To design a desirable and affordable community that will allow prospective home builders to acquire all or a portion of the property at a point in time when they can swiftly and cost effectively begin building homes.
Understanding the needs of a residential home builder or developer, as well as their risk sensitivities, is a key ingredient to a successful strategy. LDP has learned, through many transactions with national and regional residential home builders and developers exactly what they are looking for when they are required to fill their land pipeline.
Maintain a constant awareness of current market conditions through regular contact with homebuilders, developers, real estate brokers and other real estate professionals who service these markets.
We target raw land, primarily focused in affordable market rate residential masterplan communities and with our experience and underwriting credit analytic capabilities we can add significant value. We use our extensive relationships, strong reputation and trust built with our partners and contractors.
A conceptual overview of the process for managing a property intended for residential development, from the time of acquisition until the asset is ready to be sold to a homebuilder. Our process is designed to extract the maximum value in the shortest period of time by entitling the project to the point where it has the highest value to residential homebuilders and developers.
Creating Value Through Land Entitlement
We pursue value creation with the acquisition of unentitled land ready for development.
Our team has substantial experience and skill in the acquisition and entitling of residential land. Disciplined underwriting by the manager’s team, together with the skills and experience required to enhance land value are expected to maximize the returns for the fund. The information that follows is intended to provide an overview of the entitlement process and timelines associated with an investment in this real estate niche.
The general elements of the land entitlement process are:
Formulation and Due Diligence
Preliminary Design and Architecture
City/County Review and Approval
Sale to Buyer
The diagram illustrates our strategy for value creation through land entitlements to minimize the risk and maximize the upside by focusing on the entitlement segment of the cycle, where the most control and return potential exists.
Understanding the needs of a residential homebuilder or developer, as well as what their risk sensitivities are is a key ingredient to our successful strategy. We have learned through transactions with national and regional residential homebuilders and developers what they are looking for when they need to fill their pipeline. Additionally, we maintain an awareness of current market conditions through regular contact with homebuilders, developers, real estate brokers and other real estate professionals who service these markets.
LDP utilizes state of the art technology partners that help make us one of the most secure & advanced firms in the industry.
Map Based Solutions
We strive to be transparent and upfront, we use all the available tools and data at our disposal to ensure your investment with us can thrive. For project selection and due diligence we use a GIS (map based) program developed specifically for the real estate market – this software gives us an in depth insight into the current and historical real estate market data for the target area, along with demographic information exclusively available to us as subscribers.
Using this software we can make informed and strategic decisions on where to select new projects, where to hold onto projects and when to exit a project.