All Forum Posts by: Ivan Vargas

33 Single Family residential development project with approved site plans.

9 acre property already rezoned with approved plans to build 33 single family zero lot line homes. 

Asking $70k each lot. 5175-5400 sq. ft. 

I don't expect anyone to buy the whole property but we can partner up and build 33 homes. I'm willing to sell up to 20 of them. 

It will cost another $20k each to get the land ready and the houses will cost an estimated $200k and take about a year to build. We'll be in around $290k and can sell for anywhere between $350-400k. If interested I have all the info on my website palmbeachdeveloper.com

Hey @Justin Jocewicz looks like we're neighbors. @Duriel Taylor you are absolutely right about the market being saturated and HOT! Up here in Palm Beach the market is so hot and there is so much competition houses, especially REOs are selling for over asking. In the short time I've been here I've offered on so many houses and all my offers get rejected or ignored. 

Just about a month ago there was an REO the bank was asking $183,200 and I offered $185k cash, with no contingencies, 15 day closing and still got rejected. I spoke to one of the agents at the listing broker's office who quietly mentioned he saw an offer come in at $218k. House needed a new tile roof and the water damage was so severe in the second floor that they removed the flooring before listing it and the water had already began to damage the first floor.

I just saw a house got listed for $99k on 03/01 and it closed for $108,500 on 03/29.

Point is, you really need to know your numbers. Comps are a great place to start, but you can't completely rely on them because as you mentioned the different flooring and kitchens will throw the prices off so much in certain areas. You can't exactly compare a fully renovated house with granite counters to a 20 year old house with no updates even if their identical model with same sq. ft. on the same block. You need to project know how to project the ARV.

I just offered $120k for one that their asking $109k... here's why/how:

ARV $249k x .70=$174,300-$35k (repairs) = $140k - 10% (buy/hold)=$126k. I may have offered too low, or should I say, another investor might offer more and I'll get rejected again.

I'm fed up with competing. I decided to just buy land and build new houses. I just signed a contract for a 9 acre parcel with fully approved plans to build 33 SFR. Only offers I get accepted are vacant lots. I bought a lot for $60k+$10-15k (clearing woods and importing soil) built a $220k house and sold it for $415k. No worries about what you may encounter in a 1980's rehab.

@Jim Hiler It appears Bigger Pockets deleted the files hey may not be the type of files they expect on here. All this information is on my website but I'll be glad to answer any questions I may have missed. 

The lot sizes are: lots 1-13: 45x120' or 5400sqft. and lots 14-33: 45x115' or 5175sqft.

These are zero lot line homes with a 10' setback on the other side max 50% buildable so we have house options ranging from 2000 sq. ft. to 2600 sq; ft.

The 5br model for example is35x57', 2647 roof, 2257 air, 1338 first floor, 1309 second.

The land bid came from MJC Land Development in Royal Palm Beach.

Maybe we can meet and talk someday, do you go to any REIA meetups in the area?

Yes it is just now getting started. Plenty of threads on here about it. Ian's website looks like it has plenty of information or you can check out mine.

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