. In the meantime, check out this list of builders that are active not only in California, but throughout much of the country as well. List of Builders When entitling a property, it's imperative to understand the value of that entitlement so you can properly analyze the opportunity. Unfortunately there is no set in stone rule, but here's my attempt at it. Feel free to ask questions or poke holes in it. Hoping that this prompts some thoughtful comments.
Entitlement Value= Residual Land Value (RLV) - Comparable Land Value (CLV). Hint: First question should be.....how do you determine RLV. I talked to an investor friend on Friday. He recently purchased a commercial lot and went through the entitlement process for a self-storage facility. He was all in at $1.5M. He immediately got an offer for $9M once the entitlements were approved. Crazy enough, he turned down the offer! Here's why....
He figured out that he could build the facility himself and be all in at $20M and then sell it turn key to a national operator for $45M. So when do you turn down a $7.5M payday?......when you have a $25M payday right down the road! A bit of Monday morning motivation for you! Have a great week everyone. Not enough roadway frontage for your subdivision?
Here’s a possible solution. Flag lots are essentially a parcel of land situated at the back of a long access strip as shown below. If the jurisdiction allows for it, this can be a creative way to maximize the number of lots! State By State Platting Exception List
We all know that subdividing a property is an excellent way to force appreciation on a piece of land. But did you know that not all subdivisions are the same? When we think of subdivisions, we tend to think of infrastructure like roads and utilities or community amenities like parks and pools. But there's another type of subdivision, one that lets you fly under the radar. This type of subdivision allows you to sidestep engineers, public hearings, and lengthy review processes. Not every state allows for these types of subdivisions, and those that do have different sets of qualifying criteria. Until now, the challenge has been knowing which states have what are called exceptions to the platting rule and which ones don't. Even more challenging is understanding the qualifying criteria for each of these states. We've solved that problem for you by conducting an extensive research effort to answer these exact questions saving you a massive amount of time and frustration trying to figure it all out on your own. This type of information is typically reserved for our coaching group, but now we are making it available to the land investor community as a whole. The State by State Platting Exception List is a complete rundown of all 50 states identifying which states have these exceptions and even better, the qualifying criteria for each! This is a massive value for an investor that wants to get into the world of forced appreciation through subdivisions. To purchase, visit: Consulting/Resources Incentive zoning allows for a developer to build a larger, higher density residential project than what would otherwise be allowed under the current zoning. To get this benefit, developers must provide a community benefit such as open space, parks, etc. While this may not be as applicable to rural land, the takeaway is that there are incentives that existing within many zoning codes and if you take the time, you never know what you may find.
When we think of zoning, we tend to think of what is called Functional Zoning. But there are other types of zoning that you may run into, especially as you get into more urbanized areas. You may think that zoning complicates matters, and in some cases it does. But if you learn how to navigate the landscape, there are plenty of opportunities that others just don't see. If you want to be one of those that see what others don't, you should set up a 15 minute call so we can talk about how what we offer can fit in with your existing business.
FREE 15-Minute Call |
Who are we?Our purpose is to inform and advise investors through next level education and services so they can distinguish themselves in their market. Archives
February 2023
Categories
All
|