Quoted $18 - $45 per sf to build a New Home In LA
Hello BP,
I have advertised for lease on the shop window of one of my commercial units and yesterday I received a phone call from someone who told me that he has his own construction company so rehab should be easy for them. He charges $18 - $45 per sf to build houses. He told me the lower end would not include materials. He says he has the relevant GC licence that he simply needs to blue print to move forward. I don't have this yet.
Is this possible or have I missed something as this seems to be a rather competitive price. My guess is that at this price I probably have to pay for the permits and connections. Im not entirely sure but any feedback on how to proceed from here would be appreciated.
The lot that I would like him to work on will be my first in Los Angeles with many more to come so securing and building a relationship with the right team is important to me. For this location in Inglewood there is a definite ceiling in the area but here are my calculations:
Lot Purchase $12,000
Development $58,000 (1000sf)
Selling Price $150,000
Profit (if sold) $60,000
Thank you in advance