All Forum Posts by: Anthony Caleca

love your post, I'm also in the development field as well, more towards new development but love seeing others have success in the field. Congrats man keep crushing it!

 Hey Allan yes we are GC ourselves we would do the whole development/construction process our selves from start to finish, it is not flat ground though a hill with sweeping views. $250 per sqft was a rough estimate of us doing all the work ourselves which we would be, and the $1,400 sqft average selling price was put together by multiple brokers in that area, thank you for your reply. So do you think my numbers are way off?

Hello everyone! So I am trying to do my first Luxury real estate project and it is in Los Angeles area. It is a single-family residential luxury home that is a total of 7800 sqft, which 5500 is living space and 1300 is garage and storage. So from my research I have done and the information I have gathered from a few brokers whom specialize in this area, the comps are averaging about $1,440/sqft.

Property price: $2,900,000

Development cost: $1,950,000 (estimate of $250/sqft multiplied by 7800 sqft home)

Total estimated investment: $4,850,000

Estimated sale price of: $7,900,000 ($1,440/average sale multiplied by 5500 sqft living space)

$7,900,000 Estimated Sale Price

$4,850,000 Estimated total investment

$3,050,000 projected gross profit

after paying interest on borrowed money, taxes, commission to broker and other surprise expense, estimated projected Net profit of 1MM- 1.5MM

• My question now is I have close to 30% of 5MM for the down payment for this development, what would be the best way or any way if there is one at all to raise the other 70-75% to do this project.
• What options do I have to raise or secure the rest of the capital for this deal?
• Please fill me in on any other expenses or important info I might be missing?

The property is already approved with permits to develop a 7800 sqft home,

Even though this is out first time doing our OWN luxury development, my father has about 20 years of overseeing ultra luxury developments from start to finish in NYC. Please any advice or guidance feel free to post any of your thoughts, thank you!

yea i think that might be my best bet, i have structured a portfolio (kind of like a resume) of all my fathers devlopment projects with specifications of Total Budget, actual budget used, time frame, accomplishments and before and after pictures of a lot of the major properties he has overseen and developed. And i will try and leverage that to try and form a JV with someone who will hopefully be willing to fund the deal with us. But my direction is so lost i dont even know where to look to get that. The more i read all theses major deelopers use private equity firms and hedge funds to fund their development deals, but at that level they are institutional investors and near impossible for me to go that route. What would i post on Craisgliost and BizBuy and sites like that kind of pitching our idea and what we have to offer

Thank you so muchf or taking the time to answer me, Money is not really what i would have to offer because I do not enough of it to be considered to piece togethor a deal like this to "have skin the game", thats why i am considerign starting on a much smaller scale on just a fix and flip until I can build up some more capital. In what i do have to offer is the development and construction side (not the investor side). My father who is my partner has over 30 years experience devloping everything from multifamily house's, apartment buildings and in the past 15 years or so all luxury hotels in NYC. He has been incharge of the whole devlopment process from start to finish from everythign from dealing with city agencies, budgeting, finding contractors and overseeing the whole constructions and devlopment process on projects like The NoMad Hotel, Crosby Street Hotel, and multiple luxury apartment buildings scattered across NYC and Downtown Brooklyn. The reason we are doing this is because my father wants to still do what he does but he wants to do it as the investor as well. He knows my love for architecture, design, and real estate and his love for constrcution and bringing a project from nothing but a thought to a real life building, we decided to team up and try to do one on our own.

Hey so i have posted about 2 or 3 months ago about getting into the devlopment side of real estate with my father, we where looking to devlop a small to medium size luxury complex in NYC (where we live) but raising money has seem next to impossible. I am not going to lie i kind of have no direction what so ever on how to raise or obtain the money for a project like this, so we decided to start off on a much smaller scale and start with single family home since it will require a lot less money. The thing is i am trying to research and learn how to raise money, i have reached out to numerous major Developers in NYC who all speailize in the projects we are eventually trying to get into, but either never get response or they agree to meet and then cancel on me.

what i have learned though is that nobodys going to give us money based just of an idea, people who are serious about giving money want to see exact projects and numbers, so they can perform their own due dilligence and see if the numbers work and the deal is actually capeable (which i understand completley) but the problem is no major broker will entertain the thought of wasting time to find deals or show us properties to someone who does not have serious capital to purchase them.

so pretty much brokers wont find or show me properties because i dont have money, and investors wont give me money because i do not have a solid property to show them. I am so lost and have no direction and do not know where to go from here. Thats why im trying to reach out to local devlopers to ask them questions and pick their brains. Please help be honest with me I do not mind critizism or advice. This is my passion and will refuse to give up so any advice or critizism helps!

 So let's say the numbers were true and the mortgage was $275,000 and the house was appraised for $435,000. I would be able to buy it for $275,000 and put it on the market for $420,000 if wanted

hello i have a question about buying a foreclosed home. So my finances sisters house is getting foreclosed and they don't care to much (weird I know) but it's on a nice piece of property on a quiet residential block and beautiful neighborhood. If I wanted to buy the house how can I go about getting it? 

Would I call the bank that is forclosing the property and see how much the mortgage is and how much is owed, and see if I can possibly satisfy it and transfer the house to my name. Is that how it works I never did this before.

Now another thing is from what I hear they  owe $275,000 to the mortgage company but the house has an appraised market value of $435,000. Would I be able to pay pay the mortgage company the $275,000 they are owned and pretty much be left with a house that has $160,000 "built in equity" or would I have to buy the house from the bank based off the market value

PLEASE HELP because I love the house and if it is possible to buy the house for the $275,000 that is owed to the market instead of the market value of $435,000 that it would make for an awesome investment in my eyes.

 Yes well I would use a conventional mortgage, both me and my fiancé have decent credit scores, I have a 750, and she has a 660. We both have good jobs with a combined income of well over 100K, we just don't have the 20% for a conventional mortgage

 Ok thank you for your help!