Buying Land For Development Requires Careful Planning and Execution

From the desk of Colm Dillon ...

Author

"Residential Development Made Easy

Hello Colm here ..

For your development project to be successful every element must be planned carefully.

Buying land for development is just one intergal part of that planning process; however it tends to be the focus of most start-up developers.

Before starting the process of selecting and buying land for development, you need to decide who or what legal entity is going to buy the land. For instance is it going to be in your personal name, in you and your partner's names or a company name.

Answering that question is important because you need decide who or what entity is going to borrow the money to purchase of the land,
but also borrow the money for the total development.

Each individual's personal circumstances are different. Add to that the different States or Countries in which we live, and and you can see that they are many permutations to be determined before you can answer that question.

These decisions are fundamental to your work as a developer. After all we are developing to make money and setting up your structure correctly ensures that the money you make is tax advantageous.

My best advise is to investigate and engage a good property accountant, a good property lawyer and a good property finance broker.

Notice I have bolded the word property against these three
professionals. Please understand that in any profession, there is the need to specialize.

I mean you would not get the best advice from a lawyer who mainly did family law, now would you. What's the answer? Before appointing anybody ... interview them ... after all you are about to base your future on their advise.

Have your personal and or company financial details clearly set out and in particular have your 'wealth plan'defined so you can brief each of these professionals.

Don't do you thinking in front of them. It wastes time; is unprofessional and costs you money. The better the quality of your preparation ... the better the brief you will leave with them.

Except for the Finance Broker, they all charge by the hour.

Please - please - please; if your best friend or Aunt Mary's next door neighbour is a lawyer, accountant, broker - don't engage them! Or if you want to go in that direction, interview them and ensure they have the correct property background.

Residential Development Made Easy goes into more detail as to how you proceed with these professionals and determine which entity actually buys the land; borrows the money; develops it from the greatest tax advantage to you and protects you legally

Let's Get Control of That Development Land

So your plan is progressing. We know who or what entity is going to buy the land. The next point to consider is what 'tool' are we going use to gain control of the land.

You'll see as you progress through the development process, you need to build in as much flexibility 'for you' as you can.

We haven't got there yet, but eventually you'll need to made an application to the local authority in order that you can build what you want i.e. 4/6 townhouses, apartments etc. What happens if the
authority says 'no.'

Do you still want to buy the land? I don't think so!

So in this part of Residential Development Made Easy I talk about the various strategies you can adopt to gain control of the land the correct way.

Time To Find That Development Land

One of the things you'll discover in my eBook, is that you can do several
development activities at the same time.

One of the 'Activities' I tell you to do "well before" any of the above action steps is to do your market research ... yes, I tell you how to go about it!

Is it important? ... Multi million dollar corporations spend 'millons' on market research ... if it's good enough fore them to do it, I think it's more than good enough for you as well. It's professional ... it's necessary ... and it's in your financial interests.

You can do this kind of research before you spend a 'dollar' of your own money ... you can do it in fun way ... but with a method behind it ... all explained in Residential Development Made Easy.

From that data base you'll know what type and size of accommodation product you want to develop. You'll finally also determine what is the total 'make-up' of your development.

OK, every authority has different development rules. You should go to the
Authority's offices and find out 'the rules' for the type of land you want to buy.

Architects know these rules ... ask them to explain to you the quick 'easy' way to determne a development site's capacity!

I give an easy example in my eBook ... how to assess the number of residential accommodation 'units' you can develop on a particular land site ... from the front seat of your car. All this impacts on your development costs.

Buy land for $100,000 and put eight units - houses, whatever, on it the land cost per unit is $12,500 per unit. If you local authority says No and only allow you to put four units on the land ... that looks like double yourcosts to $25,000.

Development Land Negotiation

Only you know if you can 'Do It Yourself!'

Well, Can you negotiate directly with the Seller of the land? It's the one I use myself ... but is it for you?

It's you choice ... if you go my way, my eBook gives you a 'word for word' script. Even if you don't do it yourself, you need my information to be able to manage the person who does it for you.

Plus other options.

The Contract to Buy The Land

In Residential Development Made Easy I address this subject in great detail.

You need to know the detail of Contracts for the Sales & Purchase of property.

In two sections of my eBook I give a 'blow by blow' detailed explanation of how to ensure your contract is prepared correctly for what you want to achieve.

To emphasise how important your understanding of the Contract is, let me just say this to you.

After you have completed all your market research, talked to your accountant, lawyer, finance broker, many real estate agents, found the property and successfully negotiated the purchase ... you then have to design your project and make application to the Authority for permission to develop.

