Land development is the process of making improvements to a piece of land. Getting into land development can be a lucrative path for building wealth in real estate. With land development, you are executing a business plan to create forced appreciation.
Types of Land Development
There are many different types of land development. Each one has its own set of challenges and opportunities. - Residential Development - Commercial Development - Industrial Development - Agricultural - Utilities
How to Research Land Use and Zoning
Knowing that researching land use will be different in every jurisdiction, there are still the same basic resources you can tap into in each area. I have found the best research involves a mixture of doing my own research, involving professionals, and asking questions to the zoning officials.
These resources you can tap into are:
– Zoning Maps – Most jurisdictions have a map available online and in the zoning office showing the deliniations of zoning districts – GIS – Some jurisdictions have Geographic Information Systems (GIS)
Potential Uses of Land
You might think of land development as turning agricultural land into a subdivision as that is a prevalent form of land development near population centers. While this is true, there are many different types of land use that you can develop.
As part of your due diligence on land, you will want to have environmental studies completed before you purchase it. You will do this during the due diligence period of your contract to purchase.
Steps to Land Development
The process of land development can take several years. However, you can break it down into three major phases: Pre-Development, Development, and post-development.
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