Strategies for Sourcing Development Deals
Strategies for Sourcing Development Deals:
Identifying Potential Sites: Seek out under-developed sites with a lower Floor Area Ratio (FAR) than what the current zoning laws allow.
Engaging Directly with Owners: Initiate contact with property owners, introducing yourself as a developer or investor interested in acquiring their site. Offer an attractive proposal by suggesting a potential deal that eliminates the need for broker commissions. This outreach can be done personally or through a hired representative.
Utilizing Direct Mail: Send out letters or postcards that echo your direct conversation pitch. Ensure your message is clear, concise, and appealing.
Establishing Broker Relationships: Build robust partnerships with brokers who can scout potential sites and commence negotiations on your behalf.
Building a Strong Reputation: Gradually establish a reliable track record of successful developments. With time, this credibility will lead to opportunities coming to you due to your proven ability to perform.
Regarding phone numbers, services like @IDIData can provide this information through a subscription.
Before finalizing any deal, conducting a zoning feasibility study is critical. This will verify whether the site aligns with your development plans.
In Los Angeles, our primary focus is on multi-family sites zoned as R3, R4, or C.
When considering institutional deals in other markets, our strategy is to secure 18-month escrows (with potential for extensions) for unentitled land. This provides a window for possible zoning modifications.
We use Zimas to find sites within Los Angeles, and LandVision for sites located outside of the city.
These are excellent strategies and obviously work!