All Forum Posts by: Mark Mathews

Maybe you can start here:

https://www.sccgov.org/sites/dpd/AboutUs/Building/Pages/Building.aspx

Hi James. I this is not a math problem. The information provided does not give you any clue about what the land would cost nor what the construction costs would be. For that information, you could contact local real estate agents for the cost for such a piece of land. For the information about building costs, contact some local home builders or home repair/renovation companies.

I'm curious what class this is for.

Mark, I'm just curious. Why did you buy the lot knowing it has sinking issues?

I have to agree with Nate. Start by buying your own house, a duplex would be good. Local real estate agent can help you get started.

I'm kind of low tech, but suggest you search online for "fastest growing cities". You'll probably find some tools already available for specific areas of the country.

Karl,

It seems to me like you need to more clearly define the relationship between yourself and your builder, who happens to be your brother, in this deal. If you are going to be partners, you should have a formal partnership agreement, especially because he's your brother. You need to define in no uncertain terms who will be responsible for what and who is entitled to what. If you want to keep peace in the family, you have to be clear.

Also, I noticed you said, "I put cash up front for the lot so I am the only person that put the investment in it really." I'd say that's not true at all. You mentioned that the contractor will be responsible for the material and labor. That is all part of the project cost, and you are not paying it. Your brother IS making a significant financial contribution also. Once again, get it in writing.

I agree with you that any tools the contractor buys are not your responsibility. That's because the tools are personal property and you will not own them. However, when the contractor purchases material and pays for labor to build a house on your real property, he also has a financial interest in the real estate. If you don't have a clear, written agreement up front, you're asking for trouble. About how much percentage to share, in the end, the two of you have to decide together. 

Did mention that you need to get it in writing?

Hi Landon, probably you can get some good advice from BP members, but it seems to me that the best person to tell you what your contractor friend needs is... your contractor friend.

Just be direct with him, tell him what you'd like to do and then listen to what he says. Likely, he'll have some ideas that you didn't think of before.

I don't have any direct experience yet with developing, but I've done a little research.

I'd suggest that for a project of this size you would want to start with a feasibility study. It's quite a bit different from flipping a home that's already built and zoned. For getting the zoning and subdivision done, look into getting an expediter on your team. It'll cost you some money, but should save you tons of time, and of course time is money in this game.

Good luck with it. I'll be following your post.

I'm looking for a team of professionals to help build my real estate investment goal.

I need a real estate lawyer experienced in structuring creative financing deals as well as setting up LLCs.

I need an accountant or CPA to help setup my books and tax strategies.

@Mark Gottschlich

Thanks for your post. I'm interested in learning about and getting involved in development in San Diego. I found one distressed property in Ramona. I drew up some ideas on how to buy it on a short sale, demo the uninhabitable house and pool and develop the property. My problem is I don't have any experience with any of that. I'd like to connect with you and work with you, if for nothing other than learning how to do these things.