Here are some questions to ask yourself that might help:
1- Are there any zoning restrictions that would prevent building a house? Is there a zoning approval process and how long does it take? This may determine the length of any option you mau use.
2- What is the value of the land and what can you get it for?
3- What type of style houae are you planning to build and does it fit?
4- Are you building a modular house or from scratch? what is the estimated cost for a builder including laying utilities, sewer, etc.?
5- What is cost of the total investment including land and build-out, carrying costs, insurance,etc.?
6- Assuming this a speculative, what is the expected sales price, any commissions, approvals, and your projected net return?
7- Does it make sense from a numbers view for you to buy land and build?
8- Can you carry it if it does not sell or what is your breakeven cost? What is your plan if it falls short based on the economy- would you rent it? or what?
9- Would it makew sense to take an option on the land and assign/sell it to a builder so you are in and out much quicker?
10- Make sure if you approach a builder, they do not swoop in and buy the land themselves before you have it controlled.
11- Plan ahead. These questions are not to deter your dream but to make sure you have thought through the process and options you may utilize while (and if) you pursue it.
12. Good luck.
Like your post, and those are good questions to ask.
flo-88 if you have bad credit, you need to work on that part first. Or get other deals done that will give you faster cash. Why not just try and get the lot under assignment and start getting some deals done first, then you build up your credibility you may be able to get some PML for more deals.
Taking on all of what you suggested would make me a bit nervous even if I could get the funding, there is more to it than just buying building and selling. A whole lot of other things can cost and happen during that time, and you could lose it all.
So be careful starting out esp. with something like that.
But the lot may be a good flip for you.
Sandi
I personally can build a house complete in about two months after all the zoning and permit process, and I wouldn't do it. I know many builders who have stopped for now because there is no profit in it right now.
Less than a 1 1/2 mile from my home a builder was building patio homes for seniors and everything dried up they foreclosed on all the remaining lots that are all set to go. A whole track 26 more lots if anyone wants they could grab them so cheap, and nobody even bid on them at the auction.
I find the advice of the three to be extremely accurate.
Isn't it great to be able to ask a burning question and have such sound experience at your finger tips?
To all of you who replied.....THANK YOU for all your wisdom.
Dave
__________________
"There are no pictures more in focus, more colorful, more meaningful,
more complete or panoramic, than those seen through the eyes
of a visionary entrepreneur."
if you have xtra money sitting around in a savings account earning .25% interest, and you have a dream to build your own house, then buy the lot- you should get a really good deal on it- and hire a builder to do it. The builder will be happy to get a job; cost of materials is low now...
on the other hand, if you're doing this just to sell it and make a profit... walk away.
If you don't have the money to buy the lot and pay for the builder, there is no chance of any banks lending you the money on an empty lot...
wishing you success,
Valerie
__________________
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
Offline
Buy the lot, hire a builder, build your house, sell it. Its that simple!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Here are some questions to ask yourself that might help:
1- Are there any zoning restrictions that would prevent building a house? Is there a zoning approval process and how long does it take? This may determine the length of any option you mau use.
2- What is the value of the land and what can you get it for?
3- What type of style houae are you planning to build and does it fit?
4- Are you building a modular house or from scratch? what is the estimated cost for a builder including laying utilities, sewer, etc.?
5- What is cost of the total investment including land and build-out, carrying costs, insurance,etc.?
6- Assuming this a speculative, what is the expected sales price, any commissions, approvals, and your projected net return?
7- Does it make sense from a numbers view for you to buy land and build?
8- Can you carry it if it does not sell or what is your breakeven cost? What is your plan if it falls short based on the economy- would you rent it? or what?
9- Would it makew sense to take an option on the land and assign/sell it to a builder so you are in and out much quicker?
10- Make sure if you approach a builder, they do not swoop in and buy the land themselves before you have it controlled.
11- Plan ahead. These questions are not to deter your dream but to make sure you have thought through the process and options you may utilize while (and if) you pursue it.
12. Good luck.
Like your post, and those are good questions to ask.
flo-88 if you have bad credit, you need to work on that part first. Or get other deals done that will give you faster cash. Why not just try and get the lot under assignment and start getting some deals done first, then you build up your credibility you may be able to get some PML for more deals.
Taking on all of what you suggested would make me a bit nervous even if I could get the funding, there is more to it than just buying building and selling. A whole lot of other things can cost and happen during that time, and you could lose it all.
So be careful starting out esp. with something like that.
But the lot may be a good flip for you.
Sandi
Thank you I appreciate your advice. I still hav'nt finished the two books yet but I'm going to take it step by step.
Don't do it!!!!!!!!!!!
I personally can build a house complete in about two months after all the zoning and permit process, and I wouldn't do it. I know many builders who have stopped for now because there is no profit in it right now.
Less than a 1 1/2 mile from my home a builder was building patio homes for seniors and everything dried up they foreclosed on all the remaining lots that are all set to go. A whole track 26 more lots if anyone wants they could grab them so cheap, and nobody even bid on them at the auction.
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
I find the advice of the three to be extremely accurate.
Isn't it great to be able to ask a burning question and have such sound experience at your finger tips?
To all of you who replied.....THANK YOU for all your wisdom.
Dave
"There are no pictures more in focus, more colorful, more meaningful,
more complete or panoramic, than those seen through the eyes
of a visionary entrepreneur."
if you have xtra money sitting around in a savings account earning .25% interest, and you have a dream to build your own house, then buy the lot- you should get a really good deal on it- and hire a builder to do it. The builder will be happy to get a job; cost of materials is low now...
on the other hand, if you're doing this just to sell it and make a profit... walk away.
If you don't have the money to buy the lot and pay for the builder, there is no chance of any banks lending you the money on an empty lot...
wishing you success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...