#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
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27 lot subdivision PDX market has gone black
#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
our 27 lots subdivision was paved last week... franchise utilities and back yard drains left .. plans for 2 models into city hope to record plat and break ground mid april..
Market still holding at 150 a foot for 2 story and about 180 for ranchers...
competition is Lennar but I think we can beat them on quality of finish's and our lots are perfectly level theres are sloping. Fingers crossed... rates hold for the year it will take us to build out.
I think you've talked about it in other threads, but can you remind us what you paid for the dirt and to get to this point? How much more before you go vertical?
#2 All Forums Contributor
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- Lake Oswego OR Summerlin, NV
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#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
lot 70k vertical 190k soft 20k 280 all in 350 sell price Net 70k
If we never got any of our cash back until the very end of the project this is a 82% apr on the original 500k invested. we borrow from bank at 6%.
WE don't have accelerated lot pay downs ( Ie own last lots free and clear) so we will get lot equity prorate as we sell thereby increasing our yield substantially.
I could flip the plat to Horton now for 500k gain so double money one year. That was always fall back position.. But I can't replace the lots for 70k so we will build it out.
#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
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#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
I answered above but forgot to tag you :)
#3 Contractors Contributor
- Contractor
- Los Angeles, CA
impressive numbers. good luck.
I hope you keep us updated on your progress,
Good luck!
You are setting the example for many. Wishing you continuous success.
#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
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#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
update we have run 200k over initial budget due to city changing spec's on our water retention piping system.. In our market you cannot let more water off the site than flows naturally so rain water has to be captured in either a swale type system or a pond or in our case 60 inch pipe 200 feet long at the low point of the development. this allows water to be metered out ... Well we spec'd it for corrugated and the city came back and said no must be plastic.. the delta was 80k.. various change orders do to roots,, soft spots etc 40k. Then the city wanted us to do back yard drainage system instead of doing drains at vertical this was 80k for all 27 lots.. So we are out of construction loan and needed to stroke checks this month... so now all in is 700k.... price's are firming on the sale end so we may be able to recoup Half of this over run based on market rise. Life of a developer.. you think it cost X then add 50%
Even our small developments have water detention/retention requirements that singles don't have. I'm working on a 4 SFR development on 15,000 square feet that requires a pond. We plan to put it up front and make it a feature. It will be tight, but civil and architect says we can do it.
#2 All Forums Contributor
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- Lake Oswego OR Summerlin, NV
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#2 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
I built a huge one 4 projects back and I don't think it ever got a foot of water in it and its 12 feet deep.. acutally I think they are safety hazards frankly.
The horse pasture behind my parent's place was developed when I was a kid - 12 houses and a large hole just wet enough to produce mosquitoes and frogs.