Costs for Developing Raw Land - Multi Family - Apartment Complex
Hi Guys,
I'm not a commercial guy but would like to learn and have also come across a few leads that I just didn't know where to start in analyzing?
Hoping I can get some basic questions answered? I'm sure there are a lot of variables that would come into play not normally seen with regular single family residential so by all means share what ever you can.
My goals here is to wholesale any lots I come across but need some basic numbers that a developer is considering.
What makes a raw land deal worth pursuing?
What goes into a MAO calculation for land development?
I've heard the number for MAO in development be 30-40k/unit here in the Seattle and Central Puget Sound Area.
Is that all inclusive with land and planning costs?
If a wholesaler came to you with a deal, what do you want to see in the package?
Lets use an Example.
If I came to you with a 15 acre very level parcel that needed trees removal and not much grading. Utility connections nearby. It was zone commercial and be developed with a minimum of 150 units to a maximum of 450 units. 15 minute drives to major employment centers and shopping
Would it be a good deal at 2M / 3M / 1M?
Why or why not.
Thanks guys!!!