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How does subdividing lots offer a strategic advantage over fix-and-flip or wholesaling?
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Subdividing lots offers a low-risk, high-reward strategy with quicker capital generation.
How can familiarity with municipal rules benefit future subdivision projects?
Once familiar with a municipality's rules, the same process can be repeated for subsequent lots.
What financial goal can be achieved by selling two half-acre lots for $100,000 each?
The total potential profit from selling two half-acre lots for $100,000 each, after expenses, can reach approximately $99,000.
What should be checked regarding utility options during the subdivision process?
Utility access evaluations, such as water, sewer, electric, and gas, should be conducted, along with alternatives like wells or solar.
What is the typical size division of a one-acre lot in a basic subdivision scenario?
A one-acre lot is typically subdivided into two half-acre lots.
What are key considerations when assessing utilities for a subdivision project?
Key considerations include access to water, sewer, electric, gas, and potential solutions like wells or solar options if municipal services are unavailable.
Describe one advantage of understanding city codes in the lot subdivision process.
Understanding city codes allows for efficient execution of subdivisions and replication of the process across multiple projects.
What is the ideal price range for homes that makes them suitable for subdivision projects?
The ideal price range for homes is between $500,000 and $800,000.
From a builder’s perspective, how much profit can be gained from building a $700,000 home on a subdivided lot?
Building a $700,000 home can yield about $130,000 in profit.
Why are custom home builders a target market for subdivided lots?
Custom home builders can achieve significant profits by building homes on subdivided lots in desirable price ranges.
What is the potential profit range for a simple lot subdivision within 30 to 60 days?
The potential profit range is $10,000 to $50,000.
What is considered the fastest method to generate profits in real estate according to the notes?
Subdividing lots is considered the fastest method to generate profits.
How does the process of a simple subdivision start?
The process starts with a meeting with the city to understand local codes for single-family residential lots.
What is a potential profit for buying a one-acre lot and dividing it into two lots?
The process can potentially generate a profit of $99,000 after expenses when selling two subdivided lots.
Why might solar power be considered during a subdivision project?
Solar power is considered viable in areas where gas service is unavailable, providing an alternative energy solution.
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