All Forum Posts by: Kenneth Bell

@Sergio P Ramos

You can make a great living just developing losts and selling to big builders. I have a 35 unit townhouse site that we entitled and will probably sell. Concentrate on your development cost and keeping them down and the deal will pencil. Reach out if you want to discuss. Good luck!!

@Jay Hinrichs

I try to avoid historic districts at all costs. I am in the Charlotte market and surrounding, and I do everything from luxury $950k-$2MM to starter homes from $250k to $300k and townhome sites. Land has gotten expensive in Charlotte but the new UDO has allowed for expanded density on infill lots. I have looked at other coastal markets that are less expensive than Charleston proper. Are there any emerging areas near Charleston, since it is getting so expensive?

@Sergio P Ramos

Sounds like a great property. I may have missed it, but can you share the acerage a density? It is possible to develop the deal and not build anything at all. Land development and construction are two different disciplines. There are plenty of sites you can bid the vertical work through. Has it been 100% entitled? That would mean there is an approved site plan that includes roads, water, sewer, storm water, curb, gutter and any required buffers. This site plan would give you an idea of the needed development cost, which is usually what sinks development deals

@Trenton Miller

Hey Trenton,

Land valuation is the most important skill you will need to develop, and honestly, the only way to be better at it and not just take someone else's word for it is to truly understand zoning. Zoning are the rules for what can go on a piece of property and how it must go on as well. If you learn zoning then you can understand density, if you can understand density then you can reach a number for estimated gross development value. If you can get gross development value then you can figure what the most you can pay to make the site pad ready, do vertical and still make a profit. You need to be able to come up with this really before you spend money on a civil for plans that tells you it won't work. Density is also your friend. Thw more dense a project the better chance the numbers work. 30 inexpensive homes on 3 acres will pencil probably before 5 expensive homes will because you still have to spread your infrastructure across 3 acres. I am 100% real estate development in my business so these are calculations I need to make all the time. My best advice is understand zoning and density to make proper land valuation, then proper DD. I know more than a few people with land paperweights.

@Jay Hinrichs

I currently develop in NC. I focus almost 100% on my pad ready land cost to come up with profitable deals. 20% of gross development value is the most I will pay for land. That is the skinniest deal I will even consider. That will give me a gross profit of 20% minus holding and commissions. I look for density plays that can be executed in an infill setting. Density can really help the ROI on a development deal. 100% of what I do in real estate is development deals. I don't often see people talk about it very much on here at all. Does anyone else do 100% development besides myself. I am sure there have to be a few of us??

@Robert Ellis Gastonia NC, suburbs of Charlotte NC

@Jacob Sherman

The build multifamily has and * in Charlotte. They have made compliance so difficult that you should probably only do multifamily. Have you done one of these deals yet. I am looking at the possibility.

I have the chance to develop a 35 door BTR project that happens to be in an opportunity zone. Has anyone done a COZB and got equity from an opportunity zone fund?

@Nick Kurtz

Can you send me details for this project as well. I may be interested

 Hey Paul, 

First thank you for your reply. I can tell you are a bit more than a drunken sloth LP!! I thought about a possible preferred return of between 6-8%  with a catch up. I will take a look at the offerings you suggested. I would also like to connect with you if you are available. You seemed to have more knowledge than most on what LP's are looking for. I want to make sure I capture that as much as possible. I will shoot you a message if you don't mind?