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08-07-2012, 06:03 AM #1
Any developers on here?
I'd like to know if there are any land developers on here, I am curious about the process and would like some mentorship.
Specifically I'm interested in the process to legally subdivide lots, utility/road construction costs and extenuating factors, home builder relationships/partnerships, etc. I'm in a position where I'm considering trying to find some investment acreage now with the possible intent of using it as a long-term investment property to fund my retirement home (while being able to keep the best lot for myself and have a significant role in choosing covenants & restrictions that I can live with). Thanks,
DaveDave - pics!
08-25-2012, 04:43 PM #2Junior Member
- Join Date
- Jul 2010
Development of land is a fairly expensive and risky investment given the times. It is much cheaper and more productive to buy current properties and resell/rent them out. Dev takes millions and depending on how it is structured, you could get a 5% of gross sales of each parcel. I won't say I'm in dev, but my partners are. They are very picky on what they buy now and a few years ago, were bleeding so bad it didn't look good for them. They ended up nearly losing it all by trying to stay in the game for too long.
There are a lot of avenues to go here, development of houses? Retirement communities (this is still a hot one)? Condos? Multiunit houses (2-4plexes)? Commercial? And how much money would you be looking to lose? <-------always invest with the ability to lose it all.
The RE market has not yet seen its worst days....the commercial market is still coming down, but there are a lot of great buys. Just understand RE is a CASH business and you will need a lot of it to stay afloat. PM me if you want to give specifics offline.
Good luck. There is no better investment right now than RE though.....
Last edited by TMG; 08-28-2012 at 08:43 PM.
08-26-2012, 08:12 PM #3
Multifamily development is strong right now.
08-28-2012, 09:02 PM #4
Great thread, as I'm looking into the same path. Will taking a class on property management help in any way?Every road is a playground.
08-30-2012, 05:47 PM #5
Everything is cyclical and our nation has a lengthy track record of overdeveloping...multifamily is no exception and it's what you have witnessed in the last 8 years. All of the major REIT's and developers have stopped developing multi and are focusing back on single family.
08-30-2012, 05:48 PM #6
09-01-2012, 04:53 PM #7
cheap, I don't know anything about development and maybe Jim and give his 2 cents, but I met a guy at our local cigar lounge and his father is in development and what he does is build commercial buildings then leases them out to big companies. I told him I felt sorry for him given the real estate collapse a few years ago and he said "Dont be. Business is good". Maybe commercial is where its at."People don't buy what you do, they buy WHY you do it" - TED speaker Simon Sinek
"True independence and freedom can only exist in doing what's right." - Brigham Young
"Act as if... " - The boiler room