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The property will be controlled through a
purchase contract that allows for a 90 day
due diligence period, during which time all
monies are refundable. |
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due diligence (i.e. soil tests, environmental, etc.)
will be paid for by the targeted homebuilder but issued
in the name of the company and the Land Partnership
jointly. |
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the due diligence period, meetings will be held with
the municipal staff to begin preliminary discussions
regarding the feasibility of concept plans and densities. |
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the due diligence period, an internal study will be
completed to understand the status of sewer and water
as it relates to the site. |
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the end of the due diligence period, if a comfort level
has been reached by both parties, a contract will be
signed with the homebuilder for an agreed upon price,
before the earnest money on the original contract becomes
non-refundable. The homebuilder becomes responsible
for all planning, engineering, and municipal fees for
the life of their contract until the purchase is final.
In some instances these costs can exceed $1,000,000. |
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The Land Partnership will close on the land
between 90 days and 12 months after the due
diligence period ends, depending on the time
allowed by the owner. |
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homebuilder will be required to move forward with
the preliminary planning process within 90 days of
closing in order to insure an expeditious process.
MLI, as the General Partner will have full approval
rights over the plan that the homebuilder submits
to the municipality in order to protect the investment. |
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The land hold period is estimated to be 12
to 18 months from the date of closing before
the first take-down occurs. |
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