Real Estate Broker · Miami-Denver-Austin · Member since 2015 · 91 posts · 32 votes
Here is one for you - any help much appreciated.
Scenario - off market land deal. $700k for the land and the "plans". Estimated construction costs of $1.3m-1.5m. 9 units that can be condo or apartments. The condo's would sell for ~$325k/each.
How could one approach this?
1. How could I use other peoples money for the $700k?
2. They say the plans are 90% through the city almost ready for permits. Any red flags here? Why would the sellers decide to sell now?
3. And with the plans, what is next? I assume I have to use those plans to find a builder?
4. The $1.3m-1.5m would be a construction loan correct? Interest only.
Unapproved Plans? I would find out what the outstanding issues are. This seems like an unusual point to be selling. I would fact check what the seller says still needs to be done against the outstanding issues with the municipality zoning and subdivision boards.
@Bob Derwin according to agent the building plans are done and 90% through the city, just waiting on permits. The land and plans are a package at $700k. Then there are recommended builders in line behind these plans.