All Forum Posts by: Terrance Merck

@ keithb is this scenario possible or even close in winston salem area in todays market. Taking into account soft cost, land acquisition, etc.

 (The townhomes I built for $60/ft were selling for less than $100/ft, they were selling at $91/ft.) 

@keithBloemendaal thanks for the clarity. 

I'm finding that anything above $80 per sqft is not worth the chase for this type of project in this area. ( $80 per sqft includes all other cost) The First phase of current town homes developed are selling and sold between 98k-110k. Does anyone no how to cut cost, maintain quality and make a profit or am I dreaming? 

@JScott thanks for your assessment. I am a novice and though 60 per sqft is attainable I am sure my lack of experience coupled with hidden expenses and things that you've mentioned plus more that I am faced with challenges. You've suggested that I not waste my time with project and move on to something else, this option may be valid as I am open, however I believe that if approached properly this could be a profitable project. I will continue to hash out details and numbers and seek advice before making decsion to move forward. Thank you

@keithBloemendaal those numbers would definitely work in favor of what I want to accomplish. 

@ChrisStewart yes propertycan be developed at this density legally and practically. The existing development sits on roughly 2 acres with 30 units.

i am looking to purchase 2.4 acres from develop 24-30 town home units. However the numbers don't seem to be in my favor.  The development would be phase two of a current 30 unit town home complex. The area is zoned and currently has sewer, water, and gas. The land is $160000. The 30 current units are all occupied with mostly home owners. Homes sold and selling between 100k-106k. It was plan to build and sell for similar price (quality and affordable housing). The construction cost at the low end($120 per sqft)alone seems to place the selling price at $144000. Not including land purchase, soft cost, etc. Is there any way to get numbers to match current area market? As stated in previous post I am a newbie. I am open and receptive to all information and constructive criticism. I'm hungry. When I eat everybody can get a plate.

Thanks for your insight and advice. I am taking everything into consideration. By this being my first physical undertaking, i agree that it is of quite some size for first venture. I am seeking all knowledge to help cushion the blow of jumping out there without a net and will do my due diligence. The area is Kernersville, nc. It is a steadily growing area where the housing market is good. Water, sewer, and gas is available. I will definitely look into things further before making a decision to move forward. Thank you again.

Thanks for responses. According to realtor the seller no longer wants to proceed with second phase because he he no longer wants to carry the responsibility. Said it seemed like an initial good idea, but does want the headache of Developing land and going further. The First phase was built in 2006. They are currently at full occupancy. The last unit was listed as selling in October. 2014 for $96000. The area is growing. The land has been on market since October 2014. 

I am currently looking to acquire 2.5 acres of land for development in a rural area in North Carolina. This would be my first undertaking. The land is  in a usda defined rural area and zoned for residential development. The land was scheduled to be phase two of and already 30 existing town home development that the 2.5 acres is next to. It is my intent to build 20 to 30 town homes. The seller seems motivated. I am unsure as to why he decided not to move forward with phase two of development. To finance project I am looking towards usda and possible private money. I am currently getting all of my ducks in a row and as a newbie would like guidance on what steps to make.