Multiple Questions About Developing
The Family Farm

Real Estate Development Blog

             

Hi Colm,

I am starting without funds or contacts to accomplish this outcome.

I have worked for X years for a compnay in a capacity which has exposed me to some areas of the working of housing development.

I have a general overview only with no specific technical details of the process.

I am heir to a XXX acre piece of free and clear farmland of which I want to consolidate all interests to it in an entity for the benefit of all the heirs.

I then want the family entity to lease the land for 99 years for development. I want a separate family entity to be the developers of condominiums on the land.

Here is my questions to you.

Gaining 100% ownership is presenting numerous challenges which need to be resolved before I can proceed with development.

I will need information about uncovering the legal issues related to all areas of the process.

I will need information on funding phases and how to fund the process without giving away control.

I will need information on getting through the political process of state and county requirements and rezoning rules.

These are just a few things I can see as a layman with out the specific knowledge of what is involved.

I know the task will require dedication and work on my part which I am willing to provide.

Now the question becomes. Have you successfully concluded a project of the nature, so that you can provide me with the information and knowledge I will need to obtain the obtain the successful outcome I desire?

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Hello G,

I will try and address the many issues you have raised. I hope you have read my page Blog The Coach, because there is a lot of good info in it that will improve your knowledge base.

Before we start – remember a developer is a person who has invested in KNOWLEDGE first.

To undertake any business without knowledge is financially fraught with danger and a lack of knowledge will be detected immediately by anyone in the business.

A developer is a person who manages a whole range of resources from real estate, to financial, to design, to town planning, to construction, to marketing, to selling. He/She may not do these things personally, however he/she must know about each one in order to manage the expert people he/she employs to achieve his goal.

So the first stage of your course is to acquire knowledge and that is what my ebook is all about – as you have read it is the only ebook in the world – so if you want to take this course of action – get the knowledge first.

Land is only worth what you can do with it, so by now you have read what I have said about “zoning” – the higher the zoning the higher the value of the land.

To get rezoning from farm acerage to develop condos, you need the professional help of a Town Planner. To undertake any development you need market research – is your land the right place for Condos – I don’t need to know but you most certainly do. You must know that your product will sell or be occupied by rent payers.

All of the questions raised by you above are what would be considered normal development activities. The only variation to ‘normal’ would be the issue of full ownership.

The only confusion I have is that you say that ‘you’ are heir and yet you want to consolidate “all interests’ – that implies that there are other ‘heirs.’ And if my interpretation is correct, then that involves you constructing a negotiation profile that is acceptable to all parties.

If my reading is wrong and you own the land in full ‘yourself’ then I don’t see the problem – it just becomes a legal issue and a lawyer will sort that out.

I have completed a wide range of development – all of which involve the issues you raise – as I have said they are part and parcel of the development process.

What you need to learn is the development process. Once you do, you will know what comes first, second and third etc.

To start off with no money is a problem – land is however capable of being borrowed against and you will need money to get the land rezoned.

If you get the land rezoned it will be valued higher than it is now. It will be more attractive to a banker to lend on. You might also need to consider taking on a development partner.

You might throw up your hands in horror, but you don’t have to think about doing a Joint Venture on the whole of the xxx acres. To get some money in your pocket you might only develop part of the land – it allows you to learn, as well as earn some money.

Irrespective of what you decide G, you will need knowledge.

Hope I have helped you,

Colm Dillon


Residential Development Made Easy


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