Looking for a builder in Seattle

[Spencer Bowen]

Hi BP community. First post for me... I'm pretty much just getting into the business. I have a few connections with rehabber and flippers, and I'm starting to understand what constitutes a good deal with them, but I have really no experience with builders/developers. (Is there a difference between a builder and developer?) If you are a builder/developer operating in the greater Seattle area, I'd love to learn about what you're looking for and the criteria you use to determine whether a deal is good or not. Are there any basic rules of thumb you follow? Any types of land/properties you avoid? Thanks for your help! Spencer

[Ryland Taniguchi]

Every builder has different criteria. Some builders pay up to 35% of the final sales price value in "urban village" here in Seattle on LR1, LR2 or LR2 zoned properties. In Seattle, I would be careful with anything that requires an SDR or Full Design Review. Better to find like an LR2 within 1/4 mile from public transportation that you can do a unit lot adjustment and avoid lengthy Design Reviews.

Usually if you have to add parking spaces, you are more likely to have to do a lengthy Design Review. Same applies if you are building 5 or more units or if your neighbor is  building at the same time.

If you develop in Seattle, make sure you know how SIP (site improvement plans like sidewalks, alleys, etc) works.

With a market crash coming soon, I'd be careful with development. When markets crash, many many developers go out of business because the carrying costs get so high and banks go out of business. 

Things to be careful with:

Cutting Trees (if you have a lengthy Design Review)

Moving Telephone Polls

SIP 

Personally, I only develop if I can structure the deal so I can get the land for free. I have completed 47 development projects and have 27 in process rift now; on every deal I have got the land for free either through a seller JV, creative deal structuring or subdividing.