Long Beach, CA · Member since 2016 · 24 posts · 8 votes
Hello BP!
I am looking for everyone's favorite books or resources on learning real estate development. I have experience buying distressed duplex/tri/four, renovating, and holding long term, but would like to learn more about the development strategy. I see land for-sale around me often (Southern California) and would like to be able to analyze the ability to develop land and/or build SFR through small multi-family profitably. I am on the forums often, but if you know of any good development deal diaries I will take those too!
I am looking for everyone's favorite books or resources on learning real estate development. I have experience buying distressed duplex/tri/four, renovating, and holding long term, but would like to learn more about the development strategy. I see land for-sale around me often (Southern California) and would like to be able to analyze the ability to develop land and/or build SFR through small multi-family profitably. I am on the forums often, but if you know of any good development deal diaries I will take those too!
Real Estate Development is a fantastic space and a great business model especially right now with such limited inventory. If you can bring product online for sale or for rent right now you can do extremely well. Builders are also looking for lots so there is tremendous opportunity there as well.
Analyzing the deals is a reverse engineer process. You start with the end value of either the income the property will generate when complete and stabilized or the value if for sale. Then work backwards subtracting profit, costs to build and sell or rent, cost to develop the land if it's raw and cost to permit if the lots are improved etc.
Once the deal looks financially viable you wan to do a thorough due diligence process to make sure there are no surprises regarding utilities, storm water, parking, setbacks, lot coverage, architectural controls, public position and all the costs associated with all of that prior to purchasing the property. You do not want to close until you have all the permits and costs info to build what you want to build.