Land Development For Profit: Business and Residential Real Estate

By John P. Knipe

While each state is different in the requirements that coincide with the development of raw land, some criteria remain the same. Zoning for business or residential is important, when deciding how to proceed with the initial development. Special interest groups that take an interest in land development may hinder progress, depending on the situations that arise, and the legal ramifications that develop from the actions taken by either party. Many aspects of developing land are discussed and analyzed to assist you in your endeavor.

• Language: English
• Publisher: BookBaby
• Release date: Dec 19, 2023
• ISBN: 9798350939316

John P. Knipe

John Knipe is a Designated - Principal - Managing Broker of 5 real estate firms across the Northwest. Knipe holds two Doctorates. The first was awarded by Michigan State University - Doctor of Business Management - with High Honor. The second was awarded by The University of Phoenix- Doctor of Philosophy and Religious Studies. Knipe served as the Senior Executive Editor of the Range Writer Land Magazine. Its' readership exceeds 400,000 people. Knipe has received dozens of marketing awards during his career, based on closed sales volume. He's earned the two highest awards from the National Association of Realtors; Excellence in Service Award and Realtor of the Year. He's also won the National Apex Award from the National Association of Realtors. This award is awarded to the top farm - ranch - agri-commercial brokers in the United States. Knipe has received this award every year it's been awarded.

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Copyright © 2023 John Knipe

All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except for the use of brief quotations in a book review.

Table of Contents

Section I Land Development for Businesses

Overview – Land Development for Businesses

Learning Objectives – Land Development for Businesses

Chapter 1 The Process

Self Assessment – Chapter 1

Land Development for Businesses

Process Questions

Chapter 2 Initiating the Process

Self Assessment – Chapter 2

Land Development for Businesses

Initiating Process Questions

Chapter 3 Legal Consideration

Self Assessment – Chapter 3

Land Development for Businesses

Legal Section Questions

Chapter 4 Public Requirements and Restrictions

Self Assessment – Chapter 4

Land Development for Businesses

Requirements and Restrictions Questions

Chapter 5 Police Force and Fire Fighter Visibility

Self Assessment – Chapter 5

Land Development for Businesses

Police Force Questions

Chapter 6 Taxation

Self Assessment – Chapter 6

Land Development for Businesses

Taxation Questions

Chapter 7 Private Restrictions on Development

Self Assessment – Chapter 7

Land Development for Businesses

Private Restriction Questions

Chapter 8 The Interstate Land Sales Full Disclosures Act of 1968

Self Assessment – Chapter 8

Land Development for Businesses

Land Sales Act Questions

Chapter 9 Building Envelope

Self Assessment – Chapter 9

Land Development for Businesses

Building Envelope Questions

Section II The Product

Chapter 10 The Product: The Basis for Merchandising

Self Assessment – Chapter 10

The Product

Merchandising Questions

Chapter 11 Market Analysis

Self Assessment – Chapter 11

The Product

Market Analysis Questions

Chapter 12 Supply and Demand Analysis

Self Assessment – Chapter 12

The Product

Supply and Demand Analysis Questions

Chapter 13 Business Investment Analysis

Self Assessment – Chapter 13

The Product

Investment Analysis Questions

Chapter 14 Summary – Section II

Section III Land Development for Residential

Overview

Land Development for Residential

Learning Objectives

Chapter 15 The Residential Process

Self Assessment – Chapter 15

Land Development for Residential

Residential Process Questions

Chapter 16 Initiating the Residential Process

Self Assessment – Chapter 16

Land Development for Residential

Initiating Residential Process Questions

Chapter 17 Residential Legal Considerations

Self Assessment – Chapter 17

Land Development for Residential

Residential Legal Questions

Chapter 18 Public Requirements and Restrictions for Residential

Self Assessment – Chapter 18

Land Development for Residential

Residential Requirements and Restrictions Questions

Chapter 19 Police Visibility

Self Assessment – Chapter 19

Land Development for Residential

Police Visibility Questions

Chapter 20 Residential Taxation

Self Assessment – Chapter 20

Land Development for Residential

Residential Taxation Questions

Chapter 21 Private Restrictions on Development for Residential

Self Assessment – Chapter 21

Land Development for Residential Residential Restrictions Questions

Chapter 22 Building Envelope for Residential

Self Assessment – Chapter 22

Land Development for Residential

Residential Building Envelope Questions

Chapter 23 Why People Buy Communities and not Houses?

