Hello. I don’t even know if this topic is appropriate for this sub.
So a little backstory, my father, owner and general contractor of construction company, and I, future contractor and architect, are looking to develop 12 lots on a parcel across the street from our house. But we do not know how to go about finding someone with the ability to partner on such a project.
We know the owners, and back in 2000 my father developed a 19 lot neighborhood. Which we live in. Our neighborhood is on the gulf near Tampa, 70 ft above sea level, 10 min drive to the water, 20 mins to the beach with nationally accredited schools. We hope to recreate the traditional craftsman style home with large front porches as we did previously 18” Birdseye view of our neighborhood .
The property owner because he knew us, wanted to give us the first opportunity. We proceeded with preliminary plans, meet for a pre-application with the county. Reached out to civil engineers, but have hit stand still. With my parents having 4 children (they are good parents but we went to Disney one too many times lmao), we are not in a position to finance this project ourselves.
We are currently looking at list price of $1.3m for the land, but believe we can get $1.1 to $1.15m. With an estimated $200-300k development cost. At 12 lots the hard cost is 125,000 per lot. Lot prices are selling at an estimated 140,000-185,000 per lot. Homes will be minimum 2,500 sq ft homes and starting around $570,000. With comps to justify pricing and demand. Other developments are 75-85% sold within the year of listing.
We are seeking a partner to help finance this and expect to make their return with the sale of the lot, as we are not in a position to pay monthly. This is a risk all would undertake. all development and construction would be exclusively contracted through our company. All homes will be contracted and paid through construction loans by the owner.
More backstory on father. Started working overseeing construction of neighborhoods for US homes. Worked in commercial and residential construction for RJ Bunberry. Has had his own own custom home construction company since 97? (Might be off by a year or two). Now recently working for a company based of Detroit mostly dealing with commercial interior builds. Currently netting close to 35-40% of the company’s gross revenue single handily (very large national clients mind you), while not receiving recognition he deserves. I know he wants to focus on retirement. Working from home this project is in our backdoor, and I know he is beginning his own midlife crisis. I work with my father daily, and I just want to help his best interests. Just need to figure out how to get in communication with someone interested in developing. We have put together a packet too to express this a little clearer when we do have someone interested.
tldr: need help how to find an investor for 1.5m to develop 12 new homes. Returns to be paid and based on sale of lots, an estimated approximate 15% return in 1.5-2years. We would be exclusive builder for these 12 homes.
Thanks for reading if you got this far.
Submitted June 21, 2019 at 09:33PM by -Phillisophical http://bit.ly/2Ivgei2
