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Zeke,
I'm about three hours from you geogrphically. I'm just wondering how your market is doing down there. How is land selling vs. new homes? And are you finding investors pulling back right now (even though we know this is the perfect time to get in!) I have several projects that I'm having trouble funding because there seems to be a wait and see attitude out there.
Your thoughts?

Rise,
I wish those were the little things! Actually those are the backbone of creating a succesful investment package to present to investors. I look at the RE pages in the local and surrounding papers quite often, also just networking will produce some results as well as driving around.

With the so-called bubble (I prefer correction) you have to increase your verstility. I did pretty well with about 5 local projects all within the same county and actually within a 12 mile radius. I focused on smaller, easier to move projects, 7 acres, 12 acres, 16 acres.

However as an area slows you will find the need to take your money elsewhere. There was a recent article in a developers magazine out here in the west that mentioned 10 "still hot" areas in the country. We are looking to an area in Georgia right now, an area in the Northwest and a part ot Texas where we can do the same things we have been doing here.

Also, about the bubble....times like this ferret out the amatuers and the dangerous players that give legit builders and developers headaches. If you treat this as the opportunity it truly is, you won't find as many projects but the ones you do find will be quality.

In my immediate area right now there is a huge amount of inventory on the books so...I need to pull back or create something that stands alone. For instance, there are some 3000 lots on the market here but only a handfull are what I call "executive lots". these are lots with acreage, views, or great areas that command a premium. Whereas most of the inventory is standard 70 x 100 lots at 90k I have one project that will go online in about three weeks where the lots will sell from 175k to 250k and include a full fiber optic system and 100 mile western views. These will sell....different market, in fact I have 6 buyers lined up already.

Take it slow and be willing to say no...also, and I can't stress this enough...understand AND perform your due dilligence on each project. If the owner will not give you enough DD time in your contract DON'T DO IT!

Also, try to identify some key investors and their parameters before you find the project. This is easier said than done but, in the spirit of OPM, you need to do this. It may take you a year to identify one good investor, but that effort will pay off huge. And remember, rich people know other rich people....put in a call to Trump, I do. Some day he'll return it!!

Good luck....

Rise,
I am a contractor and developer. If you subscribe to the idea that there are several points at which to enter and exit a development investment between raw land and turnkey, then it is just a matter of due dilligence. Sometimes it is better to buy raw land and sell the lots to builders. I have bought projects that were ready for final plat submittal and sold them after lot construction. 10% of the work and 90% of the profit. Other projects are better served by building out the homes or townhome / condos, generally when the project was expensive early on. Getting your contractors license can do nothing but increase your versatility. As far as starting small, just do it, you'll learn as you go, we all do. Find a project you believe in, write it up and go hunting for investors. It may take 5 or 10 efforts before you get one to work but you will create a network of people that believe in your strategies and will become great resources for you in the future. My first deal took 8 months to put together but netted my investors 140% in 18 months and netted me around $500k. It can be done! An early mentor of mine said "someone, somewhere, will always give you the money you need", no truer words have been spoken....I always seem to land on my feet! Good luck!

Boy are you right. What a great opportunity to discuss our ideas and work together to educate the fringe investor who might otherwise be waiting for the next big growth spurt! I love to talk about this business...

I am a land developer and home builder in Northwestern Arizona. I have varied levels of experience and am always up for a discussion of our profession.

I believe heavily in the power of the Internet and think this is a great forum for not only information exchange but for networking and increasing the investment community base.

Now is the time to look into opportunities. While most are drawing back out of concern for the slowdown, sharp investors are ignoring the endless negative media rhetoric and preparing for the steady growth that will come from this correction.

Catch me here or email me with any questions or comments. There are few things (short of a hole in one) more satisfying than creating a community where raw land once existed. I love what I do!