There is so much you can do with land, you’re basically free to do whatever the hell you want. Some words of warning: don’t do something just because you can, and try to tap into the local market, and fix that zone/area.
If you find a plot of land and it’s in the middle of no where, even if its a beautiful plot of land, you’re not going to build a shopping mall, right?
Because who’s going to shop there? Nobody. Look around the local area, if you have a plot of land that is near a residential section and it forms good boarders then maybe you can put a residential development there. If it’s a huge plot of land and it is in the middle of no where, maybe you can do some renewable energy sources like solar or wind.
The return on land is huge, even if all you do is find the land, appraise it, and say “this is a good idea to do with the land”.
Just wrap up the idea, plunk it on the lap of a developer. As long as you’ve done the appraisal and calculated the numbers, you could get a huge upside just for sourcing that kind of deal.
Just source it, thats all you need to do, you don’t need to develop the land if you don’t want to take that risk on, just source it on, patch it up and send it on to a developer. Sourcing fee’s on developments are like 20k+, we’re looking for specific sites at the moment and based on the figures we’ve been looking at, we can do something like 100 grand sourcing fee. How many of those do you need versus single lets or BMV’s? Especially in a rising market.
We’re in a rising market and deal patching is a little bit different, you don’t package BMV’s as much in a rising market. You package things that are high cash flowing assets, or you package developments sites. Knowing how to appraise the sites and reviewing them in detail.