I have a house under contract in Lafayette ca and it needs alot of work to get it to a high end arv.It has a huge lot(.5 acre) and comps are around 1.7 million. I think I want to develop it any suggestions?What is step one in a development?
Have you done a flip before?
What exactly are you trying to do/develop?
How much did you pay for it?
Over 15 flips.I picked up the house for 700k which if you know the area is unheard of.The house on the house is livable,but to really make real money off of the deal i feel like you have to basically build a new home.Any thoughts?
The first step in a development is to find out what the zoning, hoa, or local laws permit to be done on the property. After you know the rules, then you can formulate a plan on what you want to do or are allowed to do to develop the property. Absolutely verify everything, don't take someone's word that something is a certain way, see it in writing. I made this mistake with my first development and learned a costly lesson.
Looking back Glenn do you think you should have done a jv on your first development to buffer the learning curve?