All Forum Posts by: Steven M.

I think we are all curious what your TOTAL costs (including labor) and what the square footage is on your projects. Thanks!

-Land purchase:

-Engineering (Architect, Civil, Geologist, Surveyor, etc.):

-Site Prep (grading/execavation, staking, etc):

-Foundation:

-All Building Materials (w/ Labor) including the garage: fixtures, framing, plumbing/electric, kitch/bath:

-HVAC:

-Landscaping and Irrigation/sprinklers:

-Flatwork (walkways. driveway, patio, etc):

-All Building Permits:

-All Developer Fees (City Impact, school, library, fire, parks, water/sewer access rights/fees, etc, etc.):

-Raw public utility connections (gas, water meter, electric, sewer lines):

-Holding costs (loans/financing):

TOTAL Costs:
TOTAL SQ FT (including garage):

What about developer related fees like school, library, fire, park, city impact, water/sewer connection fees, etc.? How much are those?

Jennifer,

Your cost per SF is eye-poppingly cheap even for your metro. So $60 SF is everything from the foundation to the shingles AND permits? How big of a house? A 1500 SF house worth of permits (AND all developer related fees like school, library, fire, park, city impact, water/sewer connection, etc) here in Los Angeles is at least $35,000. How much are all your bldg permits, raw utility hook-ups and city fees?

On another note, there are 5-6 major cities in the US where the local employment picture and economies are doing quite well, and housing for the past 18+ months: Boston, Seattle, San Francisco, DFW, Washington DC and NYC. Homes that are being foreclosed today are a result of poor local economies/job loses; no longer because of the sub-prime/mortgage crash. Most of those have toxic situations have come and gone Thus cities like yours with stronger economies, will likely see a lot less foreclosed homes than cities like Atlanta, Philly, Chicago, Detroit, Cleveland etc. I bet you a city like Seattle, has far less of shadow inventory than these cities, but no way of really knowing. Just my guess.

Those reading this also should research Phoenix, In the past year the market has really, excuse the pun, heated up and there are bidding wars. It's insane. I even heard people are spec building there now (I know, sounds nuts...Phoenix, really!). Check this out from a highly reputable RE research form, John Burns Consulting: http://www.realestateconsulting.com/blog/adam-artunian/phoenix-rising .

I won't build now because I can't comp it out a project to where I am comfortable as prices are still too borderline-depressed for new construction. I think likely prices will be up next year modestly in the SCV (and all of SoCa) vs. this year as I see small hints like monthly inventory/overall supplies and DOM starting to contract, etc, and some newer built homes not being sold for a '69 VW Beatle. I'm not betting the farm on this by any stretch and I'd like to see more several months pass before I am married to this notion (and also see at least some pick up in land sales).

I certainly think the worst is over...unless of course Europe falls into the Mediterranean and we go with them.

The safest thing here is to get your real estate broker's license, law degree and license, mortgage broker's license and top it all off with a liquor license to drown the pain!

Originally posted by Michael Quarles

Jon. In California seller financing isn't subject to usury. This is not true at all. A loan carrried back from the seller to the buyer for a home is a loan and is subject to usury in CA which limts the interest rate at 10% max unless the loan is underwritten by a broker.

Will, you are correct in certain respects but Seller Financing is typically indeed exempt . Here is a good once-over of the laws in CA governing usury.

http://www.nvlawllp.com/publications/CAUsuryLaws.pdf (see page 1, column 3, second paragraph).

Thanks Vincent.

Assigning the loan you would think is the most common sense way of doing this but I'm leaning torwards Monica who is probably correct, banks aren't going to do this. I suppose if banks would assign loans all of this would be so much more easier and get these toxic/underwater assets off the the market faster.

In California Toney for example, in most cases your mineral rights start at 500 feet below the subsurface. You can enter property at that level but only from off-site. I believe doing so needs to have no geological or soils issue (ie; liquifaction) above 500 ft, and a Geological report. Probably not very realistic, and a bit of a farce in all reality. You may want to initially consult with subject-familiar licensed Geologists to draw opinions.

Thanks to all who responded here and for your input and thoughts. I have done straight REO purchases via my agent and am not that intune into the the finer legal points of short-sales as I have not really delved into them like other R/E transactions.