Land Purchase Options Real Estate Development Question
Has anyone used an option to rezone, divide parcels, obtain contractors liens, obtain contingent contracts and close simultaneously without using much $$? If so, could you elaborate?
[{"id": "gnwgyo7", "text": "Too many site and project specific variables to accurately answer, but, in short, probably not. Zoning work can easily be $100k.", "replies": [{"id": "gnwl7ik", "text": "Agree.  I wouldn\u2019t invest that $ unless I had the property under contract.  Also, not sure how much you can actually do if you don\u2019t own the land.  Current seller isn\u2019t going to want you to redone the land before you buy it.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gnwgzb4", "text": "You have to get it approved before you can build it. I'm not too familiar with commercial but I don't think it's that fragmented. Approval process takes a while.", "replies": [], "depth": 1}, {"id": "gnx3qu8", "text": "You can tee up all the necessary changes to take effect concurrently or shortly after closing on the property.  It's common in multi-family development to get a contract under option and then go deep on due diligence, get contractor agreement signed, line up necessary permits and approvals.  \n\nYour question was going well until you said \"without using much $$\"... Everything takes money.  Gotta distinguish between predevelopment costs, acquisition costs, and development costs.  Investors may make predevelopment costs reimbursable.", "replies": [], "depth": 1}, {"id": "gpklfgs", "text": "Not sure if this will be helpful but we have a few cities in central WI that are practically giving us land that is ready to build multifamily townhouses on. It's already zoned for that and has all the utilities already in place. Maybe this could be an alternative to rezoning the piece you are looking at?", "replies": [{"id": "hueeceh", "text": "Where in Central WI?", "replies": [], "depth": 2}], "depth": 1}]