Hello BP investors, 

I have this property in contract and I need partners/investors to make it happen. 

The property is a 9 acre vacant parcel in West Palm Beach, FL with county approved plans to build 33 single family zero lot line homes. The seller had all the environmental and geological testing done and the results were used to create the civil engineering plans which were subsequently approved by Palm Beach County and the project is basically "shovel ready". 

The project will cost about $3.2MM to get going, part of which can be financed of course however that will increase holding costs and eat up on the profits.

Purchase price on the land is $2.1MM or $63,636/lot. 

I got a bid from one of the top land developers here in Palm Beach for $606k to clear, excavate, lay out underground utilities, grade and pave the whole 9 acres. This includes grading all 33 lots, slope, drainage, curb, sidewalk, the road and a lake. 

An estimate from one of the top builders has us paying about 200k/house. These are 2 story, 5br/4ba/2cg CBS construction with Spanish tile roof, tile/wood flooring, crown and baseboard moldings, granite kitchens and baths, stainless appliances etc... top quality homes designed to fetch top dollar.

In this area a brand new house that size with those finishes can go for up to $399k but I'd say $350k fsbo to get rid of them quickly. The market in west Palm beach is so hot we won't even need the mls so brokers commissions stay minimal at maybe 3% paid to buyers agents. I'm estimating we can easily net $50k minimum on each house maybe even more if we stand firm with our asking price.

So here's the plan: buy the land, develop it, then build 2 model homes. The model homes get refinanced and the funds are used to build more houses. We then use the models to sell the rest in preconstruction while they're being built.

If necessary we can also get construction loans to build the remaining houses. This will speed up the process as we will be able to build the houses right away if we actually have the funds to do so.

Financial breakdown is as follows:
$2,100,000-purchase price
$606,000-land development
$400,000-model homes
$94,000-reserve
=$3.2MM

2,100,000+606,000÷33=$81,999/lot
200k+82k=282k so let's round it off to 285k/house.

$350,000 x 33 = $11,550,000

-$285,000 x 33 = $9,405,000

$2,145,000 Net Profit but I am more comfortable projecting $50,000 x 33 = $1,650,000

I locked it in contract with $25k and I have another $275k to put towards the project which is just under 10% of the total. 

I say we can crowdfund this project as well as many other projects. It only take a few of us to invest a few thousand each and its a go. 300x$10,000=$3MM or 10x$300,000=$3MM

I uploaded a few documents including the siteplan, geotechnical test results, environmental report, even the Bigger Pockets Analysis report. You can see all these files at the link below. 

https://www.biggerpockets.com/files/user/IvanVargas/villa-tara-development/

If you are interested and want more information you can visit my website and see a complete detail of the project and financial breakdown as well as other projects I have in mind some are even from the same seller.

https://palmbeachdeveloper.com