Staten Island, NY · Member since 2016 · 19 posts · 2 votes
Hello Bigger Pocket Community,
Looking for as much information as possible with the idea I am going to present. So my friends and family are looking to buy land and build homes for ourselves. Our intent is to make this a private community only for us. I am aware the responsibility of maintaining the property would be our responsibility. We also would like to have a small field for us to play sports on. I am looking to do this in NJ or maybe even possibly Delaware. My plan is to find developers and work with them. My other plan, being in the construction industry myself, hire someone I know who has been working in the residential industry and get them to build our homes.
I am just looking for any useful information, things to look out for or to consider or any other useful advice from the bigger pocket community.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
9y
Here's where I'd be careful: If you're doing this with friends and family - what if one of the friends wants to do what he/she wants to do - to the detriment of the others - and they're part of the development and you can't stop them?
It's sort of worse than doing business with friends and relatives. It all looks good on paper, but they are usually expecting you to give them much more lee-way than you would a normal business associate. 'Hey, the weather is so awesome - I'm going to go fishing today." or "I had a big party last night and can't come in until noon" etc.
Yes, it can work out, but every longtime investor can tell you stories about friendships that broke up, because they hired friends.
So, unless you have a way to nail down every little thing in writing and create HOA rules - I would pass on the idea. Or put it in writing that you are in control and can set the rules.
@Michaela G. This is not a one man plan. Everything will be done collectively. So I am not making decisions alone. Everything will be discussed prior to moving forward. For now, I am just trying to gather as much information as possible.