2 family development Milwaukee Wi

[Steven Nitschke]

Last year I developed a couple of side by side condos, and sold them without much trouble at all. These condos were 1400sq ft with 2 car garages and basements. 2bed 2bath. Building cost was roughly 110/sqft with a general contractor @ 4%. Lots were 35k/per

I have just recently bought a few more 2 fam lots nearby in a popular neighborhood in slinger wi, these lots were 79k/per. I’m looking to do the general contracting myself on these next ones since i have recently gotten my license saving me that 4%, also was thinking about not including basements on these next to save some $ on the building cost (realizing there is a retail loss in this) i think i can make up for that retail loss with the location being in a prime area in a great school district.

Basically I’m asking for any advice before i start on some good ideas on saving some $ to get that $/ft down even farther without making them look “cheap”, or really any advice at all I’m willing to listen and take the opportunity for some criticism before i get to far into it. Thanks guys!!

[Greg Dickerson]

Originally posted by @Steven Nitschke:

@Greg Dickerson thank you for the response!

I guess i didn't include enough background. I'm pretty involved in the construction process, and have been working in the trades for a number of years, i personally don't like the feeling/anxiety of not being able to be on the job site daily and trusting someone else to deal with aspects of the job. I suppose that is a downfall of me wanting to be a developer but i feel much more comfortable/confident being in the driver seat with the project, even if the ROI doesn't make sense saving the 4%. Thanks again for input.

 Steven - there is a huge difference between working in trades and running the whole project as a GC not to mention licensing, insurance, liabilities etc. You mentioned it’s the downside of you wanting to be a developer. Developers hire GC’s to build we do not act as the GC. If you want to go big and become a true Developer you need to learn to hire professionals an let them do their job. The developer’s role is to find the deal, determine highest and best use, hire the right architects, engineers, GC and realtors, arrange financing and lead the team to the finish line. 

It all boils down to your goals and comfort zone.