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No More Land is Produced - Entrepreneur of the Week - Yossi Beit Yosef - Post 3

# Initiated week Yossi Beit Yosef # Post 3
"It's the little one - it's going to be big" - Invert Guta - Invert - "It's the big one - it will be small"

In a previous post we already said “no more land is produced”
But the closest thing to that - is to produce smaller plots - Subdivisions
Creating small plots produces a profit similar to a “kimono” that buys a large inventory of what the “wholesaler” separates into small parts and sells them at a profit.

There are two main types of subdivisions big and small or in the professional language Major Subdivision or Manor Subdivision also called Landdivisin the names may differ from country to country and there are some that divide by area size or number of plots - for simplicity let's stay with Major and Manor.

The difference is in the level of complexity and the level of risk, the division of Major requires the planning of roads, sidewalks, etc. and its approval is subject to a large number of committees, therefore it lasts longer and the financial investment is higher.
Since the laws differ from country to country - if you want to engage in this field - try to find the countries that facilitate
Example: Distributing 20 arcs in California costs more money and the approval process takes much longer than in Texas, while in California a public hearing is needed - in Texas it is not required for 20 acres.

How do you approach and how do you start? (The topic is complex for one post) But I will try to simplify it to 8 steps:

1. Find the market that suits you to work in (state and province that make it easier and not burdensome)
2. Define your criteria - and find the appropriate area for the division
3. First programming test (what is the minimum plot area on which a house can be built and in what area, density test allowed - how many houses is allowed to enter a hacker?, Front width test - the minimum width required in front of the road, which are the most important initial tests, any deviation will affect character The division and profit / loss is possible and of course the question is - will there be demand?)
4. Economic programming test
5. Initial meeting with the planning department (the goal - testing and approval of the programming you tested - it is advisable to attach your professional team
6. Establishing a treatment team (your team must include: a certified surveyor and / or civilian surveyor, preferably a realtor who knows the area well and an expert in the lands, a professional project manager - will save you time for self-study especially at the beginning, a professional lawyer who may assist you mainly in public hearings)
7. Preparation of plans (technical division into plots)
8. Advance meeting to submit approvals (bring a full plan and make sure with the committee that nothing is missing, make sure the process and schedules- we do not want to miss anything, we would like to get details of expenses and fees required to continue - even if such payments can no longer on us.)

After this meeting the application has to be prepared and if we have done it according to the book - there is a status to program approval and the plan goes out for a public hearing (usually the hearing goes through positively) and then the approval is received and recorded in the district books.

The process can take about a year or less - depending on the state and county, if you have not prepared the plan as required, it may take longer or even be delayed.
Tip: As part of the preliminary examination, you will investigate whether similar applications have been submitted in the past and check - why were they rejected?

At this stage it is possible to sell the project to a development company that will do the actual work of construction including permits and construction plans or continue the process independently, I think at this stage the continuation of the process was written in a post by Il Price members as entrepreneur this week so I will not go into detail here.

Another option is to sell parts of the project to various contractors.
The more we take on the project in money and time, the more profit we will make
Personally I prefer to shorten times, make less money, but make quiet and avoid headaches.
And pass the deal on

I am attaching a picture of an area that is currently in the initial planning stages - which is also a stage that can be taken out of and transferred to another developer in exchange for a not bad commission similar to Holsale.


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