Distressed Properties: Do I Need a Land Developer?

Are you interested in acquiring land for the purpose of commercial development? Developing a distressed property could be a smart move if it is done right. To ensure that you have considered every angle of possibility, you will need to hire a professional land development company. If they are experienced and diligent, they will help you realize the potential value of a property and maximize your chances of making it happen.

There are so many things to consider when buying and developing a property. From environmental impact, to financing, to marketing, you are going to need some guidance. The following list of land developers' responsibilities will help you to realize what pitfalls you can avoid by hiring a professional land development company and how they can help you make a profitable decision.

1) The first step should always be a market analysis. You need to know if the property you are looking at has any potential at all. Is it even feasible to make a profit? Some companies call this step "feasibility examination". The site should be examined and many analyses should be done. Then the financial projections can be made and you can use them to decide if this venture is something you want to pursue.

2) Analyses should consider zoning. Certain licenses are required for development. Using a company that has specific knowledge of property zoning and licensing requirements can speed up the development process, saving you precious time and resources. If necessary, your development company should be able to have the property approved for re-zoning.

3) Environmental concerns should be addressed. Land developers work with engineers to determine what environmental issues may arise if you develop the property. They should be able to advise you on how to properly use the land, what problems you may run into, and how to handle these situations as they pop up.

4) Property disposition should be analyzed. Especially with a distressed property, you need to be well informed. Market forecasts and current market conditions play a role in deciding how to zone the land. Your land development company should have many successful years of carrying out property disposition analyses. If they do, then they should be able to give you a realistic plan for creating a profitable plan. They may reanalyze the distressed property, redesign the structure(s), reposition the land and reconsider the plan of pursuit based on current and future market conditions.

5) Coordinating an engineering team is important. Civil engineers, traffic engineers, environmental engineers, land planners, architects and landscape architects should all work together in developing a feasible plan for your property. Land development companies should assemble these engineering teams based on the specific needs and plans for the property.

6) Marketing to the right buyer. Land development companies may offer marketing strategy analysis. Your property should be positioned and packaged to attract the right buyers. These decisions should be based on current market conditions and local demographics.

7) Financing should also be addressed by the company that you choose. Joint ventures, working capital and asset based financing, and mortgage and construction financing should be among your financial options.

When you have the right team working for you, you can count on them from start to finish. You can take a distressed property, envision the possibilities and maximize its financial potential with wisdom, prudence and a proven system of success.

Stacy Prosney is an award winning author and writer of web content for many different web sites.
She is well versed in many different areas, including real estate development, real estate investment consulting
and land development consulting.