Thread: 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,

Dave

Dave,

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.....

Multifamily development is strong right now.

Great thread, as I'm looking into the same path. Will taking a class on property management help in any way?

Originally Posted by Name Brand

Multifamily development is strong right now.

No it's not. In fact, it's the next bust.
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.

Originally Posted by cheap

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,

Dave

Dave,
PM me if you like. I've developed 1MM+ sf of commercial and would be happy to chat in some free time.

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.