Land development is a very attractive investment tool, generating value for the most affluent people in the world. At Foundation Capital we do all your homework for you, developing lands that in the long run will be profitable for everyone.
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The Process
Land Development or "Community" Development is the process of taking raw lands and turning them into residential and commercial communities in which many people live and work.
Land Devolvement means developing a vision for these communities, as well as providing the necessary financing - first to buy the land, and then to install all the necessary amenities and services to create a homesite, including but not limited to: roads, sewers, parks, water lines and other utilities.
These homesites or "building lots" are sold primarily to major builders who construct and sell single family homes, duplexes and other multi family homes to new home owners.
Under the right circumstances, land development can be very profitable. Important factors influencing profitability include:
1. the original price of the raw land
2. the cost of financing the services needed to create the building lots
3. the skill of the management team
4. the sale price and demand for the building lots in the community
Unlike traditional real estate, which relies solely on market forces to drive up prices, land development converts land into a higher demand product, and thus can dramatically increase the value from the initial investment.
Ideally the land should:
border a city that is growing quickly and has a strong economy, minimizing the time it takes to be annexed or rezoned
proximity to existing sewer lines and other services , the closer the land is to services the cheaper and sooner the land can be converted into lots
the attractiveness of the geography and topography
surrounding developments (be close to amenities that will attract home owners to the area such as golf courses and shopping malls)
potential lot density (the more building lots per acre the higher the profits)
Foundation Capital puts together world class development and management teams to bring our projects from raw land to residential lots, maximizing the profits of our investors.
Attend a free seminar to find out more
