how different is buying land to build a house on compared to rehabbing a house?
it looks as if people are starting to buy land so i would like to learn how to analyze a deal. i can find cash buyers to rehab easily, but finding people who buy land seems to be a bit more difficult
I've done a deal where I bought a bigger parcel say two acres then split into smaller parcels in an area where land was in decent demand. The land was irrigated and had horse privileges but the cool thing was it was in town and it sold within two weeks.
Buy land, get a construction loan for the building, collateral the land to get to 80% ARV. Same theory as rehab, different terms, different risks. new construction = 9-12 months, rehab 5-7 months. Profit of new construction vs rehab = 4-5x, in LA, CA.
how do i know how much it costs to build a home if i am not in construction. i was going to wholesale it to start off
@Jack Rengold Its part of the process, a developer is what you are looking for, not really cash buyers. Maybe @jay hindricks with turnkey-reviews.com could shed some liht to it.
is $100 a ft a good rough estimate?
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