Land development and new construction will be the next big things in real estate investing, as regular investors become tired of the flip and rental world, says Calgary-based real estate investor Darcy Marler of Hutton Radway Real Estate Mentors.
The author of four real estate investing books has created an online land development course to help investors learn about the many micro-strategies within property development that make it ideal for investors of any budget level, he says.
The course is for investors who have done a couple of flips or rentals and are having a hard time finding a property with a positive cash flow.
The course, Residential Land Development as a Profitable Investment, promises to teach real estate investors how to profit from residential land development. The curriculum includes pre-design, analysis and viability, land acquisition, financing and design.
The course will also include how to build a qualified team of professionals, how to structure deals and the process, which is the same across Canada and the United States and can be applied regardless of location, he says. Only some terminology may differ and how much detail is required varies from municipality to municipality.
But with a plan to follow and support during and after the course, investors won’t be left hanging. During regular Q&A Zoom, Marler will answer students’ questions and “get you unstuck as you move ahead with your own projects.”
Some micro-strategies include buying an old house on a large lot, demolishing it, subdividing the property and building new; changing the zoning or density of a lot then selling the now more valuable land or assembling lots and making them shovel-ready for developers.
As well as investors already in the game, the course is suited to real estate professionals who want to help their clients find the perfect property, or for those who want to get into investment themselves.
It’s no longer just about flips and rentals, says Marler, who hopes to educate people about legitimate strategies.
When the subject of land development comes up, most people think of properties out of the city and big developers, but smaller investors can get involved.
Marler provides a seven-page checklist so participants can hit the ground running. A live version of the course with 15 participants was held and feedback requested to make the curriculum exactly what the participants from across the country were looking for, Marler says. The feedback was positive 9/10 and 10/10 with no request for changes or additions, he says. Seventy students from across the country are now enrolled in the online course.
One couple from the original 15 moved from Calgary to Kitchener, Ont. and went through the course process steps. They recently posted on Facebook that plans are in place and demolition will begin soon, he says.
Marler has been a real estate investor for 20 years. His bio says he has owned more than 90 properties with 240 “doors” worth over $44 million. He offers a free PDF version of one of his books and more information about the course on his website and more information on his Facebook group.
Connie Adair is a contributing writer for REM.