My Latest Development Project? Land deal Samuel Leeds
Hello there. My name is Samuel Leeds, and I am a property investor as well as a property guide.
Today we have come for a property development project, and we are here to see a piece of land whose owner we have been speaking to for a while.
I found this property deal with the help of my wonderful colleagues at my company that I have co-founded with my two brothers, and so far, we have planned that if we do buy this piece of land, we will not only property manage it but also develop it, and that might or might not be as a joint venture, we will look in the details of that later. At the moment, we have just come over to inspect it as I firmly believe that it is absolutely imperative to look at the property yourself first to gauge the area, the location, and the condition. And because I know that a lot of people have their eyes on this particular property, I won't tell you exactly where it is, but I will tell you this- it is beautiful and a great deal if I do manage to get it. Because even while I am here to inspect it, I have had multiple people drive up to me and ask me about it, mistaking me for the owner of this land, and I don't blame them. It's a great bargain.
And to ensure that we do get our hands on this land if we like it, we got In touch with the owner directly instead of involving a third party, and if we like it, which we do o far, I am going to make an offer immediately and take it up with the owner as quickly as possible. As of now, the figure we are working with is £200,000, which is the buying price for this land. And we can make a profit out of that by getting planning permission from the authorities and building a house on this land. We will need planning permission from the concerned authorities because the authorization that this piece of land had lapsed almost a decade ago, so we will need to renew that, of course, if we plan to build on it.
It is important to note here, though that the previous planning permission allowed the owner to contrast around 5 apartments on this land, where he could sell each apartment for around £200,000 each, giving the owner the GDV (Growth Development Value) of a whopping £1 million give or take.
If we take the planning permission now and buy the land for £200,000, the construction of 5 apartments would cost us an easy £400,000, which would still give us a pretty enormous profit even after taking out the standard contingency and professional fees.
On top of all that, the property is at such a great location that there is absolutely no problem with access, so even if I cant get the permission to build 5 apartments on this land, I know for a fact that I can still get the permission to build 2 semi-detached houses on the same piece of land since I know the planning consultants in this area. And I do have a pretty good idea of what they are looking to do in the future in this area. Of course, I won't be naming the area or the exact location of this house, but you can figure out that I know what I am doing. And the primary reason why I am so confident as to whether or not I will be getting the planning permission for what I aim to do is that, at the end of the day, it all boils down to whether or not your plan fits with the area and location of your property. Now when we speak of getting permission for getting authorization to build 5 apartments, I am not too confident because there were plans to build apartments here 10 years ago, which is why the owner got that planning permission all these years ago. In fact, there is an apartment block right behind this land, but do they fit with the area and the area plan today- I am not too sure. And as far as semi-detached houses are concerned, the entire lane is dotted with such houses. In fact, the street this site is on has semi-detached houses all in a row leading up to this property. So, I know getting permission to build 2 semi-detached houses will not be unattractive and would fit really well with the area landscape, so getting approval for that should be no problem at all.
Now for how do we plan on making the offer and buying this property? If we pay for this land in cash without planning permission, it would be cheap because it's the planning permission that's expensive. However, it does come with significant risk because buying it with cash would mean that there is a fair bit of chance that we might not be getting the planning permission. So, I am planning to propose to the owner that we buy this specific land via an option agreement. And by an option agreement, I mean having a contract that allows me to buy this land at a later date. So I will propose the owner to have such a contract made and signed where I have the option to buy this land in around 6 months which will give me enough time to get the planning permission for my property development plans. And I am hoping the owner agrees to that. I am not too sure what will be happening next, but I do know that I really like this land, and I have grand plans on what I want to do with this property. So, I will keep you posted on the developments of this deal. Of course, I won't name the area, but if you recognize this land or have a clue of what city this property is in, comment down in the comment sections below, and I will let you know whether you're right or not really soon.
I will be documenting my entire journey of this deal as always while also documenting my other plans and property dealing adventures, including my property development, managing as well as my student journeys. To stay connected, subscribe to my YouTube Channel and click on the bell icon to always get a notification whenever I post a new video.
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