Land subdivision is a bit like helping Mom slice up her beautiful Apple Pie; its all so easy, when, like Mom, youve done it a few times. So lets see if we can get the ingredients for a land subdivision correct so you can do it right first time, OK?
Every city or town in the free world has a Town Plan and it comprises, not surprisingly, of plans or maps, usually with lots of different colors all over them, but also lots of words explaining what the colors mean as well as lots of Rules that tell you what you can do with land.
The colors indicate different zonings that your elected Council has decided upon. So say, Residential housing may be Yellow; high density housing like units, condos may be Pink; and industrial Orange, whatever. So you can see at a glance how the town plan is subdivided into land use categories.
Just as you cant build a house anywhere you like, you cant have a farm or a factory in the middle of a residential area either. So the first thing you must do is find out what is the Zoning of the land you own or are thinking of buying. Getting land Rezoned is another issue altogether.
Lets assume your land is zoned for residential housing. The Town Plan will tell you all the requirements you have to undertake for land subdivision. It will tell you the minimum Lot size allowed in a residential subdivision. It will tell you the distance in feet or metres you have to Set-Back each lot from the road, either internal and/or external, as well as the side boundaries of your land.
Now all that seems a bit complicated, but dont worry, there are professional land subdivision experts who will do all this work for you. Depending in what part of the world you come from, you will engage either an Engineer in the USA or a Land Surveyor in Australia, New Zealand, UK or Ireland to prepare you land subdivision plan.
Always engage one who does their main work in your area, because these are the professional where local knowledge is very important. They will know about soil conditions in your area, because they may have done several land subdivisions in the area already and completed soil testing.
They will also know about the provision of utilities like water supply, electricity, gas, telephone. All of these impact on the cost of your development. For example, if water reticulation is not available on your road frontage and the nearest water supply is a mile away, then you may have to pay for the cost of piping water that distance.
It is vital you know this information before you commit yourself to land subdivision costs and so the Engineer or Land Surveyor are very important not only at your investigation stage, but also when you proceed with the land subdivision planning application preparation and lodgment with your Local Authority. These guys will do all that work for you.
So what does all that add up to?
Yes, you should go the Local Authority in your area of the world that handles Town Planning and study their Town Plan. You may even be able to get a photo copy of that area of the plan that concerns your land. Read the local By-Laws about the type of land subdivision you plan to do.
Next, if you dont have a recommendation as to which Engineer or Land Surveyor to use, do as I suggest in my e-book, Residential Development Made Easy, go and interview several of them in your area. Remember, as you are low on experience, the interview is your opportunity to find someone with whom you feel comfortable on a personal level.
Do they talk down to you and treat you as though youre a mug? Are they information givers? Do they explain things to you? What land subdivision are they currently working on? Where is their most recently completed land subdivision?
You dont have the expertise in the profession, so use you own instincts. When you find one that suits you, Do Not start off your relationship, by attempting to haggle over the professional fees he proposed to charge you. If you have interviewed several professional you will know the range of fees charged, BUT you do not know the extent or range of work the firm has to carry out.
So to haggle with a professional based on such skinny information, tells the professional that they should avoid you by a mile. I have developed over $1.2 Billion worth of real estate and have never in my life haggled over a professional fee and the reason is simple.
First: I believe everyone is entitled to a profit from their endeavors, provided they do a good job.
Second: If you land subdivision financial feasibility study is so marginal that you have to save a few thousand dollars by screwing the fees of your professional consultants, then either you have a bad development or you are just a bad employer.
Third: I believe in incentive. I prefer to pay a guy more than he asks. Guess how he performs for me as opposed to clients who dont.
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So why should you invest in foreclosures? In the long-term, its for lifestyle and financial freedom.
I do not define success in terms of winning or losing, but rather by whether I am challenging myself to be the best that I can be. One of the reasons I left my 9-5 corporate job, besides getting laid off, was because I wanted MY OWN lifestyle. I wanted to create my own lifestyle for me, my family, and my friends. I wanted to become a champion, the best at what I did. I believe that anything I set my mind to, I would be successful at that endeavor.
However, my biggest problem in working for a company where I was not the boss, the president, or the owner, was that I could not set my own schedule. I would not be able to go skiing when I wanted, play golf, or travel when I wanted. I was a terrible employee because I wanted to do things when I wanted to do them. And today I dont want to be accountable to anybody, except myself and my family, and the people that are counting on me to create real estate transactions.
