All Forum Posts by: Patrick Rowe

@Steve Masica,

Ok thanks, that's my plan to get the approvals done and then shop it to tract builders. My problem is running all the soft costs numbers to see if is it's a deal worth pursuing.

@Tyson Taylor,

Ok thanks, I've already checked with the zoning and planning commission and confirm that it's zone for residential. My plans was to develop the 90 lots in two phases and sell the lots to a tract builder. Is there a formula or software you use to run your numbers to make sure this deal is viable? 

@manolo- Ok thanks for your input.

I've been in the home building business for about 6 years and know I'm interested in doing land development to sell lots to home builders. I had a engineer look at 56 acres of land and determine that I could get between 90-101 lots out of the 56 acres. I had a local real estate agent pull some comps in the area and she said that retail value of homes could sale for between $189-$199,000. The engineer also said that the cost to put 4600 lineal feet the street,curb and gutter would cost $2,070,000 ($450 lineal feet). This price doesn't include the utilities. Also the asking price for the land is $560,000. Also the property would not need to be rezone. Also base off the $189,000 homes sale price I would sale the lot for around $37,800 -$40,000. I would like to get some input from experience land developers on soft cost and also how would you approach this deal if you needed partners to do this deal.

@Christian- I have a relationship with the Vice president of a small community bank here in town. Also I have done several flip and New construction speci deals with this banker.

@mehran- Ok thanks, how much should I factor in for capex/ maintenance? The loan is a construction loan during renovation where you make draws on each phase. Then it rolls into a 30 year conventional loan. The property is a Fannie Mae property and they did some small renovation already, but they couldn't sell the property for retail. The has New appliances, floors and hot water heater. Also it has a new a/c condenser.

I figured I captured capital ex with the renovation cost,.

ok thanks, the neighborhood is a c class area. The property is not in a flood zone. I just wanted to make sure I didn't miss anything on the expenses.

I have a 3 BR 1.5 BA Under contract for $55,200 and the appraisal came back at $83000. My banker is willing to lend me $77,000 to purchase and make repairs with no money down. The property is a fannie mae property and it only needs about $5000-$7000 in repairs. I have a banker that's going to finance the purchase of the property and the repairs. There's similar properties on the market for around $98,000 -$100,000 but the banks appraisal came in lower than what I expected. these are the terms below.Let me know what you think.

Rent according to rent o meter, prop managers $1100-$1200

Loan - $77000 @ 5% for 30 years = $413.35

Management- $96

Vacancy-$ 96

property tax- $82

insurance $83

Cashflow $ 429.65

I contacted the agent about some comps on a duplex I'm looking at purchasing. The agent said she had to go back 2 years to find something. The comps she sent me were foreclosures and one of them were pending, sold. So how do I determine the value on this property with comps that are foreclosures and 2years old?