Home builder Looking into Raw Land Development
I've been in the home building business for about 6 years and know I'm interested in doing land development to sell lots to home builders. I had a engineer look at 56 acres of land and determine that I could get between 90-101 lots out of the 56 acres. I had a local real estate agent pull some comps in the area and she said that retail value of homes could sale for between $189-$199,000. The engineer also said that the cost to put 4600 lineal feet the street,curb and gutter would cost $2,070,000 ($450 lineal feet). This price doesn't include the utilities. Also the asking price for the land is $560,000. Also the property would not need to be rezone. Also base off the $189,000 homes sale price I would sale the lot for around $37,800 -$40,000. I would like to get some input from experience land developers on soft cost and also how would you approach this deal if you needed partners to do this deal.