The Real Estate Developer Architect

[Jimmy Dumas]

A few months ago I responded to a Request for Proposal issued by the Economic Development Office in Roselle, NJ to potentially buy a few city-owned lots. After an initial proposal and presentation, it appears that they may provide the opportunity to build 3 to 5 single family houses. Even though I am looking to primarily invest in multifamily properties that require rehabbing, I will not turn down what I think is a good opportunity.

Here are the numbers for one house:

Land: $7,500

Hard Costs: $135,000

Soft Costs: $27,000

Total Development Costs: $169,500

Proposed Sales Price: $225,000

Interestingly, after all of these years designing for investors and homeowners, I find myself in a position to not only dictate the parameters of the design but also to take part in the profit. I’ll keep you posted on that particular project.

So, I’m not sure if there are many architects here on BP. If you are, are you looking to develop single family houses? If not, what is stopping you ?

Please share your thoughts.

[Karen Margrave]

@Jimmy Dumas That looks like it might be a great opportunity for you to break into development. We are developers/contractors/brokers. Though our son isn't an architect, he draws all of our site plans, and preliminary designs, we then take to our structural engineer to do his part, and we have an architect that reviews and posts notes, etc.

Price ranges vary so much across the country, I have no idea what is expected in that price range where you are. We have designed and built homes that were considered starters, and luxury homes. Simplicity is always the key.

Good luck, keep us updated!