What is land development? Have you ever considered how the forest next to your favorite city park turned into homes and businesses? That is what happens during the process of land development. An investor seeks out a piece of land to purchase; they establish the land for a foreseen project such as a mall or subdivision and develop the property to be suitable. Then the hunt for buyers begins. The process of land development is risky however that risk is rewarded heavily when a purchaser is found.
The process of land development is often complex and time consuming. Often individuals seeking out to develop a piece of property will hire a company that specializes in land development to move the project along at a steady pace.
The first step involves in the land development process is hiring a respected civil engineer. The area will need to have a survey completed and be staked out for development. Boundaries will be set in place and a map will be laid out to show how everything, including existing structures are on the property. Zoning laws and city planning officials will be brought in and reviewed to ensure everyone is on the same page with the project.
The next phase includes city approval. In order to approve your project soil tests and tentative land plans need to be submitted. Any changes required will need to be done and then resubmitted for final approval. It is important to look into and special regulations your area may specify for land development. This might include issues with watershed, sewage and local utilities. Remember all areas have their own specifications that need to be abided by. Don’t assume anything. Assumptions lead to costly mistakes.
After all plans have been given final approval by all parties involved the substantial changes can begin. Most projects start with installing drainage, roads, gas and electric. It is important to have someone available to check in on the progress of the project so that any glitches can be caught immediately. As land starts to be shifted around, trees removed, concrete laid the tangible aspect of the land development project is in full bloom.
This is the point in which many land developers start to seek out potential investors. This could be parties interested in becoming land lords for a business development or contractors interested in building a subdivision. It is possible that several bids for the property will be taken into consideration before one is decided upon.
Land development has many steps, involving many different professional services. You can see why it can be potentially risky on more than one level. One hiccup in the process can lose a land developer thousands of dollars. Those are the same risks that make the reward level as high as it is.