What Every Real Estate Investor Needs to Know about Land And The Cost of Development

 

“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “  AND  “The major fortunes in America have been made in land.”- John D. Rockefeller.  ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA,  CLICK HERE  AND PLEASE CALL ME.     520-975-5207 or email me walterunger@ccim.net

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by Karen Margrave | BiggerPockets.com

Lately I have been contacted by several different BP members, wanting advice on the development costs for a parcel of land they own, or are considering buying.

They want to know how much it will cost to build a house on a particular lot. That number is always dependent on the lot costs and which stage of development the lot is at.

Is it a finished lot or undeveloped, etc.?

It seems so simple, you see a vacant parcel of land, there’s other homes around it, and you want to buy it and build on it. How can that be difficult?

It’s impossible for me or anyone else to tell you (without seeing your property) what it is going to cost to develop a specific parcel of land. I can, however, give you some starting points to help you begin to evaluate whether or not it makes sense.

Location, Location, Location!

  • Where is the parcel located?
  • Is it an infill lot where utilities are at the street, or in the country, where you will need to bring in services
  • What are the sizes of the homes and lots in the neighborhood?
  • What do homes in the area comp out for?
  • Is there a demand?
  • Are there views, close to shopping, beaches, lakes, recreation, amusements, etc.?

Related: Never Fail At The Location Game EVER Again.

Topography

  • Is the parcel relatively flat, downhill slope, uphill slope, etc.?
  • Is there anything on the lot that will need to be removed? (buildings, trees, junk, etc.)
  • Will the design of the house required extensive excavation? (lower level garages, etc.)
  • Will retaining walls be required?

Parcel

  • What are the dimensions of the lot?
  • What is the current and future zoning of the parcel?
  • What will be required by the local planning agencies in regard to set backs (landscaping, driveways, sidewalks, side yards, etc.?
  • What are the height limitations?

Once you have all that information, you can evaluate what the costs to develop the lot will be, and next what the costs of building a house on it are.

You can have two lots, side by side, but because of variations in topography the cost to develop can be dramatically different. The devil is in the details!

For a person with no experience in building from the ground up, there is far more to it than most people realize. If you have a lot that is on a hillside and needs extensive grading or use of caissons the costs add up quickly.

If the neighborhood doesn’t have comps to support a high dollar home, it’s not worth it, on the other hand, if it’s a multi-million dollar neighborhood, or has breathtaking views, it may be a bargain! SEE IT ALL: https://www.biggerpockets.com/renewsblog/2014/07/06/every-real-estate-investor-needs-know-land-cost-development/

ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA,  CLICK HERE  AND PLEASE CALL ME.     520-975-5207 or email me walterunger@ccim.net

VIEW ALL OF WALTERS LISTINGS

FROM ME:

Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land  Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group.  I also sold  hundreds millions of dollars’ worth of  Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with  brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also internationalClick here to find out what is a   CCIM:   https://en.wikipedia.org/wiki/CCIM 

PLEASE CALL ME 520-975-5207 OR E-MAIL ME walterunger@ccim.net

ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA,  CLICK HERE  AND PLEASE CALL ME.     520-975-5207 or email me walterunger@ccim.net

VIEW ALL OF WALTERS LISTINGS

WEEKLY LAND CLOSING UPDATE / THROUGH OCTOBER 27, 2017 / Phoenix Arizona Metro, Maricopa County, Pinal County.

WEEKLY LAND CLOSING UPDATE / THROUGH OCTOBER 20, 2017 / Phoenix Arizona Metro, Maricopa County, Pinal County.

Phoenix # 3 / Cities with largest increase in Baby Boomer renters / Forget The Millennials, The Baby Boomer Renters Want Apartments.

WEEKLY APARTMENT CLOSING UPDATE THROUGH October 27, 2017 /  Phoenix Arizona Metro.

WEEKLY APARTMENT CLOSING UPDATE THROUGH October 20, 2017 /  Phoenix Arizona Metro.

Timeline of Arizona from  900 BC – 2017                                              

WHY PHOENIX? AMAZING!!!  POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”

PHOENIX TOPS US IN POPULATION GROWTH (MORE THAN LA, NYC) AND WHY THAT’S GOOD FOR THE ECONOMY, BUSINESS

DOT – LOOP 202 / SOUTH MOUNTAIN FREEWAY / PHOENIX AZ – UNDER CONSTRUCTION

ARIZONA FACTS – YEAR 1848 TO 2013

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What is a CCIM.

CLICK HERE TO VIEW MY WEBSITE

  • DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
  • The average age of the population is 34 years old.
  • The health cost index score in this area is 102.1. (100 = national average)
  • Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).

PHOENIX PROJECTED AS NUMBER ONE US HOUSING MARKET FOR 2017

LIST OF ECONOMIC DEVELOPMENT PROJECTS IN PINAL COUNTY, REVISED 2-14-17

Reasons to Consider me for Commercial Referrals – I have the Knowledge and Experience                                                                                                                         

Click here to View My Listings and Profile

Click here to find out what is a CCIM:

Click here to view my website:

Click her to join my mailing list :      

Walter Unger CCIM –  walterunger@ccim.net   – 1-520-975-5207  –  http://walter-unger.com

2016 Official Arizona Visitors Guide

Visit Arizona

Why Phoenix?  This is a very interesting article, you should read it, amazing, there were only 350 K people living in Phoenix in 1950

Timeline of Phoenix, Arizona history

Phoenix, Arizona

Facts of Arizona – year 1848 to 2013

Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.

walterunger@ccim.net

1-520-975-5207

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 Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages.  The interactive map  shows the location of each community (10+ units) and each location is color coded by the size (number of total units). 

 Walter Unger CCIM, CCSS, CCLS

I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years.  If you have any questions about Commercial / Investment Properties in Phoenix or Commercial /  Investment Properties in Arizona,  I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us. 

Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207

www.Walter-Unger.com

Walter Unger CCIM

Senior Associate Broker

Kasten Long Commercial Group

5110 N 40th Street, Suite 110

Phoenix , AZ 85018

Direct:    520-975-5207

Fax:       602-865-7461

walterunger@ccim.net

www.Walter-Unger.com

What is a CCIM.

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Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me.

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