How to Subdivide Land for a Profit

You might have bought a very big land and decide to make a big mall over it. This is really very tedious and you will find out very soon that there are some other ways which provides similar profit like subdividing the whole land in lots. Lots selling are quiet easy as compared to the mall outlets if it has not been built in the right area. Hence subdividing the land into lots has turned out to be the real business.

I would like to give example of a one of my friend who bought 100 acres of land. He saved for himself just three acres and started selling the rest by subdividing them into small lots of one to two acres. It took him six months to sell all the lots but he ended up making a very huge profit. This was really a great experience for him and since then he has never looked back. He has always looked forward. And you should not be surprised when I say that he is a billionaire now living a luxurious life in California.

If you buy a land which is situated by the road side then you will save the money of building a road in towards your lots. However this is not a big issue. However it is also true that the cost of your lots will be high if they are at roadside. You will definitely make a huge amount of profit.

If you decide to divide your land into lots then you will have to be ready to face some extra property taxes if you are doing everything in cash. Otherwise you will have to face the interest charges. There are so many plans which you will come across after dividing all the land in to lots. You can build apartments in each lot and then sell it in the market at much higher prices. Or you can just sell it for some amount and let the buyer make whatever he wants to make.

This process might look costly to you but it is really not costly and you will find it very economical. You are also saved from taking mortgage. However if you do want to make some commercial property then you will get all sorts of help while making the commercial property. You should keep it in your mind that when you will ask the lender to give mortgage loan on behalf of the commercial property then he will definitely ask you to sell some of your outlets in the commercial building and submit the approval of at least half of the building being sold out. Once you will do this you will bet the loan. However as far as lots are concerned you will find not difficulty. Hence you should really go for subdividing your whole land.