You can still find raw land in Los Angles for surprisingly (to me) low prices. Many of these empty lots have even had previous construction. I have no experience with raw land, and I'm curious what it takes to bring raw land to "shovel-ready" condition.
Anyone have experience with this type of "adventure"?
I do environmental consulting for raw land development and let me tell you that for building on even a SFH on a small lot you're talking at least 100k in soft costs to break ground! Developing in CA is not for a newbie or not for anyone with limited capital.
Boy, @Lee Ripma said it right. It's a big deal. My current development is finally RTI after 3 years. Building 3 houses on a hillside in Los Angeles. Finding the land is the first (and easy part).
Aleko, from what I understand, you can now get construction loans in which you do NOT have to own the land to get financing. That's a great way to lower risk as you can get the financing in place, and then shop for land, research costs of development, and move on to the next piece of land, if something comes up. On the other hand, you are stuck with that dirt/city/county, if you buy a piece of land before development. The costs in the beginning are usually plans, permitting, utilities, foundation and maybe plumbing and electricity. The building can be a stick build or prefab modular or something off the wall like a Tiny House, etc. Land gives you so many creative ideas, John
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