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Due Diligence

Posted on: Tue, 03/19/2013 - 00:05
Due Diligence

I realize and appreciate the importance of my getting my due diligence done before I present a property to a developer or investor but I'm a bit OVERWHELMED as to how to do it.

I found over 6 acres of vacant land for 150K in Southern Ca. Homes around there are selling for a million dollars. However, there is a lot of undeveloped land there.

It's been suggested, I answer the questions below. I'm not sure how to go about it. If you any advice, I would greatly appreciate it. Thank you, Greg

1) What is the land zoned for?

2) Is the land developed or undeveloped?

3) Has there been any surveys or soil reports?

4) Can the lot be subdivided?

5) What is the allocation per lot?

6) How many houses per acre acre are allowed?

7) What are the utility hook up fees for the property? (sewer, water meter, gas, plumbing, electric etc.)

Cool Is the lot accessible by paved road?

9) How close is the lot to the nearest utility, house, paved road?

10) There could be additional costs to get plan approved, entitlement to make a road, subdivision.

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Posted on: Tue, 03/19/2013 - 12:18 #1
Thank you

Michael,

Thank you for your suggestion. I'll do that.

Greg


Posted on: Tue, 03/19/2013 - 20:03 #2
Real work

Most of those questions will be able to be answered by the county or city.
we are going to want to get in touch with the zoning and planning departments.
they are the ones that will give you the details if you can build or what steps you have to take in order to build.
Call them up and ask those questions. I am not sure if they can answer all of them, but most of them should be easily answered. Even if they cant answer all of them for you they will be able to get you to the right department that can.

So try that and let us all know how it went.


Posted on: Tue, 03/19/2013 - 21:01 #3
I had a seller once tell me her property

was zoned for commercial or residential. I did check downtown and it was only zoned for residential. It could only become commercial by getting all the neighbors to approve that lot for commercial purposes. So, yes I know the first one can be answered downtown, and probably all the others as well.

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Posted on: Tue, 03/19/2013 - 22:49 #4
Thank you

Coach Eric, Tammy and Michael,

Thank you for your good advice and insight. I appreciate it!
I will follow up on that.

Greg