Kansas City Real Estate Development Advice

[Logan Freeman]

I am interested in how you get “started” in real estate development. I’m a licensed agent, have a decent network and a few leads on some land that I’m interested in developing. 

My question is, with all the moving parts: financing, permits, zoning, platting, building - how would you start thinking about and making sure all of the costs are taken care of and you’re not missing anything? I’d enjoy speaking with someone who’s done a land development project successfully and how they “vetted” the deal. 

Any insight or advice would be greatly appreciated, I can send more details of the projects as well. 

[David Jarvi]

*I have not successfully completed a land development deal, but am also interested in land development.  

I've heard the trick with land development is getting the right Land at the right price - 10% being a good target to shoot for. 

I've also met with a developer who said he looks to "double" on every deal  - meaning he is spending 200k for land/permits/materials/labor and targets a 400K sales price

In my area, 4 units+ is the trigger point for all sorts of additional complicated planning reviews and requirements, curbs/gutters, traffic studies, environmental reviews, etc...       so a triplex/duplex only requires the same review as a Single Family home.

So, I'm just building an excel spreadsheet with best/worst case budget #'s for each step in the process,  get an approved set of plans and then I'm going to shop it to 3-4 builders I already like in my area.   

I might just have them do foundation/framing/mechanicals/etc... and I'll finish it off with drywall, paint, tile, cabinets, etc...