The REtipster Podcast | Real Estate Investing

Strategic Subdividing: Chuck Dreison Talks Funding, Experience, and Philosophy

May 07, 2024 Seth Williams Episode 183
Strategic Subdividing: Chuck Dreison Talks Funding, Experience, and Philosophy
The REtipster Podcast | Real Estate Investing
Chapters
1:03
Introduction to Subdividing with Chuck Dyson
3:16
Chuck's Career Journey: Marine to Land Investing
4:09
Transition to Subdividing and Expertise Development
5:21
Initial Subdivision Experience and Learning Process
5:41
Importance of Surveyors in Subdividing Projects
7:52
Variation in Subdivision Timelines and Hold Periods
8:33
Geographic Scope of Chuck's Land Business
9:01
Managing Remote Subdividing Projects
10:39
Focus on Subdividing in Arizona
12:47
Typical Costs and Timeline of a Subdivision Deal
15:36
Addressing Water Access in Subdividing Projects
17:30
Focus on Minor Land Divisions and Risk Mitigation
19:08
Balancing Zoning, CCRs, and Topography in Subdividing
22:43
Determining Demand and Market Research for Child Parcels
23:52
Acquisition and Disposition Costs in Subdividing
24:16
Factors Leading to Extended Subdivision Timelines
26:26
Financing Strategies for Subdividing Projects
27:55
Evolution of Chuck's Investment Fund Structure
28:29
LLC Structure and Decision-Making
29:55
Transition to a Unified Fund
31:24
Importance of Communication with Investors
33:01
Preferred Return and Fund Performance
35:39
Management Fees and Additional Costs
38:19
Autonomy and Decision-Making as Fund Manager
42:41
Finding Trustworthy Investment Opportunities
45:14
Researching and Vetting Investment Operators
49:49
Comparing Land Fund with Conventional Real Estate Funds
51:28
Importance of Compliance and Licensure in Lending
54:21
Fear of Failure and Lessons Learned
55:29
Source of Pride: Family
56:31
Hypothetical Scenario with a Windfall
57:54
Privilege of Real Estate Ownership and Impact on Families
58:59
Connecting with Chuck Dryson at MeridianREI
More Info
The REtipster Podcast | Real Estate Investing
Strategic Subdividing: Chuck Dreison Talks Funding, Experience, and Philosophy
May 07, 2024 Episode 183
Seth Williams

183: I met Chuck Dreison this past year when I was looking for members of our community with experience subdividing land in different markets around the country.

(Show Notes: REtipster.com/183)

Chuck was one of the few people who raised his hand, and since then, Chuck and I have spent a fair amount of time together as he’s shown me the ropes of how minor land divisions work in his market (which has plenty of differences from how I’ve seen it work in other markets around the US).

One of the biggest things I’ve learned from job-shadowing subdividers around the country is that the expertise a person develops with subdividing in one state doesn’t always transfer to the next state or even the next county over.

I wanted to get Chuck on the podcast to talk more about his story and how his subdividing business works. I also wanted to talk about partnering with other land investors, either as the operator, doing the hands-on work, or as a funder providing the capital.

It’s a topic that goes hand-in-hand with subdividing in many ways because many subdivides are naturally bigger deals that require much more money to acquire and do the work of subdividing. As I’ve been developing a solid framework for how I fund land deals for other land investors, Chuck has given me some great feedback about what he’s seen in the industry and what he wants to see from the operator’s side.

Show Notes Chapter Markers

183: I met Chuck Dreison this past year when I was looking for members of our community with experience subdividing land in different markets around the country.

(Show Notes: REtipster.com/183)

Chuck was one of the few people who raised his hand, and since then, Chuck and I have spent a fair amount of time together as he’s shown me the ropes of how minor land divisions work in his market (which has plenty of differences from how I’ve seen it work in other markets around the US).

One of the biggest things I’ve learned from job-shadowing subdividers around the country is that the expertise a person develops with subdividing in one state doesn’t always transfer to the next state or even the next county over.

I wanted to get Chuck on the podcast to talk more about his story and how his subdividing business works. I also wanted to talk about partnering with other land investors, either as the operator, doing the hands-on work, or as a funder providing the capital.

It’s a topic that goes hand-in-hand with subdividing in many ways because many subdivides are naturally bigger deals that require much more money to acquire and do the work of subdividing. As I’ve been developing a solid framework for how I fund land deals for other land investors, Chuck has given me some great feedback about what he’s seen in the industry and what he wants to see from the operator’s side.

Introduction to Subdividing with Chuck Dyson
Chuck's Career Journey: Marine to Land Investing
Transition to Subdividing and Expertise Development
Initial Subdivision Experience and Learning Process
Importance of Surveyors in Subdividing Projects
Variation in Subdivision Timelines and Hold Periods
Geographic Scope of Chuck's Land Business
Managing Remote Subdividing Projects
Focus on Subdividing in Arizona
Typical Costs and Timeline of a Subdivision Deal
Addressing Water Access in Subdividing Projects
Focus on Minor Land Divisions and Risk Mitigation
Balancing Zoning, CCRs, and Topography in Subdividing
Determining Demand and Market Research for Child Parcels
Acquisition and Disposition Costs in Subdividing
Factors Leading to Extended Subdivision Timelines
Financing Strategies for Subdividing Projects
Evolution of Chuck's Investment Fund Structure
LLC Structure and Decision-Making
Transition to a Unified Fund
Importance of Communication with Investors
Preferred Return and Fund Performance
Management Fees and Additional Costs
Autonomy and Decision-Making as Fund Manager
Finding Trustworthy Investment Opportunities
Researching and Vetting Investment Operators
Comparing Land Fund with Conventional Real Estate Funds
Importance of Compliance and Licensure in Lending
Fear of Failure and Lessons Learned
Source of Pride: Family
Hypothetical Scenario with a Windfall
Privilege of Real Estate Ownership and Impact on Families
Connecting with Chuck Dryson at MeridianREI