All Forum Posts by: Alfredo S.

Thanks @Chris Seveney thats very helpful. So what would be more realistic numbers in your opinion? And if the numbers made sense would this be a practical strategy?

Hi @Bruce Woodruff. I would agree with going the "cost plus" route vs fixed cost. However if the total estimated cost are less than the estimated sale price what would be the risk? Maybe a stupid question but I admit I am newb. 

Hi @Chris Seveney

Im currently looking at the central Florida area. Im based out of Orlando, but I've seen some good prices over by Ocala, FL. My plan is to hire a home builder, and I've heard that construction cost are usually around $150k. I understand that location determines land value, however, regardless of the land cost, why does location affect building cost? Shouldn't the materials cost about the same?

Hi. I am interested in flipping raw land, and I have some investor friends that recommended this strategies. But I'm having a hard time defining the process and calculating the numbers. So theres two ways I see this working. 

FIRST STRATEGY

1. Buy raw vacant in-fill land at market value

2. Adding value to the land by taking it through the pre-construction phase, meaning hiring an architect or engineer to draw up the plans and a mock up of the house, and getting the approvals and licenses to start construction

3. Selling the approved land for a profit to a buyer who is willing to take the new construction to completion

SECOND STRATEGY

1. Buy raw vacant in-fill land at market value

2. Adding value to the land by taking it through the pre-construction phase, meaning hiring an architect or engineer to draw up the plans and a mock up of the house, and getting the approvals and licenses to start construction

3. Selling the New Construction to a home buyer for the finished price. Getting 25% down and using that money to pay the builder. When the home is built pocketing difference in profit. 

FOR EXAMPLE: Selling the New Construction for 300k, buying the land for 15k cash, spending $150k building cost, that's $165k total in expenses. Using the 75k deposit (25%) towards the expenses, and paying the rest of the cost using investor money or hard money loan. Banking $135k in profit. 

I am new to the game but I'm very serious and I have a real estate license. Any advice will be greatly appreciated. 

@Tj Hines, @Jonathan Farber, @Cailyn C., I am interested as well. Please PM me

Thanks for the reply John. Could you explain the benefits of working with a commercial broker?

Hi. I am a new Commercial Real Estate Investor focused on 2 to 50 door multi family properties and self storage facilities. Im also a RE agent. Before RE I was and still am a CEO for a nursing school in Orlando, Fl, but I am new to the world of RE itself. Everything I've gotten from BiggerPockets has been GOLD, and I hope to really evolve as an investor here, make some great connects, and maybe trade a couple deals. 

[edited] My goal is to become the most aggressive buyer in Orlando, FL. 

Thanks

Hi Rich. Where do you find good deals then. Im having a very similar problem. I have all the financing i need, but i need to find deals that are worth it. Deals that have enough cashflow to support 100% financing. can you help please?