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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, 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 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 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 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 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 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 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://realestatedevelopmentcoach.com/realestatedevelopment.html
MORE RESOURCES: L.A.âs Real Estate Upfronts Reveal Penthouse A at Rosewood Residences Beverly Hills Hollywood Reporter Real estate mogul cautions about avoidable mistake when buying a home, explains how to avoid 'drowning' Fox Business Massachusetts real estate transactions for Hampden, Hampshire and Franklin counties May 19, 2024 edition MassLive.com Real estate transfers: May 17, 2024 RiverheadLOCAL London Real Estate Is About to Get the âSelling Sunsetâ Treatment Hollywood Reporter Real Estate Newsletter Articles this Week: Housing Starts Increased to 1.360 million Annual Rate in April Calculated Risk Mid-May Greenwich Real Estate Market Report Greenwich Sentinel Should I Buy a House Now or Wait Until 2025: Expert Forecast Norada Real Estate Investments Dodge County Real Estate Transfers Fremont Tribune The Michael Houck Real Estate Guide for May 19 Oil City News Washington state ahead of the game as lawsuit rewrites real estate commission rules The Business Journals MCB Real Estate Revives Long-Awaited Viva White Oak Mixed-Use Project Source of the Spring STAR resource center Department of Taxation and Finance Yes, there are other coastal Delaware towns besides Rehoboth Washington Blade Dutchess County, NY real estate 2024: What's on the market for $579K Poughkeepsie Journal Baltimore real estate: 4 waterfront condos for sale The Baltimore Banner Revolution in real estate: How the NAR settlement is changing the game Eden Prairie Local News Real Estate Briefs: Lakeside homes, news condos, and more news Rough Draft Atlanta Home Prices Hit Record Highs in April 2024: Trends & Forecast Norada Real Estate Investments REAL ESTATE | UPDATE | Johnson Bus selling lot for new West Bend Fire Department No. 1 washingtoncountyinsider.com VIDEO | REAL ESTATE | Construction finally underway for Taco John's in West Bend, WI washingtoncountyinsider.com Coloradans negotiating lower fees for real estate agents with new law on horizon Colorado Public Radio Innovative Leaders Vanderstraaten and Rohrman Inducted into North Texas Commercial Real Estate Hall of Fame ... dallasinnovates.com James Quinn's Data Center Advisory Expertise at JLL Drives Innovative Real Estate Solutions for Global Corporations Markets Insider Oceanport's Denholtz recognized by commercial real estate organization themonmouthjournaleastern.com Here are recent property transfers up to $1.28 million St. Albans Messenger Westmoreland County Real Estate Transfers | Real Estate | latrobebulletinnews.com latrobebulletinnews.com Real Estate Mogul Grant Cardone Closes Largest All-Cash Multifamily Deal In South Florida This Year Yahoo Finance Routt County real estate sales at $17.6M for May 9-15 Steamboat Pilot & Today China Says It Will Start Buying Apartments as Housing Slump Worsens The New York Times OT Real Estate Spotlight of the Week: 2115 Sheridan Place The Owensboro Times Robert Willett may be targeting female Realtors in Northeast Ohio Akron Beacon Journal Refined Real Estate: Unique Leschi home with lake views lists for $1,395,000 seattlerefined.com Number of homes for sale in Metro Atlanta increased significantly, real estate brokerage says â WABE WABE 90.1 FM Billy Joel spends over $10M for sprawling East Hampton pad with horse farm, neighbors other A-listers New York Post What's real estate wellness? Fortune Billionaire Frank McCourt raises his hand to buy TikTok Business Insider Connecticut real estate law changed after MV Realty investigation Eyewitness News 3 Connecticut real estate law changed after MV Realty investigation Eyewitness News 3 Ellison sues real estate broker Chad Banken over alleged schemes involving contracts for deed Star Tribune My Co-op Neighbor Never Pays His Maintenance on Time. Can We Make Him? The New York Times Navigating Northern Virginia Real Estate: An Insight Into Rhonda Campbell's Bespoke Approach Grit Daily ACRES 2024 showcases innovative real estate projects focused on enhancing environmental sustainability Malaysia Sun Local couple buys Pat Burrell's former Center City penthouse for 38% under original asking price The Business Journals Letter: Clarifying changes to real estate industry Morgan Hill Times Home listings are on the rise in southern Colorado, while other indicators show a slowing real estate market Colorado Public Radio Sean Bloom Investments Announces $2B Real Estate Project in Las Vegas InvestorsObserver Southern fast-food chain Cook Out buys Tampa real estate The Business Journals Did Fort Worthâs real estate market really âbottom outâ? | Fort Fort Worth Star-Telegram New Rules for North Texas Real Estate Agents Creates Uncertainty Dallas Observer EG Real Estate: 18 Opens This Weekend â East Greenwich News East Greenwich News KKR Real Estate Finance Trust Inc. (NYSE:KREF) Given Average Recommendation of âModerate Buyâ by Analysts Defense World Busch relative settles squabble with Clayton investors over real estate trust St. Louis Post-Dispatch Real Estate Transactions for May 18-19 | News, Sports, Jobs Nashua Telegraph Edgefront Real Estate Investment Trust (TSE:NXR) Forecasted to Earn FY2024 Earnings of $0.73 Per Share Defense World LOCAL REAL ESTATE TODAY 5.17.24 â KQEN News Radio kqennewsradio.com Shaping the Future of Real Estate Technology RisMedia.com Do starter homes still exist? Here's what NJ realtors said NorthJersey.com Housing Market 2024 Predictions Bankrate.com End of war against property speculators marks new phase in China housing South China Morning Post First Capital Real Estate Investment Trust (TSE:FCR.UN) Share Price Crosses Above Two Hundred Day Moving ... Defense World |
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