"Soft" costs like appraisals and legal fees don't have to come from your pocket.You don't have to do everything yourself.

When accounting for soft costs, I recommend that you plug in your own figures for vacancy, maintenance & cap ex.  

Originally posted by @Dan Bass:@John Underwood I hear what you're saying and I believe in that to a point.  

The last building, it was listed for $1.8M, needs $300-400k in deferred maintenance and soft story retrofit, went for $2.1M and I was surprised it didn't go higher.

I have been investing in B-more for over 40 years - my suggestion is to study the market, learn creative financing, make offers and look at 20-30 properties every month until you feel you understand -values - in Baltimore the values change from one block to another - understand that.comps, be sure you have access to comps and understand the real comparison financing - hard money - soft money - seller financing - delayed settlement - joint venturing -etc.contracts - what will you use a MAR 35 page contract or a skinny one page with one contingencyunderstand the auction business - learn how to use auctions to sell your dealsattend auctions - meet REAL INVESTORSmeet real investors (many of the attendees at REIA's are not pros and looking for help from each otherlearn to recognize BS from real good information - talk is cheap - KNOW-NOTHINGS like to talk - talk is is free, it makes them feel important!

had 10 acre awesome bass lake !!

Food everywhere on the countertop and sugar crystals from soft drinks everywhere. 

been on the market too long""But I am excited about this next house""Yeah, man, I still can't believe Tony Romo finished so soft again""Look at that squirrel"I could go on but I won't...

I am building a 700 sq feet detached 2B 2B, I have budgeted for $200K for construction & soft costs.

There was an old post on BP,  but I believe is inaccurate as it describes soft cost development on land,  but my understanding is that you would actually own a share of the land,  and partner with the biggest and best developers in the country to build mid to high rise buildings.