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    1-1. Buy and subdivide. - Electronic Edition

    1-1. Buy and subdivide. - Electronic Edition
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     An owner-builder called me recently, said he had read The Owner-Builder Book, and he had some questions. He said he worked for the Ford Motor Company, and that most all of his coworkers were owner-builders. He decided to take the plunge and bought a large parcel of undeveloped land. He knew that there was a stadium going in nearby, and figured the city had an interest in the land being developed properly. They did, it turned out, and put in roads, sewer, and gutter at no charge to the new owner. He said that just the day before the call he had sold two lots, and already owned his land free and clear.

     Many owner-builders have saved on land by investing in a large parcel and dividing it into smaller building lots for sale to others. Naturally this requires a big investment, but you could reduce risk by advertising for a partner who like you is looking for land and dividing the cost up front. In fact, the O-B above had a partner.

     Or you could just buy two lots when you find your land and build on one while allowing the other to appreciate for a future profit. Some owner-builders have bought an existing home on a good-sized piece of land and built on the open portion of land, while living in the home. Later they deeded off the existing house with a smaller yard and sold it to someone else.

     Be sure before you invest that local zoning ordinances allow you to subdivide and sell smaller pieces than you initially buy.

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