All Forum Posts by: Donald Capwell

thanks, @Stephen Hundley!

thank you, @Mike F. and @Justin R..  You both seem to confirm my suspicion, but I know everyone has a different threshold of what they'll endure for a dollar.  In this scenario, I'm estimating (very conservatively) a $50k-$60k net profit after an 8 month build, if the builder can do an upper mid grade build for $95/sf.  If he splits the lot, it becomes a no-brainier, but this is not my specialty, so something I'll flip to a builder.  By learning how to evaluate this type of deal, I'll spend less time on this in the future, and know when to walk away.  In any case, it's not a deal without a contract, which I hope to learn more about tomorrow...

I appreciate the input!

Thanks for the input, @James Leibiger.  No basement in this one, so that's easy, and the property is being sold for less than land value... 

Cheers...

accept my TOFFEE????  Lol.  Darned autocorrect!  Now I need some candy...

thanks, @Don HarrisOffer is out on the property, so we'll see...  It's not the kind of money that @Account Closed is talking about (darn it), but it's a deal all the same (if they accept my toffee, of course).

Cheers...

hi, @Pamela Hartwell, and welcome!  I'm here in Fredericksburg if you have any questions... My family and I love the beach, too, and enjoy our escapes to Sandbridge whenever possible!

Don't be a stranger!  Good luck...

Cheers!  ;)

Thanks, @Matthew Paul, its rural, but close to 95 (and far enough from the insanity) to make this pretty attractive. That, and the high-end (ish) new housing developments popping up all around the site (and this one won't have HOA fees). My concern is in not being a builder, or knowing that end of the business, and whether or not this makes sense from a builder's perspective. I started the evaluation in this property to do a rehab, but there's just no hope in it, so I'll put some feelers out locally to see if a builder wants it...

Cheers

@Darlena Jones  awesome.  Very helpful indeed.  Cheers...

@Darlena Jones, thank you!  That is very helpful information.  How long does it take your team to build a 3000 sf house?  (Asked to understand hold timeline). Also, as a builder, is it safe to say you have a line if credit with a bank?  What is you (average) cost of money (annualized)?

Thanks, @Chris Mason.  I don't think I'm articulating my question well enough...  Let's try this...

Does it make sense to tear down an existing home and build a new home if the NET PROFIT is $50K.  As someone doing this type of deal, is this something you do for $50K, or do you only do it when the net profit is greater than "X," when X=(fill in the blank). 

I'm looking for someone that does these types of deals to sound off on the decision to pull the plug or not.  I understand that there is a lot to analyzing this, but in the end it comes down to "is it worth it" (like my former boss' example, above).  And, I understand that everyone has a different "worth it" meter, but I'm looking for a "normative average" for someone that does this.

Thanks!