All Forum Posts by: Gregory Wesley

I have purchased a 2 acre lot in a neighborhood that's been subdivided already.  I am looking to build as an investor.  I'm a broker and have working knowledge on the construction process but I've never done my own project.  I have investors who are interested in funding my project.  I'm looking to get a budget, detailed plans, and a schedule.  I'm thinking that I can take this info to my potential investors or to a lender if I cannot secure the funds privately.  Can anyone point me in a direction of where to start on getting my budget, plans, and schedule?  

Thanks for the info.  Is the $120/sqft to build based on hiring a builder or if I GC the construction myself?

I have a 2 acre lot under contract and I'm wondering if yall can share some of the pitfalls or things that I may be missing. The lot is located in an area where the lots have already been subdivided and cleared. There are 2 sections. One section has 2 acre lots and the other has 1 acre lots. There are homes already completed and homes that are currently being built. I have a friend who's currently building a home in this neighborhood. His plan is to build and sell. I hope to do the same. I have access to some private funds to complete the project. I'm paying cash for the lot. If for some reason, I cannot get the funds to build, I'm good with sitting on the land and either selling the lot down the road or building my personal home on the lot. It is located about a 35 minute drive south of Houston and I'm paying $65k for 2 acres. Holding cost for Taxes, HOA, and keeping grass cut are about $1750 per year. Thoughts???

Nice job! I'm a real estate broker and I'm partnering up with someone to do exactly what you are doing. We are forming an LLC and are opening a bank account with a bank who can help our needs. How are you finding your deals? I noticed you mentioned networking. What type of networking has worked best for you?

@Richard Ibeh

Thanks for your input.  I will look into these items and adjust.

@Mark S.  thanks for your input.  

@Mark S. thanks for your input.  When you say flood insurance is a huge cost.  How much are you talking?  After Harvey, I bought flood insurance and if cost me about $500 per year.  How does that translate to beach front property?  What type of cash flow did you see over the 2 years.  I got my daily rental from checking a similar homes rates throughout the year and the highest was $870 per night and the lowest is $335 per night.  I just went for the middle of those two numbers.  I know there's some risk of hurricanes but I would hope my insurance helps mitigate most of the costs associated with a storm.  I have a contractor who I've been doing projects with for years so he will take care of my repairs for a low cost.  I'm mainly trying to see if I'm way off with my numbers.  Right now with the input I've received, I'm at about $30K per year in cashflow.  I have a very flexible schedule so I can easily get down there a couple times a week or more if needed.  I have another business with all of the cleaning supplies and once owned a janitorial service so I can take my two sons down there and clean the place a couple times a week if I need to.  That will help my bottom line.

As I was raising my repairs, I was thinking I should have a home warranty to help cover those big repairs.  Thoughts???

 Thanks.  I will add supplies.

The mortgage payment is PITI. The home that I'm looking at is not owner occupied and I based my numbers off the 2017 taxes. I'll adjust the repairs and add in supplies.