Development Land Costs
I was wondering if any of you know how much per acre is too much to develop a small tract of land for multi-family units?
I found a piece of ground that is approx. 4 acres/$150,000. I guess it all depends on how many units I can get on it? Let me know what you think?
I am sure that the type of copy would depend on market demografics and sofistication.
I send out 2-3000 pieces a month for 2-3 leads that turn into deals these days.
some times it is several times that.
When I get to their house they usually have at least 75-100 letters.
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When I ask people that are using it in my area they say it works "great". Then they tell me that it is about .25% successful
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you may want to flip this post over to the creative financing section or wholesale section to get your answers, but some questions
What kind of props are they
How many
sfr,duplex, quads, apart houses, or what.
what area are they in?
how much, what are the comps?
look forward to the answers
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thanks for the response. All of our properties are single family residences located in Huntsville, Alabama. The prices vary from 75,000 to 330,000. (these are our retail prices.) We drop our wholesale prices down another $20000 depending on the property. With the exception of the $75,000 price on one of the properties, our retail pricing still leaves equity on the table for the new buyer.
I am always amazed at people that can not read what this forum is about???????
Random Ramblings
Talk about anything EXCEPT real estate.
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NC
Moved it-
Chris
One important note, homevestors use direct mailing as well. They use geographic and demographic.
You only advantage to those guys is to come up with a letter a little more intriguing, than,
"I am a serious investor that is looking to buy property in your neighborhood. I can give you all cash for your property as quickly as you need it. But an all cash deal would mean that i could not pay you full price for you property.
If you are interested in selling call me and i will come out and evaluate your property."
That is their typical letter. How do i know, because i get their letters all the time. They are sending letters to me because i have been in my home for over 15 years and they see the ltv is low.
They strictly play the numbers game. If you play into the hearts of your market, then they are sure to not be any more competition.
Right, and the only way to beat your competition is to out work them.
These are modern times. I would use the internet as much as possible. My best leads and the lowest cost per lead come from our two websites.
One is an affiliate site that has made us money each year for a little bit each month ($100 or less) www.webuyhousesforcash.com
There are a lot of these sites out there and in fact more of this one in other areas than mine.
We have also developed our own at a cost of over $8000 www.homechamps.com
You have to start out with pay per click to drive traffic but as you build organically you start to get more leads that way as well.
In marketing the key is to get them to contact you and it generally takes several contacts to get the deal. Make sure that you put your web address etc. on your advertising.
That will get them to your site and hopefully lead them to you.
In any event you will have better luck than with a mailer alone..
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