I currently own a 3 family home in park slope, Brooklyn. The zoning is R6B. I have always dreamed of getting into real estate development. The property is owned free and clear with no mortgage. Here are two options I have:
1. I intend on demoing the property and potentially building out 6-8 units.
2. I think I can get the neighbor to sell her property which is semi attached to mine - for an even bigger project.
Either way I will need capital. I can maybe get some close people to invest with me but I am not looking to bring on too many investors.
I want to get the ball rolling, but I don’t know where to start. I don’t even know the questions I should be asking. For example, how much capital would I need? How long can such a project take?
Thanks for sharing your post, if you'd like to message me, I could give you some info./pros/cons in regards to development strategies for your property. I'm currently developing a 4 family townhome in Cobble Hill Brooklyn, and have a couple friends doing various projects similar to yours in Park Slope(where I also live).
Either way, let's connect, I can give you an idea of cost and all the headaches your have to look forward to you.
Hey @Mohammad Hassan - if you think you can get the neighbor to sell you her piece of the property then that's what I would tackle first.
Depending on your experience in the space, you may need to bring on more investors for the capital that ALSO have experience. Reason for that is because if you were to get the construction financing for it, the bank is going to look into the operator's (you) experience in the field and whether or not you have a track record of knowing what to do.
Happy to chat further if you'd like, I work with a lot of investors that do something similar and most people have no idea what to expect so when things hit the fan, they give up.
You can text me at the number in the signature below, or just DM me anytime thanks.
Run some preliminary numbers first. What is the average build cost of a 6-8 unit and what can you expect to sell each unit for? If build cost is $800k/unit and sales comps go for $650k then it's a non-starter.