Residential/Commercial Development Mastermind for Newbs &others?

Question

Hey BP, I'm really wanting to get into real estate development, however, I'm finding a big learning curve accompanies it.

Not sure if it's kosher on BP or not, but I thought it would be beneficial for me and anyone else in my shoes to put together a mastermind group to explore development, the process, funding, and everything that goes along with it. Any pros could come and offer advice and maybe collaborate on some deals.

If you're up for it, send me a PM and I'll start putting together a group. Thanks!

Jonathan Orr · Answer

Land Packaging or "Horizontal Development" as I like to call it can be very successful.  However, it depends on how far you take the development.  If you are just buying a raw piece of property but not going all the way through the entitlement process it is tougher to sell (not impossible but limits your buyer pool).  I have a partner who did that prior to taking deals vertical.  I actually just finished horizontal development and exited just because the entitlement took so and we received offers on the entitled project.  How we find the "end pricing" is you take all of your cost...land purchase, architects, city fees, etc. Then add a percentage bump of what you need or if there are comps that you can find locally that fit a similar end product. It is really market dependent, sometime you can make a good amount because it is a growing market, or if it is a heavy entitlement process you may have to slim down your margin because you need to keep in mind that the end buyer will need to take the land cost plus construction and will work backwards to see if it meets their investment needs.

I am definitely open to a mastermind,  I will be honest, I am still young in my career and don't know if speaking to people that would have a great deal more experience than me be effective, but always great to network with others in the industry.

PM me if you have more questions.

Jonathan Orr · Answer

@Michael Schumpert Development is a tough subject to pin down.  Realistically, myself and the people I learned a majority of stuff went down a similar path...Just have to get into it and learn.  I joke with people all the time that development can't be taught in a class or a book (even though there are some really good and informative books and classes out there).  There is no cookie cutter equation and each and every project will be different.  However, masterminds and networking with other developers is always a plus.  I actually learned a great deal more from talking with other developers who have MUCH more experience than I do.

Michael Schumpert · Answer

@Jonathan Orr

Yeah, that's what I've been gathering from my research. Quite a few niches on the development side, and many different avenues for each! I think I'm leaning toward land packaging to start my development career. I just don't know how to value the potential exit to make sure the project is feasible.

Do you have any suggestions on books or classes? (preferably affordable) I'm able to invest in my education, but some of the courses and established masterminds I've seen have been $10k+

what about you, are you interested in a mastermind group? or speaking to one if I get one started?