All Forum Posts by: Brennen McConnell

I'd be interested too! I am considering selling on Roofstock but haven't been able to find any reviews on the selling process. 

@Brandon Vukelich I am trying to find a GC in Tacoma as well. I am sending you a PM. Thank you for the recommendations!

@Sue Hough very valuable feedback. Looks like I still have lots of homework to do. My idea was to buy lots that already are cleared and have utilities hookups. After looking online, it appears that there are quite a few lots like this in the suburbs outside Tacoma for 100k or less. Your points #3, 4, and 5 are well noted. I did account for some of those in our operating costs, but did not consider impact fees. 

Do you know of anyone in the SeaTac area that I could engage as a consultant to review all of our assumptions? 

Thanks @Moises R Cosme . Those numbers are helpful. Regarding #3, the reason is a bit nuanced. These foreign investors are providing 100% of the capital, and need to invest it in something that is job creating in order to get an immigration benefit from the investment through something known as the EB-5 program. While new construction homes won't create permanent jobs, we are able to get "indirect" jobs from construction spend to count. I am not investing any of my own capital, but rather just taking a development fee from the profits as compensation. 

I have foreign investor capital lined up to buy vacant lots and build new roughly 1,750 sqft homes in the Greater Seattle Area, including Tacoma and Everett, and am looking for feedback as to whether or not my assumptions are correct. The investors will be funding the entire project with cash, so I don't have any financing costs to assume. I have assumed that the cost of the lot will be approximately $100,000 if not in the city proper, and that cost to build will be $170 psf, so about $300,000 assuming 1,750 sqft. I am assuming the $170 psf includes all permitting and general contractor fees. At $400,000 total cost, I assume that I can sell the house for $450,000, and that less 6% in broker fees, the net profit would be $27,000, or 6.75% of $400,000. To me, that seems a bit low. I have read elsewhere that one can expect to earn a 10-15% profit on new home construction. 

I am wondering if anyone has feedback on my assumptions? I have never built a house before, though I do have experience with doing rehabs. But I am pretty much a complete newbie when it comes to new construction. However, I have the capital lined up and need to find a way to make it work. 

I've been working with this company for years now and have had a very smooth experience:  https://1stchoiceproperties.com/

@Trenton Miller Thanks for the feedback. The home comes with interior finishes complete and plumbing and electric. Apparently all that is required is pouring the foundation, assembly, and connecting to local utilities. I do have the plans for some of these and am planning on taking you up on your suggestion to run it by the county. Even though this factory has supplied homes for assembly in the US, the building codes are very local. 

@Greg Dickerson Yes this is what I am suspecting. The starting price point is quite attractive but by the time you factor in all of the assembly, man hours, shipping, and mistakes, it may not make sense. 

@Alex Olson Thank you, appreciate the feedback. 

I'm wondering if it would make sense to source modular homes in China and have them shipped to and assembled in markets like Memphis, Atlanta, Birmingham, and other where you can buy vacant lots with utilities for as little as a few thousand dollars. I've done some research with suppliers in China who have built modular homes for the US market, and it looks like we can buy modular homes for about $30-$40 PSF. The suppliers say they are familiar with building codes in the US, but I still imagine there would be a lot of work to ensure code compliance, as well as installing the home on a new foundation, connect to utilities, etc. 

I am considering getting my real estate license to make it easier to transact on properties I am buying for investment. I am not tied down to one particular location, so I am wondering if there is a particular state that makes it the easiest to transact in other states based on reciprocity or portability. It seems that a Nevada real estate license, for example, covers a lot of other states. Or does it only make sense to get a real estate license for one particular market that you are especially focused on?