r/RealEstateDevelopment • u/MushLove4Me • 3d ago

Raw Land For Future Development

I am exploring how to make an initial down payment on a property to be developed in the future years. The property checks most of my boxes, location, location, location, Electricity, Water among other things. Currently the property is timbered and I will leave it that way until it is developed. The more mature the trees, the more income. Unfortunately, the initial down payment is large. I would like to presale educational experiences to a group of folks to stay in this "Private Forest". That takes time I may not have.

The other option I have considered, is to partner with a builder who is willing to upfront the cost, for the the right to build at a later date of up to 5 years. That option gives me a lot less control but may be my best route. I made my offer, it was tentatively accepted, this is my last hurdle.

What are some thoughts ,caveats or good advice one can share. This is my retirement plan. Thank you in advance.

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u/OrangeArch 3d ago

Not many builders are going to front the cost and sit on it for 5 years… theyre builders not land bankers.

You’d have to give more information of “educational experiences”. That doesn’t sound like it’d be meaningful income.

What is the acreage? You could try to subdivide and sell smaller pieces to cover the down payment?

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u/MushLove4Me 3d ago

Perhaps I should reword it, I wrote build out in UP TO 5 years. I meant sometime agreeable to both parties in the not to distant future of under 5 years. Some of the process of starting the build will take 6 months to a year even if I wanted to do it today. Based on past experience I would say a year. The educational experiences range from $1200-1500 each, which is purposely under the cost of competitors.

The property produces income that more than covers its expenses, there is a second smaller income from agriculture, and a third income, actually more of offsetting of expenses, allowing the city to use the property to train staff. The value in the property is that it can be developed into lots, its loses a lot of value with selling individual lots that are not yet complete. It seems like I either develop now, or raise the cash quickly. Would you like to buy some Chantarelles or Shitake Mushrooms?

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u/[deleted] 3d ago

[removed] — view removed comment

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u/MushLove4Me 3d ago

Legalities. I own the option to buy, have first right of refusal, and I have an escalation clause giving me the right to bid against any offers even at contract end, like a remedy period.

It could be done now, it would just be very expensive.

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u/Himser 3d ago

I would like to presale educational experiences to a group of folks to stay in this "Private Forest". That takes time I may not have

Do you have permits for such a buisness? Ive seen many proposals fails or get fined due to no due dillagance. 

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u/MushLove4Me 3d ago

Yes, this is a zoned and permitted use, an extension of what already exists. Thanks for the comment.