Land Development Project perception

[KJ1225]

Hello everybody!

My name is Eddie and I`m a new member of this forum as you can tell from my post count

I wanted to see what people`s perception of Land Development and Land syndication offerings that you can purchase. For instance, buying raw land development offerings in a form or UDI land title or through Limited Partnerships.

Any input on how you guys feel about this topic is appreciated!

Thank you

 

[Thomas Beyer]

land development is a business that works well if

a) the syndicator is honest
b) the market is rising
c) there is demand for the lots being created
d) the timelines, expenses and sales prices presented are realistic
e) the syndicator has a proven track record

 

[KJ1225]

QUOTE (thomasbeyer2000 @ Jun 26 2008, 12:54 AM) land development is a business that works well if

a) the syndicator is honest
b) the market is rising
c) there is demand for the lots being created
d) the timelines, expenses and sales prices presented are realistic
e) the syndicator has a proven track record

Thanks for giving me your insight on this topic, how do you feel about the Alberta land and/or lot market right now?

 

[Thomas Beyer]

QUOTE (KJ1225 @ Jun 26 2008, 09:32 AM) Thanks for giving me your insight on this topic, how do you feel about the Alberta land and/or lot market right now?
a bit vague of a question .. ANY real estate is ALWAYS a good deal @ THE RIGHT PRICE .. anytime, anyplace !!

prices have come down a bit to 20% across Alberta .. some more than others .. so YES .. @ the right price !!

 

[KJ1225]

QUOTE (thomasbeyer2000 @ Jun 26 2008, 11:30 AM) a bit vague of a question .. ANY real estate is ALWAYS a good deal @ THE RIGHT PRICE .. anytime, anyplace !!

prices have come down a bit to 20% across Alberta .. some more than others .. so YES .. @ the right price !!

Sorry for not narrowing down the question, but what I meant was in regards to land syndication projects that taking on investors.

I see some developers selling land development investments( in a form of a UDI or a Limited Partnership) in rural areas such as Red Water(Alberta Industrial Heartland) and some just outside city limits like Beaumont, Airdrie and area. They seem to me to be pretty good as Alberta is anchored by a strong economy and investing in Land Developments(Turning raw land into zone residential or commercial plots/lots) can be quite lucrative(or so they claim) in terms of returns. How do you feel about projects like these?

for instance, projects offered by Hasco Development, S&D, Genesis and such other companies

 

[Thomas Beyer]

QUOTE (KJ1225 @ Jun 27 2008, 09:50 AM) Sorry for not narrowing down the question, but what I meant was in regards to land syndication projects that taking on investors.

I see some developers selling land development investments( in a form of a UDI or a Limited Partnership) in rural areas such as Red Water(Alberta Industrial Heartland) and some just outside city limits like Beaumont, Airdrie and area. They seem to me to be pretty good as Alberta is anchored by a strong economy and investing in Land Developments(Turning raw land into zone residential or commercial plots/lots) can be quite lucrative(or so they claim) in terms of returns. How do you feel about projects like these?

for instance, projects offered by Hasco Development, S&D, Genesis and such other companies

all VERY risky right now .. and quite frequently UNDISCLOSED uplift is happening to the tune of 50 - 200% before syndication .. they buy wholesale .. sit on it .. and sell retail .. and you may make money or not .. HIGHLY SPECULATIVE .. so OK with risk money, with the right honest developer, without uplift or disclosed uplift only, based on a proven track record, with no mortgage .. likely an ROI well below 20%/year with very high risk .. so poor risk / reward ratio ! ROI needs to be SUBSTANTIALLY higher than cash-flow projects .. and often they are not ..

these are all just general rules as I do not have any specifics .. send me a private e-mail with details !