New Subdivision Development

[Karen Margrave]

NOTE:  This is @Jay Hinrichs development, I am posting pics as he was having issues with his computer. 

To all that may be interested.. this is a 27 lot subdivision we (Jay Hinrichs) just broke ground on 10 days ago. There were two homes on the property they were both demo'd. We will be building the subdivision out with 1800 to 2200 sq ft homes some single levels as well.. Price point 299 to 350k.

Deal notes.

Land 750k

Soft cost 100k

Development all in 950K

Total 1,800,000 or 66k per lot.

We could spin these once complete to Horton or Lennar for 85k per.. however we can pick up builder profit on top if we build them out and we have bank financing on this at 6% Cash equity required 500k when we took the A and D loan down... This is the first A and D loan my bank had made since 06... So we feel very proud that they chose us to fund and get back into the market. Houses will cost 85 to 100 a foot all in to build.

My Wife is our Broker so we will keep that in house and try to sell as many as we can ourselves however it will be multiple listed with full BAC offered to procuring agents. Development will be done mid December depending on weather we can then pave.. Its not uncommon in our market to not be able to pave until middle fed.. The plat is running concurrently with the building of the infrastructure.

[Chris Adams]

Originally posted by @Jay Hinrichs:

@Chris Adams 

Who are you going to sell the duplex's to would it be to investors or .. Owners who will rent one side out.. ( which I really like for first timers getting into the game)

 Most of my buyers are empty nesters downsizing. They tend to pay cash. These would not be ideal for investors. The numbers don't work that well, trust me I researched that on Day #1 LOL.

Im certain I will get financing for more buildings as I prove I can move properties to the banks. I have financing on this deal with 2 different banks. 1 did the land and 1 spec, another does 1 spec for me. Both will do presolds. In the duplex game selling a pre sold means 1 side is still a spec. 

Here is a pic of a unit I just finished.