Colm Dillon says Hello

[Real Estate Development C]

Hello Everyone,


I was very happy to accept Dan's invitation to contribute to the Forum, having explained that my speciality is Residential Development and not investment.


However having developed $1.2 Billions worth, I admit to having more than a passing interest in ownership.


So where am I at?


I gave up developing properties and decided to teach individuals 'How To' develop residential real estate, so that perhaps they could be as fortunate as I have been.


Why give up developing, I hear you say?


My answer - why keep on - keeping on.

Life is not a dress rehersal - you only have one go, and the only duty one has is to "provide for the family" - do no harm to anyone - and live a fulfilling life.


Fulfillment for me was to "teach others how to do what I do, without the pain."


I wrote an e-book myself, "Residential Development Made Easy" based on my 'real development life' - built a web site myself, that has reached the Top 1% of web sites, and my e-book is selling in 63 countries - all this since launch date October 2003.


Most of my time is happily spent helping my readers, by answering their questions and helping them out on understanding things like project cash flows and feasibility studies.


I am associated with no other real estate Forum and hope to add a few articles from time to time that may be of interest.


As I said to Dan, my subject may not be of interest to this Forum, but I offer it anyway - I know the number of 'views" will tell the story.

And now I leave you with a lovely story about 'mind conditioning."

"A mother and her five year old son were at the local shopping center after the last Para-Olympics, which has been shown widely on TV.

Suddenly the young five year old let go of his mother's hand - raced over to a man in a wheelchair and with a beam on his face said,"what sport do you play?"

Bye,

Colm

[CharleyB]

Mr. Dillon;
Welcome to our family.
Your information is INDEED welcome here, particularly to me, because I have been thinking about developing a nearby parcel of land into high-end homes. My oppinion is that it will fit in well with the over-all development of our "town" in the long term.

I'm trying to think in terms of 10 years not 10 months.

Being an engineer/builder for many years I am excited about taking a development from raw land to sell-out. My career has taken me through many different types of developments but only in a "service" capacity not as a principle in the projects.

However, I have about a year of work on the first phases of devleopment here in our historic town that we now own. I have prepared a preliminary plan for that process.

I think many of the development techniques required in land development will apply here in our properties so I'm looking forward to reading your information. My wife and I have made the decision to take our project to the next level, with the help of some investors, instead of just selling it off.

If you have time give my project a look. Much of it is posted here.
All the Best,
CharleyB
www.rockyfordinternational.net

[Real Estate Development C]

Hello Charley,

I did have a look at your site - congrats - it looks great and very easy to navigate.

Sometime I get questions from readers - I always change the names and places for confidentiality, but sometimes the topic may be of interest to others.

As you are contemplating a subdivision I thought I would include this letter as it addresses the All Important Matter of MARKET RESEARCH.

I hope you find it interesting.

Bye,

Colm



Hi Colm,

My grandmother is selling her house and 40 acres for about xxx,000.00, do you think it would be a good investment to buy her land and sell acre lots?


How much money does it take to get things started to develop these lots.


Thank you,


C
------------------------------------------


Hello C,


Sorry for the delay ... problem is I answer all my own correspondence and I'm only a two fingered typist.


The answer to this question is quite long. I have answered this type of question before for people, so I am going to search my files for you. Read between the lines to get the answer you need, because not everybody issue is the same. But it basically comes down to this:


LAND IS ONLY WORTH WHAT YOU CAN DO WITH IT - so find out what the ZONING of the land allows you to do under your Local Authority Regulations.


In some zones you can only build a house; some zones allow condos; some commercial development like shops & offices; some industrial buildings - you see where I am going? Your land zoning tells you.


Let's say the 'land use' is changing in the area in which your grandmother's land is located.


Like it's on the city border and is zoned farming, but the residential development is moving towards the farm, due to demand.


Then you may be able to apply to the Local Authority for a rezoning of the land from say 'farm use to residential use ... this takes time and money and professions services.


So the question takes a bit of answering ...


Land subdivision is by far the easiest way to start in real estate development ...


I hope that does not insult anyone who has done a subdivision, but subdivision is like buying a large 'slab cake' and cutting it up in slices ... each one big enough for each customer to feel that they are getting good value for the cost.


I didn't say that they weren't profitable ... 'cause they are, but the skill level is not as demanding as actually constructing some group accommodation on a site.


OK, that said, what have I got to say about helping you do a real estate development subdivision?


First of all it follows the same process and procedures as set out in my ebook, it's just that the 'product' is different and you engage different consultants.


But getting back to basics, just like producing any product for market, you must carry out some market research.


You must know the size of housing blocks that are in demand and selling in your market sector.


Market Research: The good news is that there are many things you can start doing 'right now.' In my ebook I get you started immediately on your own 'Market Research.'


I tell you to turn this activity into a pleasurably experience ... but one that is carried out regularly and with a system behind it.


For example as you are going to subdivide some land in a specific location, I want to visit every subdivision development, not just when it is finished ... I want you to see them at several stages during of construction.


These development show you the best the current market has to offer. Now your job has several facets to it, one of which is to not only assess the current opposition's product, but to come up with ideas that will improve your design.


It is no use just repeating what is already being offered in the market. "Me To's" are not good enough ... this is where you add you're own brand of personal magic, that reflects your personality.


For instance, you might decide to create a special permanent street entrance to the subdivision. It might have special 'cobble' road surface, with a curved natural stone wall on both sides, all topped of with a subdivision Name.


You only 'form' these ideas by KNOWING your opposition's product backwards. By feeding your mind on this stuff, your subconscious takes over, and you start creating.


So you see this is just one aspect of the work you will do ... but I'll just teach you to do it in a structured and more disciplined way.


The lot yield per acre will be determined from this work ... so get it right.


Next, the shape of the land you want to develop is important. Why?


Remember somewhere else I talked about Development Applications ... well embraced in that whole package are rules about 'setback' requirements from boundaries.


That is boundaries from the entire perimeter of the whole site PLUS setbacks from each home that is built on a lot ... so many feet from the front, side and rear boundaries.


In addition there will be a requirement for internal subdivision road-width. So if you think about all that and you are considering buying, what we sometimes refer to as, a hatchet block ... a long handle of land leading from a main road frontage, that opens up into a rectangular shape.


Well, staying with the hatchet analogy for a bit longer:


. Is the handle wide enough for the
internal access road, as per Authority
Rules?


. Is the handle to wide i.e. after the road
is designed, there is wasted space you
can't build on?


. Once the road enters the rectangular
hatchet head and allows for a right and
left turn, do the proposed lots have a
marketable depth as well as width.


So you see, once again, even though real estate development subdivision is the easiest of the styles of developments you can undertake, there is still the 'right way to do it, as well as the other way.


Hope this information helps you.


Colm Dillon

[Dan Auito]

Oh Colm, I think you have the readers attention at this point :eek: Sometimes it takes a while for people to come and find posts of interest but once recognized they come back to them often, so patience pays as threads begin to take on meaning to their specific groups.

I personally love having your perspective in this arena and consider it very applicable to our forum and the members who are here and will be coming along as the days go by.

Great stuff! Charley B here alone, will keep you answering up on a frequent basis!

You belong here Colm and everyone knows it! :SM040: :SM128: :SM120: