OT: Buying and Subdividing land

[UpTheMiddlex3Punt]

Anyone here ever bought a tract of land but only wanted to build on part of it? I want to subdivide it into lots of about 0.6 acres and will have to build a road through the middle of it, put in electrical, water, and sewer. I'd sell off the rest of the lots and keep one or two for myself.

Anyone ever done this? How much would it run me besides purchasing the land? Major pitfalls? Talk me out of it if I'm crazy to even think about it, but I hope it's doable without being too intensive.

 

[Jeffreauxdawg]

Anyone here ever bought a tract of land but only wanted to build on part of it? I want to subdivide it into lots of about 0.6 acres and will have to build a road through the middle of it, put in electrical, water, and sewer. I'd sell off the rest of the lots and keep one or two for myself.

Anyone ever done this? How much would it run me besides purchasing the land? Major pitfalls? Talk me out of it if I'm crazy to even think about it, but I hope it's doable without being too intensive.

Buddy of mine did it in North MS a few years ago and halfway through a build it got shut down for like a year and a half because of title work issues. The law firm he paid to do the title work said sorry, sue us if you want. I'm sure there is more to the story, but I know he was ready to murder his attorney. I can't remember the details, but he had to collect signatures from all the surrounding landowners.. it was a mess.

I'm sure some of the legal experts will have better advice, but make sure the title work is tits or your project will go tits up.

 

[jethreauxdawg]

If it’s in a city, it won’t happen quickly and will cost more than it should

 

[JesterB]

My dad’s Sunday school class bought a half section in 1980. They deposited a lot of money into the strongest buyer’s account and let it mature a few months. He then got a loan, bought the land and subdivided the neighborhood off of predetermined lot lines that my father had surveyed. Dad said it was the longest 2 months of his life and had “friends” from south Louisiana on the ready had things gone sideways. Thank goodness, It worked out perfectly and I grew up in a perfect country setting. They built in 1981 and are still living there but will soon move. Please read that this was 1980 and Savings and Loans were a commonplace. No way you can pull that off now.

 

[CoastTrash]

Capital intensive project. High risk. Will have to get subdivision plat approved by city or county as applicable. Performance bond like required to ensure you complete developer improvements according to government requirements (they take ownership upon dedication). If it’s in a good area it can be lucrative but you need to have time and money on your side of the market sours. I’m available for hire to help. Ha.

 

[Shmuley]

What county? Is the property inside or outside municipal boundary?

 

[aTotal360]

Don't do anything until you have a willing and able buyer unless you want every tom, dick and harry walking around your lot.

 

[GloryDawg]

That's being done all over the outskirts of Brandon on the East side.

 

[UpTheMiddlex3Punt]

Madison, Madison County, Alabama

 

[maroonmadman]

Have enough money stashed back to pay taxes on the land for several years. If the lots don't sell right away you (or your company) will be responsible for property taxes on the unsold land.

Here in my neighborhood we have curbs, gutters and sidewalks on both sides of the street. Sidewalks were added as houses were built and were the responsibility of the contractor building the house so the developer put some of that cost off on each individual house being built. One way to shave cost.

Don't whack all the trees. Plan out your lots and try to save a few trees per lot. The development across the road from us was once a very pretty mostly pine forest. The developer whacked every tree and has since been bringing in truckloads of dirt to build the area up approx. 3 feet. I'm sure all this isn't cheap. I'm also sure I wouldn't build a house there, probably will need foundation work there in a few years.

 

[thatsbaseball]

Might want to keep an eye on this

[FONT=&quot]The HOME Act would give a refundable tax credit to people who spend more than 30% of their income on rent. It also would require inclusionary zoning—a requirement that developers set aside a percentage of units that would be rented or sold at reduced prices—which would help increase affordable housing construction while also knocking out housing discrimination based on race and income.

I'm guessing you can get around it but I'd do my homework up front.[/FONT]

 

[UpTheMiddlex3Punt]

The HOME Act would give a refundable tax credit to people who spend more than 30% of their income on rent. It also would require inclusionary zoning—a requirement that developers set aside a percentage of units that would be rented or sold at reduced prices—which would help increase affordable housing construction while also knocking out housing discrimination based on race and income.

I'm guessing you can get around it but I'd do my homework up front.

If I sold empty lots, would I be exposed to this?

The more I think about the government and zoning board in my city the more I think they would try to screw me over. They seem to bend over backwards to help the large developers. The lot sizes keep getting smaller and they have the nerve to complain that there are too many kids coming into too few schools.

 

[thatsbaseball]

I have no idea but again I'd do my homework. Also sometimes developing lots under a certain size can require that the developer put in curb and gutter in some areas. That gets really expensive....more homework.

 

[WilCoDawg]

It’s so great that the government gets into the business of telling people who can and can’t live in an area.***

 

[jdbulldog]

Utilities = major money, especially sewer

That in itself can break you.