Choosing a Plot of Land for Construction- Noam Segal – Entrepreneur of the Week…

Choosing a Plot of Land for Construction- Noam Segal – Entrepreneur of the Week – Post 3

#EntrepreneuroftheWeek #RealEstate #Flips #BuyAndHold #BRRRR #Mortgage #Investors #RiskManagement #NewConstruction

Hi, everyone,
After yesterday we chose the right district the next thing buying a plot ????.
There are all sorts of reasons why people buy land, some are building on a future increase in value and some want to build a house for sale or rent.
In any case, you must do your due diligence because you can get stuck with muddy ground that is not suitable for construction or just not intended for the purpose you wanted and then go change designation (possible, but you do not want to be there if the time component is not taken into account…).
So today I decided to treat you to a checklist of things to check before buying a plot (feel free to add more of your own):

What’s the zoning of the pitch? What is actually allowed to be built there?
Has the field been developed?
Are all the infrastructures in the lot?
Has the field been parcelled?
Does the pitch have an address?
What is the PARCEL ID of the lot?
What is the pitch number?
Is there a SURVEY of the pitch?
Removing a map of the neighborhood from the district and finding the lot on the map.
What is the topography of the pitch? Ascent, Descent, Plain Should Retaining Walls Be Built?
Is the plot in the FLOOD ZONE?
Is it a stream or a water channel?
Do they have IMPACT FEE?
What is the COMPS of lands in the area?
Check what kind of houses are being built in the neighborhood.
What are the prices of homes in their sale?
Is there a HOA in the neighborhood?
What is the PROPERTY TAX price of the plot in recent years and has it been paid?
What is the type of sewer in the SEPTIC or PUBLIC SEWER neighborhood? If it’s SEPTIC need to perform a perc test!
If there is a sewage infrastructure in the neighborhood, check SEWER CAPACITY!
Talk to the neighbors.
Look with your eyes on the pitch and do not forget to look up too ????
Consult a realtor from the area who sells new construction.
Understand the finishes required in the neighborhood.
Take quotes from contractors.
Check that the numbers make sense or how to build a business plan since it will make sense… ????
Of course if the pitches have not been developed then it is a completely different game and then the requirements are more complex and need the help of experts. I only recommend people who have done it in the county in question. A building permit will not be issued until the development of the plot is completed and the time component must also be taken into account here.
In the video – one of our projects in Atlanta during the field test phase.
Hope I helped, good luck to everyone

Continue reading on our site…
https://www.forumrealestateusa.com/2021/07/choose-the-right-district-noam-segal/

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Yossi Golan # Post 2

** Acquisition of land in the USA **

You decided you were tired of flipping!
And what is the reason? Murphy.

Murphy visited you a little more than you thought.

The wall that you decided to remove during the renovation, in order to open up the space in the center of the house, actually concentrated all the electricity and air conditioning infrastructure inside.

And so they evaporated a few thousand dollars more and a good reason for the subcontractors to explain why they are not on time.

And the excel is already starting to wave a red flag.

And so in every project new “surprises” like mushrooms come up after the rain and most of them how to say gently? Not really for the better.

You have decided “so far”! You are going on new construction projects.

And you started looking for land. Wonderful.

And you even found land. overpowering.

Have you checked COMPS as written in the books? Excellent.

Have you analyzed the prices of houses in the neighborhood? Stunning.

But now let’s start checking out what’s really about to be purchased – the land.

But what do you check?

At the flips we sent contractors for an estimate of the cost of renovation, we sent an inspector to check foundations, roof, windows, air conditioner, electricity, water, compliance with required codes, mold etc.

But in the case of land – there is nothing of everything we are used to checking… .. it’s land, it’s land.

What is being checked here anyway?

You start to realize that the test is a little different, actually…. Much different.

Need to sign a purchase contract. But this is land. Is it even necessary to include a review period in the contract? Due diligence?

The answer – of course yes!

What exactly is being examined in this period?

Great question.

** To facilitate the process, I have prepared a CHECK LIST of 24 issues that need to be examined and I have even added the terms in English in important places so that the other side will understand the issue accurately. **

The answers will help you answer the question – is it even possible to build on this land? And as far as construction is possible – is it economical and profitable to build on this land?

So let’s start…

**1. Is the land buildable? **

This is the first question, and even though it sounds silly – this is the most important question.

The land may not be buildable.

In such a case it is necessary to understand what the costs are for turning it into a construction bar and what is the length of time required for this.

** 2. Is the area developed? **

Undeveloped space will incur many expenses and a long period of time both in issuing permits and in preparing the land.

It is important to examine all the costs of preparing the land until it is ready for construction.

It is advisable to test using a proposal from several contractors to prepare the land for construction up to Pad Ready (and calculate on your own, once you have developed capabilities for this). ** Land development costs can turn a good deal into a hole in your pocket. **

** 3. Existence of infrastructure **

Are the required infrastructures in the area, including gas, sewage, water and electricity?

If the infrastructure is not available – the costs involved must be taken into account as well as the processes with the various supply companies, which means – time and budget.

** 4. Infrastructure constraints **

Check above and below the surface. Are you moving or are planning to move infrastructure that will impair your ability to build a house as you wish, if at all you are allowed to carry out construction.

** 5. Is there an infrastructure filler in the area? ** (It can cost up to $ 15,000)

** 6. Sewage infrastructure type – Sewer line or Septic **

A substantive question. We will return to it again at the end of the post.

If the infrastructure is Sewer – there is a set of issues to examine, for example: Is it necessary to install a pump to raise the sewer to road level if the ground is sloping?

If the Septic infrastructure – the most important question – does the soil allow liquids to be absorbed?

Sometimes the soil does not allow for the absorption of liquids and then construction will simply not be allowed on this soil.

The required test is called a Perc Test and costs about $ 500.

** 7. topography**

Even if the land is developed and all the infrastructure is in place – should preparatory work be done before foundations? Is special development and preparation work required?

Here is a case we experienced – about two years ago we considered buying land in Chattanooga, Tennessee to build a new house in a luxury neighborhood with an amazing view and schools with a score of 10. The price of land about $ 50,000 was definitely reasonable for the area and even 20% cheaper than the market value.