Developing Real Estate on Raw Land for Profit?

[Nathan Roberson]

Over the past few months I have been searching for fix and flips in my area. Its proving to be extremely difficult to secure deals. The average DOM has been around 8 days. Not much luck in the surrounding areas either. HOT sellers market. Decent leads are hard to come by. I'm an all cash buyer. My thought now is it would be best to build houses from the ground up since the Inventory is absurdly low and demand is so high. Are there any good books out there on the subject? Good resources? Formulas? Training? Clubs? What's the biggest thing to watch out for?

[Greg Dickerson]

Originally posted by @Nathan Roberson:

Over the past few months I have been searching for fix and flips in my area. Its proving to be extremely difficult to secure deals. The average DOM has been around 8 days. Not much luck in the surrounding areas either. HOT sellers market. Decent leads are hard to come by. I'm an all cash buyer. My thought now is it would be best to build houses from the ground up since the Inventory is absurdly low and demand is so high. Are there any good books out there on the subject? Good resources? Formulas? Training? Clubs? What's the biggest thing to watch out for?

This strategy is Infill development build for rent. This is and has always been a great strategy and is becoming more and more popular due to low inventory levels. New generally rents faster and for more and there are entire build for rent communities under development all across the country. The bottom line is available land and cost to build. If you can find lots or land to develop in areas people want to live and build at a cost that works for the income you can get then it makes sense. With rates where they are right now it definitely makes sense in a lot of markets. I have built hundreds of homes mostly short term rentals but some long term.