[CREI-Alliance] build-able lot

Hi - I am doing some spec houses in MD - I would say you should have your builder lined up - you may even want to consider a builder partner - let them do all of the work and you are the investor partner (esp if this is your first time) - make sure you get several development budgets prior to financing, too — I’ve set my loans up so I get funded for purchase, engineering, development, closing costs, carrying costs, building - as long as the # is under 80% LTV the bank will fund it all. You also may want to check on the time to get any permits approved, etc…time really flies and those dollars really add up when you’re carrying the deal! I have done the pricing of stick vs modular vs panelized - panelized seems to be the cheapest but more work than modular - mods are great now because they will build to your designs…plus they’re really fast…hope this is helpful! Nancy ________________________________ > To: CREI-Alliance@yahoogroups.com > From: thomas@tecsplace.com > Date: Mon, 19 Nov 2007 21:38:14 -0800 > Subject: [CREI-Alliance] build-able lot > > > I’m looking at buying a build-able lot. > > Here are the details… and please don’t let the Bay Area, CA prices > scare you off… > > Single parcel right now that can be divided to 3 parts. > > The seller has rejected offers for 2.4 and 2.3 for all three parts. One > parcel has an offer on it. > > It roughly costs 25,k to bring in water, sewer and electric. > > Building plans are approved by the city for a 2500 plus ft sq home with > approx building costs of 180/ft sq…. around 500k to build really nice > house. > > Estimated value at end of project 1.6m > > Estimated time frame 1yr. > > Taxes…. 1.25% of sales price 11,k/yr > > Loan of 1.3m @ 6.125% Interest only. > > Let me know if you need more info… > > I’m wanting folks thoughts about how long it would take to build, > carrying costs, exit strategies, would I be able to wind up with any > built in equity for the risk taken, what would you want to pay for the > lot(s), stick build vs. prefab, etc… > > Thank you for any ideas you can contribute. > > — > Thomas > > >