Real Estate Developers & Custom Homes?

[Ronald Starusnak]

Hey guys, I am a General Contractor from Upstate NY. I am looking to get out of NY and it looks like we will be landing in the Bend Oregon area. The prices for pre-existing homes are through the roof and home prices in general are very high. We are able to build 2,200 sq/ft homes, higher end for under $200k in NY and I can't see anything that would increase our costs much simply by relocating. A 2,200 sq/ft home here we are listing for $350k-$370k, based on what I am seeing on Zillow in the Bend Oregon area, it seems similar houses are selling for 200k+ for the same product. I am looking for any information and input you guys may have on the market, what would a good area be for me to buy land and throw up a little house to live in?

I am interesting in connecting with investors in the area who have knowledge in real estate development or have an interest in being involved in it. A properly built home can result in an excellent profit for the developer. The developers I am working with here, for example on the next home we build; his cost to have us build it will be $260k, he has $10k into the property now, probably $20k all in. The home will list for $365k, giving him a big profit. Our average turn around on a new build is 3-3 1/2 months and we can run 2 builds at a time.

[Jay Hinrichs]

Originally posted by @Grayson Graham:

Hi Ronald,

I work in real estate development and construction finance, I have only been at it for a couple years now so Im no guru, but I will do my best to answer your questions!

First, you should get connected with the Central Oregon Builders Association, they are a great resource for local home builders. Membership is only a couple hundred dollars a year and they will get you connected to the local industry. They facilitate cooperation with the local government on permitting issues, organize pro-builder political action, keep a database of local subcontractors and host a bidding platform, and they put on the annual Tour of Homes which could be a good way to showcase your work when you get settled in here. Their website is www.COBA.org

Regarding the cost of construction in Central Oregon, I'm not here to tell you what you can or can not do but I will say that I don't know anyone able to build here for under $90 a square foot like you are doing in NY. In the last recession we lost a lot of our trades people and the workforce hasn't quite caught up with the market again, this drives up labor costs. The median home price in Bend is $450k and I think theres a strong market for new homes around that price range.

Redmond Oregon is Bend's sister city and generally has cheaper land and lower home values. La Pine and Prineville are other nearby markets you could look into.

Tennant Developments currently has lots available in some of our neighborhoods, Hidden Hills (South East Bend) and Canyon Rim Village (Redmond).

Please don't hesitate to reach out if you have any other questions, I will do my best to answer them!

do keep in mind lots are 75k to 200k in these areas.. and not sure SDC fees in Bend but over in the Valley ( Willamette) they run basically from 20 to 60k per house.. before you put a spade in the ground..