Builders Want To Build On My Land. What To Do?
I have 1.39 acres in atlanta. A real estate agent that we will be using is putting me in contact with some builders in the area that are interested in partnering on this, and build either 4-5 single family homes or 8-16 row townhouses . My question is how do we structure this so it is a win/win situation for both the builder and us (the owners). The land presently has a 2600 sq ft home on it, but we can demo that and make room for waht ever the think they can build. Any help would be appretiated.
Quote:
On 2005-03-14 13:51, mrbiggvestor wrote:
I have 1.39 acres in atlanta. A real estate agent that we will be using is putting me in contact with some builders in the area that are interested in partnering on this, and build either 4-5 single family homes or 8-16 row townhouses . My question is how do we structure this so it is a win/win situation for both the builder and us (the owners). The land presently has a 2600 sq ft home on it, but we can demo that and make room for waht ever the think they can build. Any help would be appretiated.
Mr. Big,
A few more specifics could help give you better answers. Since I broker land deals in Atlanta and also develop in Atlanta, can you give me a better idea where in Atlanta it is located? There can be a huge price difference between 4-5 detached homes and 16 town homes. What would the finished homes sell for, whether for detached or attached units? If you can go town homes it will almost definitely bring you more money. Unless you really want to joint venture the project for the back end profit, I would suggest just selling the property outright to a builder/developer and moving on. Unless you are in an intown area (buckhead, etc.) this is not a big project and I generally am of the opinion to sell stuff of this nature and just move on to the next project.
Give more specifics and we can give you more advice. In the end, your sales price will have to be a number that a builder can manage to do what he needs to do to make his money. Density will be the key to obtaining the highest price possible.
I am in that process right now.
I just contacted a few of the most popular mentioned by real estate agents in the area who do building. Then I told them what I have and asked for them all to submit a proposal of what they were willing to do. Mine is 30 acres and it had to be cleared as well as new septic and wells be done. The one who came in with the lowest out of MY pocket and best percentage on the whole deal was the one I went with.
In your case I would need mre details as surrounding neighborhood has a bearing besides all the red tape. The county may allow you to do BUT if you cant sell them then what is the in demand part of your area. I know my area would allow townhomes BUT I would have to keep a lot of them a LONG time and would have chose that way but more money and quick access is the best way hit get in and get ouot and move on too many deals to be done to mess with it.
My best suggestion is talk to the other person here who is DOING it in your area with his experience.
Just my opinion.