How to Subdivide Property for Profit

Subdividing property is not as hard as it might seem. You must know a few things about the property, the borough or township, the potential infrastructure and local subdivision codes. But armed with that information you can subdivide your property and possibly turn a profit in the process. Here's how to subdivide property and try to realize a profit as well.

Difficulty:

Moderately Challenging

Instructions

1. Locate a large piece property for sale or auction that's suitable for being subdivided. Contact a real estate broker or look in the auction section of your local newspaper. Be patient and prepared because finding the right property to subdivide for profit may take months or years to locate.

2. Do your research before you buy the property. Once you have found some potential property be sure there are no encumbrances, such as back taxes, that make the land unprofitable to you. Take time to go to the property and walk around. You may find things like wetlands or other such undesirable characteristics on the property.

3. Read local subdivision requirements. Go to the local borough office and ask for a copy of their subdivision requirements. This will tell you what is required if you are going to subdivide the property. Most local governments require the developer to have utilities installed and to build a roadway so each lot has access.

4. Check zoning. This will affect how your property is used and sold.

5. Hire a civil engineer to subdivide the property. The civil engineer will deal with submitting all the required plans and will go to the local borough or township meetings. Once approved you can start the expensive work of putting in the roadway and utilities.

6. Start selling your lots to private owners for profit after the roadway and utility work has begun.