Land development is the process of taking land from a certain condition, and changing the landscape, changing lot lines, creating additional lots and/or changing zoning for the betterment of value.
Removal of existing structures, clearing trees, changing the topography, installing utilities such as water, sewer and electricity and changing zoning are a few examples of land development.
Land development is not for the beginner. In most situations, the investor pays cash for all land development purchases and improvements.
Land development can take years to complete and requires many processes, hearings, and legal and professional services to complete the process. Ultimately, depending on what you wish to do, your changes may not be approved as desired. It is possible, if the seller is willing to wait, that a contract to purchase is contingent on gaining development approvals. In most cases, the seller is offered a premium to wait.
The first step in land development is to secure a property with a purchase contract based on a feasibility time period. In this time period, you'll meet with government officials to get their opinions on what you are trying to do, as well as meeting with engineers to gain time tables, costs and probability facts. You will also do a market analysis at this point to help ensure what you want to do is needed and or wanted. Sometimes neighborhood resistance can cause delays and/or prevent development from happening.
Feasibility, acquisition, design, financing, construction and marketing are just a few considerations of the land development process.