How to write your own Real Estate Land Development Proposal

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Real Estate Land Development Proposal
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The Real Estate Land Development Proposal Sample is an example of the use of the Proposal Kit documents for a real estate land developer.

This is a good example to follow for any real estate or property related business offering their services to a client.

Real estate agents, land developers, housing builders. Any business dealing with real estate development, building or land repurposing.

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Real Estate Land Development Proposal

Land Development Converting Farm Land into Housing

Murphy Construction Development MCD will meet all your needs and goals to develop acres of apple orchard into housing subdivisions.

The Objective

Develop land owned by Ted Siegel at the 4000 5000 blocks of 4th Street SE E. Wenatchee WA 98802. Permits and licenses. Short term investment money to complete development.

Experienced developer and general contractor.

The Opportunity

To develop acres of apple orchard into housing subdivisions. Gain zoning changes and permits from Douglas County. Access to liquid investment money for all phases of development. Find reputable reliable developer contractor.

The Solution

Hire Murphy Construction Development MCD to meet all your needs and goals. Allow MCD to review zoning permit and license paperwork before submitting to Douglas County. Partner with MCD to get short term investment loan. Contract with MCD for all phases of development.

  • Excavation
  • Surveying permits licenses
  • Water sewer power
  • Supplies
  • Sub contracting
  • County Assessments
  • Site construction homes
  • Liability Insurance
  • Sales commission to listing agent approximate
  • Interest on Loan

Standard Disclaimer. The numbers represented above are to be used as an estimate for the projects discussed. The above Cost Summary does in no way constitute warranty of final price. Estimates are subject to change if project specifications are changed or costs for outsourced services change before being locked in by binding contract.

Murphy Construction Development MCD has performed thorough location analysis.

Following are the results. 4000, 5000 blocks of 4th Street SE E. Wenatchee WA

Current orchard land just beyond Pangborn Memorial Airfield in East Wenatchee. The land is five miles from downtown East Wenatchee in peaceful rural setting. The acreage is still surrounded by orchard though several orchards in the larger vicinity have converted to vineyards.

Orchard land to the south was converted to Highlander Golf course several years ago thus continuing to increase property value in the area. Security in our rural area has never been an issue though we do use typical construction security measures such as portable fencing.

Infrastructure

The County will allow development with restrictions on the number of overweight trucks used on the county road. We must apply for special permits for access and we will be required to pay for assessments by the county including sidewalks and road improvements.

Demographics

East Wenatchee is rapidly changing city that makes up part of the Wenatchee Valley. Situated to the East is Quincy where Google and other internet companies are building because of cheap power. The job market has been climbing steadily over the past few years as our PUD has enticed tech businesses to locate here. The quality of life here coupled with an expanding job market and tight housing market have all combined to increase property values record 20% in the last two years.

Competition

The limited number of agricultural acres the county will allow to be re zoned and developed drives competition down in the selling phase of development but competition to get the permits is high. Because MCD has worked with the county on number of projects and done so in professional manner we generally get approval for our projects if we present them early.

Marketing

Marketing during both the development and selling phases is usually done by signing listing agreement with Realtor. Our analysis of the requirements for this project may result in certain risks. Analysis of potential risks is outlined below.

This list of risks is not necessarily complete list of all possible risks. No guarantee is made that all possible risks have been determined or if determined that the analysis is completely accurate.

Housing Market Slump Analysis

While local experts see housing markets drop elsewhere in the state the local market is actually increasing at record rates. The risk is that the rates won’t hold thus causing our homes to be sold for slightly lower than our forecast sales price of $425 to $465 and take longer to sell. However if the market continues to climb at its present rate we could also see profit increase. Understand that the market is flexible and that higher rates of return cannot be guaranteed.

Contingency

No contingencies exist for this risk. Higher than Anticipated Costs. With the rising cost of fuel and the high costs of lumber and steel housing supplies costs increase could impact profits.

Include foreseeable price increases in the budget. The detailed budget has included cushion of $100 for this contingency. Changes in Development Plans. Risk does exist that the development will hit unforeseeable roadblocks that will require additional county approval and development.

Plan for contingencies explore possible roadblocks and alternative plans and remain in open communication with the county. The detailed budget has included cushion of $200 for this contingency. Listed below are the disaster recovery methods we propose to ensure continuity of development. The development timeline will include some cushion for these potential problems.

Supply Failure In any development project the failure for supplies to show up on time can create disaster by pushing back timelines which could interfere with sub contracting and or licensing permits. MCD has worked with several large suppliers over the last two years. We order our supplies early so that if one supplier has an unforeseen problem we can buy from the next supplier.

We have never experienced all our suppliers being unable to ship something that we needed. Careful planning tends to mitigate the problems with supply failure. In the event of supply failure we do have alternate suppliers. Compliance Failure Inexperienced contractors can sometimes get into volatile compliance issues with county planners or engineers thus either delaying or even stopping development.

MCD has worked with all three county engineers and the county planners for the past two years. We are well versed on county requirements and have good working relationship with the county. Furthermore we supervise all sub contractors to make sure compliance is never an issue. In the event of compliance failure MCD would work immediately and directly with the county to resolve the issue.

Sub Contractor Failure Perhaps the most common disaster in development is the failure for sub contractors to complete their work on time thus leading to budget problems and sequential delays. MCD works only with select group of sub contractors. We require that our sub contractors have no other contracts open during development and we impose contractual penalties for work not done on time. In the event of sub contractor failure except for reasons beyond control i.e. thunderstorms fires acts of God etc we will enforce our contractual right to hire contractor who can finish the work if such contractor is available.

If no contractor can be found in timely manner MCD will exercise its contractual right to penalize the sub contractor monetarily. I enjoyed meeting with you last Thursday to discuss the possibility of developing your land. As you well know the profits on apple orchards have been remarkably low for the last few years with no hope for future gains in the global market. Douglas County is allowing so many acres of agricultural land to be developed each year in an effort to boost the economy.

The twenty acres that you own at the west end of 4th Street is prime location for development. Murphy Construction Development started business five years ago in the Wenatchee Valley after orchardists in our valley were hard hit by struggling fruit industry. We specialize in helping orchardists develop their land into housing tracts. We are proud of the service that we provide and we have been very successful with it.

We have now developed over acres in the Valley all with excellent turn around time and good profits. Please be aware that developing your land without the services of an experienced specialist could cost you time aggravation and most importantly large portion of your profits. Development is costly time consuming investment.

That’s where we come in. Our experience with Douglas County our knowledge of permit and license requirements and our proven ability to contract all phases of the development including excavation through completion in timely fashion make us the obvious choice for development partner. So far every development we have undertaken has been accomplished on time which generally means on budget. We pride ourselves on our hard work and not only our ability to get the job done but the ability to get it done right.

I’ve attached development proposal for you to browse through. It is by no means all inclusive but it should give you better idea what our vision is for the property and the costs and benefits involved. Look forward to meeting with you again.

Business proposal example Couldn’t begin

to count how many jobs we’ve gotten because of the professional look of our proposals."

Scott Munro
Midwest Heritage Homes
Length of Sample: 8 Pages

There are thousands of proposal topics to choose from in Proposal Pack. This sample uses the following set of Proposal Pack topics: Cover Letter, Title Page, Table of Contents, Executive Summary, Cost Summary, Location Analysis, Disaster Recovery Plan, Risk Analysis.
There are 200 complete sample proposals including this one in Proposal Pack.

The following related samples are also included in Proposal Pack:
This sample illustrates how to write the following types of proposals:
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This sample was created with Proposal Pack Real Estate #1

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Price:
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Code:
00810013020793-A184A184
 
 
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