Self Assessment – Chapter 23

Land Development for Residential

Communities versus Houses Questions

Chapter 24 Eminent Domain Laws

Self Assessment – Chapter 24

Land Development for Residential

Eminent Domain Questions

Chapter 25 Section Summary Land Development for Residential

Section IV Location Attributes: An Economic Concept

Overview

Location Attributes: An Economic Concept

Location Attributes: An Economic Concept Learning Objectives

Chapter 26 Broad Economic Analysis

Self Assessment Chapter 26

Location Attributes: An Economic Concept

Economic Analysis Questions

Chapter 27 Site Level Economics

Self Assessment Chapter 27

Location Attributes: An Economic Concept

Site Level Economics Questions

Chapter 28 Functional Layout (Obsolescence)

Self Assessment – Chapter 28

Location Attributes: An Economic Concept

Functional Layout Questions

Chapter 29 Personal Response Factors

Self Assessment – Chapter 29

Location Attributes: An Economic Concept

Personal Response Questions

Chapter 30 Section Summary

Location Attributes: An Economic Concept

Section V Overview

Consumer Profile: The Basics for Existing Demand

Learning Objective

Consumer Profile: The Basics for Existing Demand

Chapter 31 Absorption and Capture Rates

Self Assessment – Chapter 31

Consumer Profile: The Basics for Existing Demand

Absorption and Capture Questions

Chapter 32 Risk Management

Self Assessment – Chapter 32

Consumer Profile: The Basics for Existing Demand

Risk Management Questions

Chapter 33 Promotion and Deal Making

Self Assessment – Chapter 33

Consumer Profile: The Basics for Existing Demand

Promotion and Deals Questions

Chapter 34 Section Summary

Chapter 35 Book Conclusion Developing Land For Profit

Chapter 36 Mock Development Situation

Appendices To Development Situation

Appendix 1: Gantt Chart

Appendix 2 Optional Floor Plans

Appendix 3 Home Owners Association (HOA) Rules and Regulations

Appendix 4: Covenants, Conditions, and Restrictions (CC&R) Guidelines

References

Section VI Glossary

Section VII Answers

Section VIII Appendices

References

Section I

Land Development for Businesses

Overview –

Land Development for Businesses

Land development for businesses provides opportunity for economic growth. While each state is different in the requirements that coincide with the development of raw land, some criteria remain the same. Zoning for business or residential is important when deciding how to proceed with the initial development. Negotiated price of the land can influence the amount of development that will occur and the return on the initial investment. Special interest groups that take an interest in the land development may hinder the progress, depending on the situations that arise and the legal ramifications that develop from actions taken by either party.

Learning Objectives – Land Development for Businesses

Acquisition of land requires funding, a deed or title search, an appraisal, and insurance coverage to change ownership of the property. Development requires proper zoning, blueprints, permits, materials, and actual construction of a building. In this section, the student will gain a better understanding for the process of land development for business, how to initiate that process and the legal ramification and considerations that are associated with the development of raw land. Public requirements and restrictions, police force and fire fighter visibility in the community, and taxation on the land and its development will also be included for the student’s knowledge. Private restrictions, the Interstate Land Sales Full Disclosure Act of 1968, and the building envelope for a business will conclude this section. Land development for businesses or residential occupancy requires specific guidelines that when followed, expedite the whole project. Several steps are included in the process of any land development.

Chapter 1

The Process

Finding land that is available in the correct acreage with the proper zoning is essential to the success of land development for business. Land that is posted for sale is easily accessible with details about the acreage, utilities, and other specifics that increase the value of the property. Acreage that is not posted for sale may need some research to expose the essentials that will determine the price that is offered. A county clerk’s office will have the deed on file to provide the pertinent information for an individual to make an offer for the land.

Making an offer to purchase undeveloped land can be easy or hard, depending on the situations surrounding the land. Recent sales in the near vicinity will provide a base price to start negotiations. Knowledge about the property’s previous usage will help determine other information that may increase or decrease the price that is being offered. Water rights that are attached to the property will increase the value of the land. Mineral rights will also increase the value. Geographical and geological surveys can be performed to uncover flood plains, oil and natural gas deposits, and valuable minerals. Many geographical and geological surveys are often done after the acquisition of the land to avoid extra compensation for the purchase price. Many private citizens do not consider this type of survey necessary because of the expense that would be accrued with no guarantee of finding any valuable resources to warrant the survey. A counter offer is usually made by the seller as a way to increase the purchase price. In cases where the land has a lien against the title, the bank may become involved in the price negotiations. A title search on a parcel of land will disclose any liens, court judgments, or other issues that are connected with that specific property. Land that does not carry a clear title will require steps and often money to clear up any issues pertaining to that parcel. In some cases, clearing the title can be more expensive than the price of the land and may require careful consideration on the part of the buyer. Any transfer of land requires an appraisal on the property. The buyer is the one who pays for the appraisal unless otherwise specified in the negotiation contract of the sale. Once the appraisal is complete, the results will be sent to the financial institution that is providing the funding for the transaction.

There are several way to secure funding for the purchase of raw land. Private investors can be brought into the deal with appropriate contracts that spell out the return on the initial investment to each investor. Banks can be used and in the event that more than one bank is involved in providing the funds for the purchase, each bank will