This is the point: (read that last para again)

After all that work, time and money spent, the only thing that connects you back to the land you want to develop is a 'bunch of paper' called a Contract.

The words on the Contract should ensure that, if you get your approval to develop, that the Seller can't change his/her mind and not sell you the land.

Got It?

By that time you've invested a lot of time & money ... by getting an approval to take a property from its current position, say one house, to four townhouses, you have increased its value Subsantially.

If your contract is not correcly worded and the vendor can 'get out' of the contract, then the value increase you have created passes to him/her.

This is not a Happy Experience ... read Residential Development
Made Easy and be aware of what to do.

Oh Yes, I almost forgot. If you decide to negotiate the purchase of the property yourself, I take you through a special session on Contract Presentation to the Seller ...

By definition, there's a 'right way' and there's a 'wrong way.'

Life is full on these decisions ...

'turn right and you're successful,' or 'turn left and you're on your way to trouble'... 'learn the right way and be successful,' or 'keep flying blind
and learn from the school of hard knocks.

Colm Dillon author of "Residential Development Made Easy," the only 'How To' Become a Developer eBook, selling in 38 Countries; he has developed $1.2 Billion worth of real estate - read more on his web site: http://realestatedevelopment coach.com/realestatedevelopment.html

---

Searching for CLUEs: What Homebuyers & Sellers Need to Know About Homeowners Insurance

Homebuyers and sellers should be aware about issues involving homeowners... Read More

Be Patient Screening Tenants

Rental real estate is a solid way to make money.... Read More

Horses In My Back Yard

Horses In My Back Yard by Jody Hudson, with Extensive... Read More

Curb Appeal

First impressions do make a difference when selling your home.... Read More

Branded Email in the Real Estate Industry

Branded Email in the Real Estate IndustryYou're in the real... Read More

Real Estate Investing - Books,TV Infomercials, and Seminars

Real estate investing has become popularized today because of real... Read More

Sell Your Income Property For More

Selling income property isn't like selling a house. You can... Read More

How To Negotiate A Higher Price For Your House

Negotiation is where many FSBO home sellers really have problems.... Read More

Dont Sell Your House--Ever!

Keeping your existing house when you buy a new one... Read More

Real Estate Investing - Makeovers vs. Flipping

Please don't call it "flipping."Some real estate investors who practice... Read More

Cant Rent a Work Zone

So you've picked up your first (or third, or tenth)... Read More

Internet Battleground for Future of Residential Real Estate

Real estate agents are gearing up to face the biggest... Read More

OPM - The Art of Leveraging

Equity lender, hard money lender, private investor or what ever... Read More

Selling Your House - $100,000 Pets

Is your pet worth $100,000? It may be if you... Read More

Eleven Questions to Ask in an Agent Interview

Questions Sellers Should Ask in Agent Interviews:1. Is your license... Read More

How Do I Implement The Lease Purchase Plan?

Well, as we have discussed in previous newsletters first you... Read More

Buy or Sell First?

When it comes to home buying, the ideal situation would... Read More

Realtors Brainstorm For Business

Even though rates are down opening up the market for... Read More

The Person With The Most Money Wins!

More money can mean better:- Health Care - Relaxing... Read More

Real Estate Investing Requires Education

I really believe in getting an education in real estate... Read More

Home Selling: Making It Easy On Yourself!

It's a dream for many to buy and take ownership... Read More

The Bubble Effect

Turn on the TV at almost any time day or... Read More

How to Make Money from the California Real Estate Gold Rush

What do the Californians know that we don't?What is so... Read More

Property Investing Secrets 6

Property Investing Secrets:What No One Ever Tells You-How Real Estate... Read More

How to Research and Purchase a Good Investment Property

How much do you really know about investment property? Accurate... Read More

Building Your Dream Home - Part 1

For most of my adult life I had thought about... Read More

Why is Now the Time to Buy in Turkey?

Turkey is a paradise of sun, sea, mountains, and lakes... Read More

Selling by Owner = Saving by Owner?

According to the National Association of Realtors, For Sale By... Read More

Purchasing Property With No Money Down: My Personal Experience

Have you ever seen those infomercials about buying houses with... Read More

How To Find a Real Estate Agent

You may be of the opinion that you don't need... Read More

Not Everyone is Buying or Selling, Some are Doing Both

As if one real estate transaction is not hectic enough?... Read More

Real Estate Problem Solver

IntroductionThere are many areas one can invest in. Since I... Read More

Easing Your Way Into Homeownership: A Guide To Low Down Payment Mortgage Programs

There's no question about it: Buying a first home is... Read More