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I was just wondering if anybody has had any experience in developing land. I was just offered an oppurtunity to buys some farmland that they are selling for tax value and wanted to get some advice on what to look for and consider before buying. It is 50 acres of farmland with few trees left on it. The asking proce is $200,000.
 

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Find out as much about whats nearby as you can. Schools, resorts, hospitals, ect.

Find out what the housing markets like in the area. Whats selling, how many, what time of year booms.

Find a realitor that will carry the ball.

If it's a resort area, your target market will need an offsite program to draw in ups, (buyers).

Remember to try and think like your target buyer.

Demographics are the most import thing in developing.

Where in North Carolina? My father developed part of Buggs Island Lake just north Durham.

Bob
 

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Hell if they are selling it for just tax value you've got it made! I'd jump on that deal, then decide if I was capable of developing it. In IL and surrounding areas 50 acres would be $500,000 at very min.

You could always hire a development company to do the roads and infrastructure etc... and you can handle all the house building.
 

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Tarheel - do some due dilligence before buying land at tax value. You wouldn't be the last guy to become the proud owner of a superfund site! I'm not saying the land isn't worth more, how could I know? But some land isn't even worth the tax value of it, especially if you are inheriting 10 years of back taxes!

A good source to help you would be your local realestate investment club. These things are filled with experienced investors who can set you on the right track to understand what you might be able to get or what you might be getting yourself into., because things are usually never what they appear to be.

As a simple reference that has no bearing on your area but here in colorado farm land usually has water rights, sometimes the farmer has sold the water rights but kept the land. That land is pretty much worthless without water rights for farming ever again. It could be developed for housing, but now you are looking at wells if no city water is available, and then there are laws here that could make it impossible to get residential wells on the land. Another scenario here could be you buy 5 acres in the mountains and then find out that because of the steepness of the slope you can't build on it because you can't build a access road where a fire truck can turn around on it.

The point is that you need to really make sure that a good deal is really a good deal, every place in the country is different and what might not be a problem here could be a problem there. An acre in one place in my state could be worth $1,000,000 and another could be worthless.
 

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Tarheel, I own some 40 acres in Catawba County. The land value is decided by usefulness, the most valuable being cleared farmland which is about $4K per acre. Second is hardwood acres that are based on the potential board/ft of lumber. Lastly is unuseable mountainside that can run as little as $200.00 per acre in places.
How is Statesville now? 30 yrs. ago I turned down a free home there. Just curious.
 

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Teetorbilt said:
Tarheel, I own some 40 acres in Catawba County. The land value is decided by usefulness, the most valuable being cleared farmland which is about $4K per acre. Second is hardwood acres that are based on the potential board/ft of lumber. Lastly is unuseable mountainside that can run as little as $200.00 per acre in places.
How is Statesville now? 30 yrs. ago I turned down a free home there. Just curious.
Hey Teetor, the land I am looking at is in Catawba County and it is cleared farmland with wheat on it. Do you remember where Old Shelby Highway is? Thank you guys for all the replies and suggestions. I will be taking my boards for the general contractors license here in a month or so and thought it would be nice to develop a little piece of land to get started. Statesville is growing alot! I have been in the Air Force for 6 years now so when I go back there I am amazed at the way it is growing. It would grow alot more if the council would let it but we have alot of people that want to keep it small. I didn't think of the back taxes on the land or the water rights so you guys are helping me out here. I am going to pick a book up on developing and get with a trusted friend who is a GC to maybe go in half with me and who is very experienced at developing.
 
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