one of the fastest ways to generate profits in real estate doesn't come from fixed and flipping homes it doesn't come from going out and wholesaling and beating up the phones ladies and gentlemen some of the quickest profits in real estate come from Simply simply subdividing Lots I don't want to take this high level I want to keep this low level so for those of you guys who are thinking high level big subdivides with large subdivision roadways utilities and all this other stuff we're not talking about that we're going to keep this super super simple the way you can go in and generate between 10 and 50 000 in profit over the next 30 to 60 days if you have to go in for municipal approvals and you have to go in and do impact studies and you have to go in and do all of the full subdivide process for like a true big giant subdivision it's going to take you a year or longer to be able to go out and do that we're talking lower level quick lot turns where we subdivide them straight in half this is something that I've been doing since back in 2000 when in 2000 I was doing this as a strategic way to just generate a little bit more Capital it was a great way for me to be able to go in purchase lots that I was able to cut in half and reduce my build cost because of how I was buying the Lots then I found that it was so simple to be able to go and just cut these Lots in half that if I went in and bought one acre lots cut them into half acre lots the value to me as a builder was just as much value for a half acre lot is one acre lot because the resale value on the house didn't change whether I was building on a one acre lot or a half acre lot I was getting appraisals based on the house the square footage of the house and what that house actually was trimmed out like more so than the actual size of the land itself so I realized at a very young age is that if I just took one acre lots put them in half acre lots I made more money and I was able to sell them off to other builders to offset expenses and generate supplemental income to the building process along the side of building houses part-time and so a great way so if you're looking at generating capital in the next 30 to 60 days just from doing some simple real estate deals listen up this will strategically position you to be able to do just that now the subdivide process super simple I'm going to take this really entry level little real simple right now we're going to talk about a one acre lot the process is like this ladies and gentlemen you go in and the first thing you do is step one the first lot is always going to be the hardest lot for you to to do because you don't know what the subdivide process is so you're going to go down you're going to meet with the city you're going to find out exactly what the code is for single family residential lots what the setback requirements are how big of a house you could put on a certain size lot whether you can do Wells or septic tanks and if there's any restrictive covenances in that area now once you do this once in a given area you can just duplicate the process over and over and over again in that exact same municipality quality throughout different sub-sector areas within that municipality so if you meet with the city and you understand the basics of that code the codes ladies and gentlemen each code is only a page or two so this isn't like reading a 100 page book you can go down and every city has the codes available at your discretion right online you can print them out read them just like a book and so the biggest thing is meeting with the city and understanding what the requirements are and so in most municipalities even rural areas in the county you can take a one acre lot and simply divide it in half into a half acre lot now there's exceptions to that but I will tell you that that in itself is super simple and approved by almost the mass majority of the municipalities across the United States now you want to make sure you know what your utility situation is in early years I was pulling the electrical when I did that the city would come in and put water in right behind me and all of the data Lines phone lines and so forth and so on now a lot of times in areas that development is already going there's already Water and Sewer on the property lines and there's also electric and gas on the property lines now for some reason there's not water with half acre lots typically you can do a well okay now for sewer you can typically go in and do a septic tank now once you get under a half an acre those two items become very challenging to be able to do so we I use the one acre lot divided in half because that's what we did for so many years and we did this in multiple municipalities across the United States then if you have over headlines or underground lines you can typically run service to those lots so just make sure that you have service of electrical and gas to these Lots if you don't have gas nowadays it's really cool because you can either do solar or you can do the house 100 electric and then you don't even need gas so gas is less important but when you have gas it's nice to have because most Homemakers people like gas stoves ovens ranges heating and cooling systems because it's a little bit more cost effective than electric but if you do solar for some of you guys like in California and some of these areas where you have to strategically go in with energy credits electric and no gas is absolutely no problem at all so ladies and gentlemen once you figure this out you have a duplicatable system step two is just repeat the steps of one and two so that you can go out on sub to buy the land now what is the subdivide process actually look like you go in you buy one acre and you divide it into two Lots now if you follow our biland build house series what I talk about is I said never be in the media never go in and be competing with the mass Builders those builders that are building in the median of home buyers in the 200 000 to 400 000 range that is the median home buyer that constitutes for the mass majority of our home buyers across the United States but it's also the most competitive area to be in so when you go and you look for Lots look for lots for custom home builders generate the largest profits custom home builders like myself which I've been doing for over 20 plus years you can go in and you can actually do single family development over half a million but keep them under eight hundred thousand dollars now when you go in and you look for Lots in areas where homes are selling between half a million and eight hundred thousand dollars it's a win-win situation because you don't have to actually build the house you just have to strategically positioned the lot to sell them off to a developer or Builder that is building in that price range so that they have upside profitability for themselves as well you always have to leave room for the next guy to make a profit so once you get your lot you get a one acre lot you divide it into two lots you get a survey on the lot sometimes the landowner already has a survey sometimes they don't a survey is a few hundred dollars and then you go in and you pencil sketch the subdivide which we'll look at at the next page okay so when you pencil sketch the subdivide