ᐅ Large plot of land with potential for additional construction – investor opportunity?

Hello everyone,
I am new here and have many questions, hoping to get tips and advice.
Our family owns a farmhouse that we fully restored in 1999, but the children are not interested in it.
So, we are considering how to market the property.
The plot is located in the village center, and the infrastructure is adequate. The nearest cities, Hamburg, Bremen, and Hanover, are between 30 and 80 km (19 and 50 miles) away.
The plot measures 2,600 square meters (28,000 square feet) and includes the restored farmhouse with an area of 20 m x 12 m (65.6 ft x 39.4 ft). There is also a red brick barn measuring 20 m x 12 m (65.6 ft x 39.4 ft).
In the garden, there is a building plot with its own access road.
There are some interested buyers for the farmhouse, but they want to purchase it as cheaply as possible and then renovate it themselves.
We are now considering possibly converting the barn into apartments ourselves and also building apartments in the garden.
However, we cannot manage this on our own since we have already invested a significant amount of capital into restoring the farmhouse.
Once everything is built, we want to sell profitably together with our partners.

Does anyone have experience with investors or construction companies suitable for this kind of project?

Best regards,
Helmut-Karl

Get in touch with the real estate department of your house bank. To prepare, find out the land value per square meter, based on the property values published by the appraisal committee of your district. Discuss with the mayor and the district building authority how much development would be possible. Also, check with the local municipality—if you align well with their ideas, they are more likely to support you. The bank’s real estate advisor will then talk with you about which investor might be suitable; they may even approach the investor themselves. However, their role, and their commission, is usually to market the project exclusively, and ideally also to provide financing.

Consider what would be feasible: vacation rentals? Is the location suitable? Condominium units? Rental apartments? A mix of everything?

Large projects like this are also interesting to charitable organizations. We just sold a 4,000 sqm (43,000 sq ft) site with a relatively small building on it last Friday to a social welfare organization that plans to set up a therapy center plus residential groups for people with addiction problems. The price achieved matched the value set by a prior appraisal.

Riding stables, such as model pony farms, could also be a potential investment. The proximity to Hamburg, Bremen, and Hanover suggests the region around Rothenburg Wümme is suitable for this. There are undoubtedly enough affluent city dwellers nearby whose hobby is horseback riding.

Just a thought... Karsten

Hello Karsten,
THANK YOU for your initial ideas.
Unfortunately, banks always want their money back........................
We had also already considered senior apartments or something similar, since the hallway (80 cm (31.5 inches)) is already developed enough that a café could be possible, and the existing terrace with 70 cm (27.6 inches) is suitable as well.
The house also has several sanitary and kitchen facilities.
I could also imagine your idea of shared living groups, but how do I find contacts?
Regards
Helmut

Helmut, I’m not talking about financing. Your part is the house and property, the investor provides the money, and the bank acts as an intermediary between you and markets the outcome. Banks have contacts with investors; they are their clients.

Housing groups and similar arrangements often happen by chance. In June 2016, I met a senior representative of the Diakonie in SH at a reception, small talk—oh, you do this as well? I happened to have a house with a lot of land for you. That sparked initial interest, followed by a property inspection. On our side, we conducted a valuation and made an offer, saying we would like to sell to you at a certain price... The process took a while, as they had discussions with funding bodies and had committees to involve. Well... last Friday we went to the notary. You definitely need a steady hand for this. Such buyers are sincere, but not very fast. But if you don’t get casual contacts with people like this, you have to approach them actively. How else are they supposed to know that you have something they might be interested in? Ask yourself which organizations operate in our district and what might fit into their portfolio. Karsten

Why should the end result be more than just selling everything right away? What is the added value?

That is a legitimate question that would certainly be asked and examined by a bank economist during a meeting. Karsten