Dont get me wrong. I was pleasant at my jobs, and I showed up, and I produced revenue. But the reason that I think I was a terrible employee was that I only wanted to work just 2 to 3 weeks a year. To me, a JOB means Just Over Broke and my time was not my own time, it was my boss time.
When I first started in the real estate investing business I had to ask my wife to give me a chance to make this work. I had a severance package, so I had three months to move forward. When we cashed the first check of $8,000, I took $4,000 and took my wife to Paris, a place she always dreamed of going. That helped tremendously in my pursuit of this business.
Now that I have established my business I take off one week for every six weeks of work. This gives me five to eight weeks of vacation per year depending on how my deals are going. I use this time to connect with my family, vacation, work on other projects, and just go out and enjoy life because isnt that what it's all about? If you're working so hard that you're not enjoying life then you need, in my opinion, to rethink your priorities.
My 15-yr-old son Nick and I go to hockey games, football games and other things that a 15-year-old and his dad can do together. My 6 year old daughter Chloe and I go skiing in the Rocky Mountains of Colorado where we live and we do it 10-15 times a year. We go camping, take motor home trips, fly to Maui to go to the beach and much more. This is truly a life that I am designing.
My belief is we should constantly have to better ourselves, to acquire new skills, to refuse to be bogged down with the feeling of failure, inadequacy, or that L word--loser. In my opinion, the losers of the world are those that never try. I would rather work with somebody who has tried 10 different businesses and failed than somebody who has worked 30 years successfully for one company and achieved moderate success.
When are you finally a financial success? Only you can answer that question for yourself and your family but to me the answer is when you can totally financially support yourself without having to show up for work. When you can do whatever you want, whenever you want, with whomever you want, anywhere you want, anytime you want to do it, as much as you want to do it, then you have reached financial success. That is the time that passive income is really working for you and your dreams are becoming a reality.
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If you've just bought a house, you may be able to relate to a fascinating essay in Maya Angelou's book, Even the Stars Look Lonesome.
When Ms. Angelou moved into a designer house in California, she says, nothing worked. Her pictures didn't look right on the walls. Cakes fell in the oven and curtains fell off the rods.
The house, she concluded, hated her. And it wasn't much consolation to realize the house hated her husband, too.
What I want to know is, how could she tell?
Let's face it, most houses hate their new owners. They have adapted to the rhythm of one family and resent being sold.
Like most cats that you rescue from the pound, your house probably believes, "If I'd waited awhile, a better owner would have come along. So I'm going to make this one's life miserable."
When you move
Those who are trained in modern research methods will be skeptical, but there's plenty of evidence. Everyone knows what happens when you move into a new house.
"You'll see a lot of repair services in the first six months," I was warned. "When a house hasn't changed hands in five years or more, lots of little things will happen when you move in."
Now, you'll notice this doesn't happen when you rent a house or apartment. Some friends of mine rented a house while they saved to buy their own property.
For two years, the refrigerator purred and the air conditioner hummed contentedly. The plumbing flowed silently and the insect life remained hidden. Encouraged ("see, a house isn't so bad after all!") they took the plunge and bought their own home.
I'd like to say they're doing great but in fact they've dropped out of sight. They can't take phone calls any more. "Sorry, we can't tie up this line. We're holding the phone open till we hear from the handyman..." Or the pest control guy, or the electrician. They considered Call Waiting but were afraid to jinx the only object in the house that seemed to be working.
If you seem particularly gullible, (e.g., the house senses that you're new to this game), your appliances may join the fun. I am absolutely positive the once-faithful refrigerator sent out a message: "How about this, guys. Let's really confuse everybody. I'll put out a leak, send the water over to the sink, and they'll think it's a big pipe in the wall. After they've poked a few holes they'll realize it's time to wake up that sleeping repairman!"
And one day my security system kept getting an "Open Door" signal even when the door was firmly locked. The tech found nothing wrong and it never happened again.
My lawn service person knew how to work the system: Let Them Know Who's Boss. After he cut back the hedges and pulled some over-aggressive vines, the bushes stopped sulking and started putting out nice flowers. They knew what would happen if they didn't.
Making Peace with the House
Soon you've emptied your bank account to create a peace offering -- a new floor or a paint job or a screen door."Every so often," I'm told, "you even get thirty days with no service calls. But after six months or so, the house gets bored and it'll start all over again."
One thing is certain. In your house's "Lose the Owner" contest, there's one simple rule. Whoever costs the most, wins.
For serious advice about moving, download Making the Big Move.
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