you take a one acre lot that looks like this right here and you simply go in and you divide that right in half okay now the lot might be off-site you know it might be something that kind of looks oblong and maybe the subdivide looks like this and you have to position a house right here in the middle of this lot and maybe you have to position a house right here in the middle of this lot and the house has a little porch or something on there a little like a little Pac-Man but you can go in and just divide the lot right where you want it to be separated and you could do that the reason it's called a pencil sketch is because when you go in and you do your City development meeting you'll usually pay a couple hundred dollars for the City development meeting and you could go in with just the survey and a simple pencil sketch of where you want to divide the lot before you spend money on a survey company so if there's a pre-existing survey it costs you nothing you just pencil sketch it with a straight edge ruler and then you simply go in with that straight edge ruler and you divide the lot and then the city development meeting happens where you show them exactly what you want to do with that one acre lot and where you want to divide it city is going to come back and give you some requirements they might give you setback requirements that you have to ride up for whoever buys that lot has to comply with they might say you have to have so much green space or they might have keep it really simple and say yes because these are really simple subdivides but whatever they do tell you you just comply with a simple request that the city steps forth and then you go in and you apply for your city council meeting once you apply for your city council meeting this ladies and gentlemen is where they ultimately give you your approval now each meeting is usually every 30 days so the reason I say 60 days is because typically you won't get a subdivide process done until 60 days into it you're going to originally have a meeting with the city development meeting and then you're going to have a meeting with the city council meeting and then you'll come in and gain your approval if you go out ladies and gentlemen and you simply purchase this slot in this day and age for a hundred thousand dollars the way you have to look at this is from a builder's perspective okay so for those of you guys are saying those lots don't exist so is as simple as this ladies and gentlemen so for those of you guys who are who are actually coming in and looking at this going you can't buy a lot for a hundred thousand dollars you want to bet all over I have an education program with hundreds of people in our education program all over the United States in every major city across the United States we have over 600 active members in our education program and they just go out and buy they buy build they buy a simple lot and they build homes on it so we have over 500 students that might buy Lots from you and so if you go in there's places like in Florida in Central Florida that Lots sell on average for about sixty thousand dollars for a pad site there's places on in California Believe It or Not by like Palm Springs or just outside of it where single-family Lots sell for as low as fifty thousand dollars there's places in Utah ladies and gentlemen maybe not ride in Salt Lake but in the outskirt areas where Lots sell for about 150 000 there's places right here in New Mexico where Lots sell for under a hundred but our average lot size cost is between 100 and one hundred and thirty thousand dollars and so all over the United States you can find a one acre lot for a hundred thousand dollars so if you find a lot for one hundred thousand dollars and if you built one home on this lot right here ladies and gentlemen to a builder he paid a hundred thousand dollars for that lot he bills a seven hundred thousand dollar house he's gonna make about a hundred and thirty thousand dollar profit on that build it's a successful day in his business now what if you take that exact same Builder you take this one acre lot but instead of going out and putting one house on it you subdivide it and you tell this Builder I have two lots they're half acre lots you get rid of that one and now you build two homes on it this is one this is two now you bought it for a hundred thousand dollars he made he sold it for seven hundred thousand dollars the law itself the size of it does not depict the value of that home haven't you guys seen big massive multi-million dollar homes on little tiny lots and then you've seen big massive multi-million dollar Estates on massive Lots those homes depending on the areas are all worth exactly the same because the way homes are appraised is based on the under air square footage or what they call heated square footage on in cold areas they call it under air and hot areas but it's the area under roof that's livable space and that's what banks look at as the value of this home not the lot size and so as long as it meets the setback requirements this might be 25 feet this might be like five feet this might be like five feet this might be like 25 feet you can build a house on that half acre lot you can get a three thousand four thousand square foot house on a half acre lot very easily but if you want to just build within a business model that's safe under 2 700 square feet now to a builder this lot is now worth 100k and this lot is worth 100k because instead of doing it on a one acre lot now he has two lots he could still sell that house for the exact same price the same 700 000 here and the same 700 000 here making 130 000 profit on this lot and 130 000 net profit on building a house on that lot you get to go out sell him this one for 100 and then you get to go out and sell him this one for a hundred your net is about ninety nine thousand dollars okay because it's going to cost you about a thousand dollars by the time you do your Survey Company you pay your Municipal fees but to Simply divide that in half you're going to make about ninety nine thousand dollars net profit ladies and gentlemen that's the quickest way to go out and generate large profits in real estate without having to pound phones and do um wholesale deals without having to go try to find a house that you don't know what's Behind the Walls you're gonna buy an over-inflated priced house put a bunch of money into it and try to sell it for another inflated price to fix and flip it ladies and gentlemen's too much risk you could simply go out buy a lot we've done this forever and it's been a strategic way to generate larger Capital quicker to help position ourselves for larger profits over the course of time to supplement our bills our income and ultimately add to our net worth and our real estate portfolio ladies and gentlemen this is how you compound your success if you like this content you want more content just like this then click and subscribe to our YouTube channel give us some love and give us a thumbs up and I'll see you next time don't forget I'm at the end of this video I'm going to put another subdivide video for you to continue educating yourselves on how to generate profits quick through the means of entitling and subdividing land we'll see you next time a little bit