All Forum Posts by: Account Closed

What would you like to know? Doing a 160+ house new construction and land development now

Will you be a partner or just loaning money for a certain interest rate?

I've got a subordinate agreement on a parcel to develop into roughly 200 homes plus or minus and to be done In phases.

Have any of you done any JVs with dirt contractors or found a bank that will finance phases of the devolpment?

Getting very close to having entitlements wrapped up here and I'd like to start building homes once development is complete on the first phase.

I don't see a problem with the upgrade as long as you are in control and use your contractor to do the work.

Be happy they asked for permission instead of asking for forgiveness!

 Yes I am. People complain about lumber prices and sure they are high but it's only increased the house price by $6500 per house. 2.57 or so percent... Inventory is low so price per sqft goes up and more than covers that.

contractors just complain too much.

This new subdivision, we bought 45 acres in a growing city that has very low inventory, new homes sell before they are completed usually within 10 days of listing, and the price per sqft has increased above $130. This neighborhood we are building on to an existing division and will have an additional 160 homes. It's a TON of work and costs a bunch of money to get going but deals are made everyday. I did a subordinate deal on the land and my bank is fine with that on the funding for the new construction loans.

I do roughly 17-22% profit on each home plus the land development profit.

Move to Arkansas and help me with this land development project. Entitlements are almost all wrapped up and its about time to start building homes. Ive found rental properties are far too many headaches to deal with. Did a few spec homes and decided thats the way to go if you can control the contractors.