Anyone Else Here Building New Construction?

Buying & Selling Real Estate
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Anyone Else Here Building New Construction?

Tucker Merrihew
Investor · Portland, OR · Member since 2009 · 42 posts · 18 votes

Hey there folks.....I just wanted to reach out and see if anyone else on this site is doing any in-fill new construction these days? We have been doing quite a bit of in-fill new construction ourselves and its been a great niche for us financially, but I am curious what others experience is with it.

We generally focus on the higher end A+ neighborhoods in my market of Portland for this strategy, but I would like to hear how others are using the strategy in their market.......I look forward to hearing what people have to say.

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Grant P.
Denver, CO · Member since 2012 · 218 posts · 48 votes
13y

All I am focusing on currently. Only infill in A+ neighborhoods as well here in Denver. One of the main reasons I like it is because I actually enjoy it. The Design is the most exciting part for me. Working through challenges that the site/budget may present, and attempting to maximize returns with the real focus on building A great house. Even if we make a little less, but don't build garbage I'm ok with that.

You will never catch me building a house out of a magazine at a supermarket, only one off high design modern homes.

Here was the project I worked on with my dad in 2002 when I was 18 that got me hooked. Winner of an AIA merit award.
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  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    12y

    @Ben Johnstone That does include our permit fees, and figuring a flat lot. Obviously pricing varies depending on the type of finish work, the amount of work you do on the project yourself (from actually on the job, management, marketing, etc.) Also, every lot is different. On a lot that is going to require retaining walls, hang out over a ledge, caissons, or ? costs skyrocket.

    Do you have a project you are trying to do or ? If you can give me some information that's more specific I may be able to give you some suggestions, etc. Feel free to private message me if it's info you want kept confidential.

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  • Ben Johnstone
    west hollywood, CA · Member since 2014 · 37 posts · 3 votes
    12y

    I will definitely ask your advice in the future, right now I am just researching. I have a few places in mind, but have a feeling there may be reasons why these plots are more 'affordable' and still on the market. I'm having one plot checkout out by a civil engineer this week. The zoning is all in place, but hopefully I will find out what its going to take to get the plot build ready. Or if it is even possible.

    Fees in LA are crazy, the school fee alone is $10,000. And as I'm sure you know, vacant plots or tear downs are hard to come by.

    This hypothetical project Im looking at: A very general estimate has put the construction at $230 a foot(not including a two car garage). I hope to get it down from here. This number was calculated using worst case scenario grading and land development costs(pretty much as high as it could be before it becomes unprofitable). It also is using retail prices, which I would hope to reduce by 20% or more once work is bid out, and I figure out what I can do myself, or oversee myself.

    Getting a rough grading and excavation cost is my first step, and then nailing down all the permits I will need.

    From what I have seen, under $200 in LA, and Im talking the higher end areas, like West Hollywood, Eagle Rock, Mount Washington, Highland Park, Venice - under $200 would be pretty good, is this a correct assumption?

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  • Cory Calvin
    Investor · Brighton, CO · Member since 2014 · 59 posts · 5 votes
    12y

    I started a new build as my first investment into real estate on a golf course in the estates neighborhood ( upscale, but not quite luxury) and the cost to build for this project is right around $95 s.f. Northern Colorado area. Market Value ~$360k

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Tucker Merrihew

    Hey Tucker good to see you here!! how did you do on your street of dreams project? Lets have coffee soon.. I have a bunch of Newco going and I have gotten some pretty good lending products for PDX construction.

    I think you will find that profit margins in others areas of the country are much better than our vanilla deals here in PDX> Our lot scarcity bordering on acute is the major reason. I have opened two new markets for new co..

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
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  • Tucker Merrihew
    OP
    Investor · Portland, OR · Member since 2009 · 42 posts · 18 votes
    12y

    @Jay Hinrichs - The Street of Dreams projects ended up doing really well for us.....but it was a ton of work to participate in a show like that. I knew the development would sell and that's why we got into it originally......and in the end that proved to be the case.

    We are actually running at a lot surplus right now in PDX since our marketing systems are working so well for us......and the margins we are getting are pretty darn good, so I think for us PDX is the place to be for the near future. Anyway I would be happy to grab coffee and shoot the breeze, so just let me know.....

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Tucker Merrihew Lot surplus... wow.. coffee ASAP want to see what you have

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
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  • Tucker Merrihew
    OP
    Investor · Portland, OR · Member since 2009 · 42 posts · 18 votes
    12y

    @Jay Hinrichs - I would be happy to meet next.....just call or text me 503.490.3540

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  • Account Closed
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    12y

    I also jumped to the new construction ship a little over a year ago. Infill specs are fun, but I am getting into a little land development also. Lots of money to be made (and lost), and lots of new exciting things to learn :)

    1Reply
  • Corey Davis
    Los Angeles, CA · Member since 2013 · 169 posts · 27 votes
    12y

    @Tucker Merrihew I normally flip classics in Portland over in the NE overlook and Alberta areas. I have a property now that I was approached on to tear down and infill. (It's a 1920 bungalow surrounded by new high end Eco friendly stuff)

    I'm still on the fence about tearing it down, as I have no experience in that department. What kind of resource would I use to get a second opinion?

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  • Tucker Merrihew
    OP
    Investor · Portland, OR · Member since 2009 · 42 posts · 18 votes
    12y

    @Corey Davis - I would be happy to give you my two cents on what we would do and why......just shoot me an email [email protected]

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