Multi-Family Housing subdivision - Building from scratch.

[Sean Lynch]

Hi,

I am looking into building a multi-family subdivision/association and wondering if anyone here has any experience in larger scale development like this? Currently bidding on land available up to 40 acres and speaking with a number of companies that would help support the building of multi-family properties (Duplexes). Looking at moving forward with a pre-fab multi-family contruction once the right land is acquired.

I wanted to reach out to the BP community to see if anyone has ventured into this type of project? Would love to chat about potential pitfalls and obstacles, processes used, etc...Anything that could help with outlining what to expect.

The land I'm looking to buy will be clear for the most part so I would be able to come in and break up into plots, build main roadway in/out of association, will need utilities added to each unit etc..... Just wanted to see if I could run some ideas by anyone in this community who has explored similar investment options.

These will all be buy and hold multi-family investments that are long term rentals.

Any help or insight is helpful!

[Matt Devincenzo]

I'm personally a proponent of finding a local land development civil engineer not going to the govt agencies for info. I'm biased as that is what I do...but I can tell you I have had dozens of clients who received very poor info from City staff, some of which would have cost them quite a lot of wasted money had they proceeded based on what they were told. The problem you will have is you don't know if you're talking to the guy who knows his stuff and wants to help, or the guy that is a 'by the book' this is how it is guy. Either of them can give what ends up being poor direction. 

Something to clarify I think you're using the word 'subdivision' meaning neighborhood or development project...as in 'I live in XXX subdivision'.  But a subdivision is the splitting up of the property to sell into individual parcels. So I'd use a different term when you talk to people. You could say project, development, site etc otherwise it could confuse what you're asking about if someone assumes you actually want to have an approved subdivision of the property and therefor lots to sell.

In looking for a developer partner a builder may or may not be any help initially. If they are what I'll call a 'developer builder' meaning they permit and entitle sites and then carry them through building permits and into construction until completion, then they'll be familiar with the process and could help. But many builders are just builders, they know construction not land development etc. Many of them aren't even involved in the permitting process, they're involved in the bid and inspection process after permits are issued. So if you try working with them they'll probably have contacts in the industry to help get you through, but they don't actually know themselves and you are probably still going to have a lot of problems.