Hey BP! I'm a Wholesaler in San Diego County, California; and I'm currently having a bit of trouble figuring out how to market a deal I'm getting under contract to Cash Buyers. If there are even Cash Buyers for this kind of deal.
So the basics of this deal are the following:
The property is in Fallbrook, CA; in the Morro Hills Community.
The property is 13 acres large, right in the middle of a "high end" single-family residential area; whose properties average between the 950k-1.2M pricetag(Each property is just about 2-3 acres large with these prices). This property also has a tentative Parcel map with 5 parcels, with 2-3 acres each parcel, you could build 4 homes on this.
The house itself isn't all that great, it's 3 thousand square feet, but nowhere near as luxurious as the rest of the homes in this neighborhood in terms of design; and I'm getting this for $1,250,000.
With all useable land and fertile land(With the exception of Grand Oaks which cannot be cut down; which may serve as an attractive part about the "Community" if several homes were to be built on the subdivisions), 2 water wells, 2-inch water meter and all the utilities; how difficult would it be to find a developer to pick this up, have the deal assigned to, pay closing costs, and pay in cash?
I have no idea how to find developers that would build luxurious homes in a community like this, and wonder if they'd bend over backwards to pay for Backtaxes, Closing Costs, a wholesalers' assignment fee, and close within 2 months! I feel like I'm hoping for a miracle here because I've heard how difficult it is to get a subdivision done, and the time it would take to build 4 homes.
Any advice, tips, or hard reality checks about this kind of deal would be greatly appreciated!
You may want to check with @billy bell to see if he has any connections in southern cal for a property like that. Not sure why the callout isn't working but he'll come up if you search BP for his name.
Not a developer, but I think typically builders don’t want to have more than 25% of the finished product into the lot costs.....seems like your purchase price is too close to the individual lot values, after subdivision.
@Diego Figueroa I'm in the middle of two small subdivision projects (4 homes and 3 homes, respectively), but they're in urban San Diego City proper. Here's my thoughts:
- The fact that you have the TPM is important. That saves about 12-14 months of time if someone were to develop it. Do you know when the map was issued? They expire, and depending on the timing may require reconsideration for new laws or fee schedules.
- Look at the conditions attached to the TPM to see what the County is requiring in terms of public improvements. This plays a big part in determining the value of the land for development purposes. At $1.2MM, there better not be much public improvement, utility, or private facilities required.
- For something small like this, you're gonna need someone local who's more of a boutique developer. Look for someone who wants to do the site work, then sell the lots to the future homeowner who wants to custom build and design their own home. Wouldn't expect this would be a spec build situation. How many build-ready lots are there for sale in the area? What price are they listed and selling at?
- There's more people (like me) doing this in the urban area, fewer in the more rural communities. But, it just takes one. Unfortunately, I don't know anyone that far north I could point you to.
- Aside from the sell-each-lot exit, there's also a potential divide, rehab existing house, and hold land exit. You may market that way too.
This is up my alley, so wish I could say, "I'll take it" and make your life easy, but I'm not your guy on this one.
@Justin R. Thanks for the reply! Provided a lot of good information and advice. I'm operating down in San Diego in the more urban area as well so getting in touch with Fallbrook people is tricky; especially people from around the Morro Hills Community.
I'm doing as much as possible through Facebook and Craigslist but we'll see what happens.
@Michael Hacker Thank you for the referral :) Sent him a request and message