Start Right With Your Residential Land Development

houses inside subdivision

Real estate investing is simple from the outside. You mostly buy the property and wait for it to increase value, then sell it off. But you can reduce the wait by taking steps to develop your property. Large ones can be turned into subdivisions so that you can sell off the property by lots. Here are some pointers on how you can ensure that you develop it right.

Do a Feasibility Study

Before you even break ground on your subdivision development, you have to sit down and decide whether it will be worth it. It should be a simple examination of the current market prices. It will reveal how much you can expect to sell a subdivision house and lot in the area of your property. You then estimate your possible expenses and see whether you can make a profit.

Plan Things Out

If your study shows that you can profit from your development, you should then start planning. When it comes to subdivisions, that will usually involve laying out how to divide your property so that people can buy lots from it. Your development plan should highlight what sort of your homes you will be planning to build along with the margin of profit to aim for.

You also need a prospective timeline for your development. For example, a good plan would specify that you would be ready to sell lots in five years with a 20 percent profit. The proposal would also highlight the fact that you plan to build houses that meet LEED Gold building standards.

Get Some Financing

real estate financeUnless you have a large cash reserve, you will need to borrow money to finance your development. Fortunately, banks like loaning out to real estate developments since they consider it a sure thing. What you need to be aware of are the interest rates and your payment schedule. You don’t want the bank going after you before you are ready to sell.

Ensure Utilities and Road Access

When you have the land properly plotted out, it is time to standardize the access for your land development. There are several contractor crews that you need to contact, each of them specializing in one specific type of construction. That includes roads, gas pipes, electricity, water, and drainage. It may sound confusing, but you can simply go online, and you’ll find contractors that offer their specific services.

For example, if you look for drainage specialists, you can easily find the Drainways website at, which showcases their skill at providing proper drainage for a variety of land developers. Do the same online search for other specialized contractors. Once the utilities are laid down, the road crews should start paving the roads to make access for house construction easy.

Do Some Marketing

While the homes are being built, you should take steps to promote your development. Start sending out brochures and advertising online and offline. Doing this should draw interest and potentially have buyers making inquiries. It is a good idea to start selling lots. That can help fund future developments and start paying off your loans.

Doing It Right

Developing the land that you bought can be difficult and expensive. Turning your large plot of land into a subdivision can provide you with the most effective way to get back your investment. Doing it right will ensure that you get the best returns possible,

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