All Forum Posts by: Mike Salisbury

Congrats on the mentor relationship. What areas are you looking to invest in and what approaches will you be using? What is a good deal for you?

Thanks for the responses!  I did some driving for dollars today and will start a letter campaign and keep you posted.

@CurtDavis  If dbl. closing there would also be costs associated with transactional funding. I am curious about how a wholesaler with out knowing their exit strategy upfront can accurately set their fee. Double close and assignment bear two different costs- or do wholesalers always assume dbl. close to be safe?

I am wondering if anyone has targeting tear downs specifically. Ex. buy an off-market property in a upcoming area and resell to an Intown Builder for the valuable lot. The area would have to be hot and I think you could become branded in the niche of supplying buildable lots to Builders who don't have time to search for land. 

If anyone has done this what criteria would one search for on Listsource to find these teardowns? Thanks in advance.

Agree @Andy Collins, and then complain that contractors aren't helping him enough or wont call him back.

I am currently appealing on a rental in Gwinnett County. In Georgia, all sales count. REO and Shorts count as much as an arms length transaction. This is not well known but it has been established by court precedent.

Jason,

At last night's Atlanta REIA meeting a couple of folks had properties in Smyrna they were looking for buyers for. The main meeting is the first Monday of every month. It would be a great starting point to locate properties meeting your criteria or network with people who have done what you are seeking to do.

Pam,

You are talking about speculative building? This is a high risk/ high reward proposition. Knowing your market, your future homeowner's needs, buying the land at the right price and building efficiently are all necessary. I wish you luck, but this is not for the inexperienced.

Mike

Starting point is the zoning dept. The current zoning will dictate how many houses per acre and other constraints for roads, setbacks and allowable sq. ft. within the current zoning. Rezoning is costly but may be worth it to have a product (house) that is in demand but under-represented in your marketplace. Local experience will dictate what consumers in that area are looking for and if demand is being met.

Cost:$75 per sq. ft. is about right for suburban Atlanta. That is for construction costs- not incl. commissions, debt burden, permitting, insurance. Keep in mind that larger builders can go much lower (on cost) based on their volume and operational efficiencies.

Price Per acre: research recent, local, raw land closings of similarly zoned land - same as comp. for SFR.

Development costs: The infrastructure (Storm water, sanitary sewer, water, power and retention pond), curb/gutter, streets are extremely expensive. And eat into buildable sq. ft.. Followed by grading, engineering fees, and lastly bonds with the local municipality to ensure your work is completed to the county's satisfaction.

Sight unseen, Estate lots require the least amount of infrastructure if the zoning and market will allow.

I am willing to help with any other questions you may have, I am a licensed contractor and have looked at a lot of land.

I am a new RE Investor and relatively new to Newnan (3 years).

I am a contractor by day so I can help you with estimating and construction related questions.

If you would like to meet up I would welcome the opportunity to share ideas.

Thanks,

Mike