Need help putting together a land deal for a housing development in San Diego County

[Arthur Cook]

Hello BP fam!

I''ve been wholesaling in SD for the past 7 months and recently door-knocked a property in my hometown, Oceanside, and the seller is interested in hearing an offer. It is a big enough parcel to handle probably about 10 new homes, based on the surrounding neighborhoods. I'm doing my best to calculate an offer on the property but I need to connect with someone who has developed homes in the area and can help me put some numbers together.

Some of the numbers I know I need are...

1. Home builder profit percentage

2. House Build Hard Cost per Sq Ft

3. Cost to Develop the Land Per Lot

4. What can be expected for entitlement cost per lot

This is my first time doing anything like this, so would love to hear some thoughts on it.

Thanks!

[Caroline Gerardo]

1. Home builder profit percentage (10) negative to 20% positive given you are new I worked for Lennar infill division in the past. Questions you did not ask: Time period from architectural drawings, conditional use permit hearings, to approval in Oceanside- 2 years. If you are close to coast Coastal Commission -add 4 years 

Do you have a title report and as @Scott Mac said what is use history of subject/liens/underground/ recordings... I would add is your plan contiguous with neighborhood- similar square footage and height?

2. House Build Hard Cost per Sq Ft $300-$400 depends on your price point- luxury $600

3. Cost to Develop the Land Per Lot - $40000

4. What can be expected for entitlement cost per lot  $10000

What financing can you get on raw land for 4 years? 50% down and 14% carry cost with points

What are construction loan costs

Who is going to be on site with trailer and fence

Cost for curbs, gutters, utilities- need to know what's there now to guess

Do you have a contractor's license? Can you fill out all the paperwork or do you need to hire someone...

Architect, surveyor, legal and compliance, insurance, all the temporary things you need to rent and maintain, where will you source general labor, are materials for the houses you plan available in Southern California...