Can Anyone Tell Me If It's Possible To Assign Development Deals To Builders?
I have found some very profitable land on a lake. It's a great place to build some homes. Right now there is a run down house that is not liveable. I have contacted the city for the building possiblities and it is zone R2. That's the second residential zoning for multifamily housing. I have gathered all the subdivision papers and assested the profitablity of duplexes or twin homes. Right now we stand to make 200-220K with two twin homes on the land. The major problem is starting a project like this with not much money. I have also talked with a couple of builders about the cost of demolishion and rebuilding. Does anyone know how to get around the little money problem and make this deal happen? Can I assign the deal to an investor of some sort? If so, what kind of fee should I charge for the due diligence and finding this property? Do I focus on giving the deal away for a fee or sticking in there with someone to try and get the bigger percentage of profit? Any advise would be helpful and apprecitated. Also does anyone know what kind of financing might be available for me? Thanks. :-?
Here is a thought.
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Get an idea of what you want to build and get it priced by some GC's.
Partner with some first time home buyers with decent credit. Get them to apply for a constuction loan for owner /builders. Partner with them 50/50, 60/40 or whatever you can work out. Many of these loans only require 5 -10% down and several are 100% financing. They do require you to pay for some fees up front but promise to reimburse as construction commences.
You will be responsible for overseeing the construction and save as much money as you can through your subs and GC's. You should be getting those funds that you saved back at the completion of the homes or the sale of the homes depending on what bank you use. Sell the homes after they are complete and split profits. If the homes are in the right location, it is possible they will be sold before completion.
Just a thought.
Good Luck
Ren