When there is "value add" in the project the returns are much higher but you wait about 5 years and hope the market doesn't change in the meanwhile.

I have heard of instances where one (the borrower) is allowed to choose the appraisal company or put in a recommendation for one which the institutional bank may honor, and then the person already knows someone there, that they have gotten to know with time from other projects, and it's not unnaturally inflating value but favoring a good one to keep the reoccurring client.  

Perhaps not a trend to consider across the city but any neighborhood that would attract college educated young professional families seems to be a good bet if you wanted to focus on this asset type.I plan to build 12 townhomes as a second phase of a condo/townhome project in a good area of Mount Airy near the Chestnut Hill boarder and even though I’m likely to years away from being ready to begin phase 2, my current plans are to keep the 12 homes as rentals for the precise reasons I outlined above.  

Project CloseoutI'd suggest using AI Gemini or ChatGPT to get you a starting point....then get feedback & and revise if needed. 

I would ask how many projects they have going currently and how they manage their schedule.  

On the bright side, a lower LTV will decrease the risk of the project for you so it's a good buffer to have on your first deal

If you're new to new build construction (or construction in general), I would get a local Architect onboard to be your eyes and ears in taking on the project and helping to assemble your team.

We ended up just doing a shiplap ceiling to eliminate having to drywall and filled the cavity between the two ceiling with rockwool and it has made a pretty substantial difference that wasn't crazy expensive and was a two day project due to eliminating the need to finish drywall.  

The way you become a developer is to find a project and make it happen.  

I know I want to start small/slow with one project (either a rehab/flip or a buy/hold long-term rental) and invest only in areas that I know or live (Los Angeles, Orange County, CA) at least in the beginning.