Help Needed - Investing In Neo-Traditional Comm.
I am a newbie to the RE world as I have only one rental. Recently I was calling around to diff. property mang. companies when I stumbled across a builder who just got approval from the city to begin a 40 acre "Neo-Traditional" community. The area where this is being built is booming extremally fast and it seems like a lucky break that I have been given first opportunity to invest. I've talked to the builder and he put an investment package together for me with the diff. types of buildings that will be built along with the est. prices. The prices seem a little steep plus this is the first type of community of this sort that is being built in the area so I'm not sure how well it will be received. Also, do these types of properties appreciate as much?
Sorry so long, but anyone who can advise please do so as I need to jump on this quickly!
welcome to the board...please define "neo-traditional" since that can mean many different things to many different people. If by "neo-traditional" you mean self-contained living community with shops, homes, office space, etc I would be interested in trying to get invested in on the retail or commercial side of the venture. