Another Funding / Development California ?
Newbie here and saw another post asking similar question. Came across an MLS ad for a 3/2 on 4 acres in an area where the urban sprawl is taking over this rural area. The price was reasonable at $190 k but the ad sais something about zoning allowing for up to 4 houses per acre.....so if I knew everything about real estate and development what would the possible potential be? New homes in the area are getting $180k-$215k for 3/2...Whats it cost to build a house much less 15 (I assume it is cheaper per to build multiple) again just doing my homework on this and asking questions to educate myself in aspects of REI that I am not up on.......Thanks
Brian
Sorry might be in the worng forum didnt realize I was in the Carlton Sheets Forum....
Development is the game the big boys play. I don't think it is incredibally hard but it takes experience and a lot more professionalism. I might consider marketing the home as investment property and selling it to an investor. You may even consider removing that house depending on a lot of factors.
Good luck but unfortunatly I don't have a whole lot of advise for you.
I agree about it being a big boys thing.......and know I am not there yet.....and not sure that is an area I am interested in just thinking it through out loud and asking some questions here.....
Here is your chance to be a star. Where is Bethel? Check with Planning and see what is present zoning on the property. Will they allow lot split or is it frozen. Will they allow cluster? You put in just a country road, lightly graveled and you then build three houses in cluster at the end of the road.
If such is possible contact me on my profile. You just might have your house for nothing. Just think you can move your inlaws in for really cheepy rent.
Lucius
Bethel Island Is in the middle of the Delta (middle of the triangle between Stockton, Sac, SF)
This is not in my area farther north where I own most of my rentals... I will call and see what I can find out.....never hurts to call.......
Brian,
I would like to maintain contact with you as well. I have investments in Stockton.
Maybe you can help me figure out if Lucius is an informed source or a reliable authority!
Regards,
Ed
Hi Ed,
When I first started out I looked at maybe investing in the Stockton area as it seems like it is still far enough from the bay area to not get the inflated prices that we are seeing out my way....How has that area been for you....PM if you dont want to talk via the forum....
Brian
Deasr Brian,
Ed is very close to you much closer then me. Also he knows the area and with this combination he is the man to help you get rich and wealthy.
My best regards,
Lucius
Well I found out that this property is zoned Medium Density residential and allows for up to 4 homes per acre. I was thinking more like adding 3 Manufactured homes and having 4 x 1 acre homes and then sell? But I am clueless as to cost for foundations and setup...anyone know rough figures for this??? I know there are other things as well permits, sewer/water hookups or septic installation as well as PG&E....how do you big boys put something like this together????
B[ Edited by BMan on Date 12/17/2003 ]
Bman,
I too am interested in getting into building manufactureds on infills in the N. Cal area. I've done a bit of research in the field and talked to other small investor/developers. Some say manufactured homes can save a ton 25% of costs but I've found that similar spec builts are not that much more. There is still a negative connotation regarding manufactured homes because of the poorly built mobiles back in the day so I am most concerned about turnaround time and resale when advertising a manufac. home. You have to disclose it is manufactured during the time of sale. I did speak with a small developer that has good experience in the manufac. homes in N. Cal and last I talked to him he was working on a small 20+ manufactured home subdivision up north towards Redding somewhere. He is expecting anywhere from 25-40K profit margin per house after all is said and done. I think the most you would save from doing manufac. vs spec built is the time it takes to build. 30-60 days for a pre-built. Otherwise I've found actual cost differences to be neglibile. But just like in any market, "if there is a need, they will come." If at all you are interested in seeing how a manufactured home is put together there are a few local manufac. companies in the area that do weekly tours of their facility. We did attend one in Woodland. Name of the company is Silvercrest. They have a site and a good Cost Breakdown List from Land to Foundation to Landscaping to Realtor Fees.. All in all, I can hardly tell the difference between a spec and a manufac. The manufactureds are even HUD approved and they have an official HUD inspector in-house and a QC dept to oversee the build before they move onto the next step. It's an interesting process. One thing I didn't like is the plastic plumbing instead of copper. But all in all it looks pretty good quality if not better than a spec. But again you have to look at the neg. connotation the public carries on these manufactured homes regardless of quality. HTHs. Shoot me an email if you want to discuss things further or what kinds of areas you are looking to put these homes on. There are some really high growth areas toward the central valley and up north past Sacramento. Good luck.[ Edited by Leo_Investor on Date 12/18/2003 ]
"One thing I didn't like is the plastic plumbing instead of copper."
Leo, Plastic plumbing is this days often used even on large multi unit condominium complex projects. Last long, installs fast, elastic, clean ... it's an excelent substitute.
Silvercrest seems to be a good choice. They realy makes some nice floorplans: http://www.silvercrest.com/
What I do not know and wonder is if they are the closest (to So. California) manufacturer?
Did someone figured out aprx. sqft cost of actual building? How much is going to cost to tow it, is something that also shouldn be enigma: Price per MI ($/MI) should be fine!
Rough figure (if someone know) is fine for initial speculative purposes. [ Edited by omega1 on Date 12/23/2003 ]
Just a thought. If you are considering manufacture homes/ mobile homes, they may not count as homes. My point is that the requirement may not be 4 per lot. You may be able to put more. However, if it is an upscale area, you may want to make sure they will let you plop down any. BTW, I think this is a great idea for you if you like the area, and are short on development funds. Instant cashish! PS Lufos is credible. If you have that kind of question, you may want to research it yourself...check out other posts from that person. Only you can do due diligence. DId I just say dodo?
[addsig]
If I understand correctly you are looking at RD4 property...So the rest is pretty simple.First comes the horse then the cart.First you need to know zoning requirements,and easements covering lot square footage and any CCand R's for that area.Are there public utilities?Sewer,water,gas and electricity?
Next you will need civils plans for the property lines and frame splits to take to the planning and zoning dept.
This may seem like a huge deal but its not that tough,its almost fun.
At this point you can begin to figure building costs,but trying to get a discount on a "by the dozen" deal will more than likely cost you more in the end.
If you have specific questions drop me a line,I may even have an investor to help with the develpoment costs.
Mike
BMan,
Maybe you want to let us know how did that deal turned out? Any news as of yet?
Sorry for not posting sooner but someone beat me to the punch. I was looking at this as a learning adventure from the start and must have found something that would work as someone else is doing it . I did learn a lot and still have my ears to the ground...
B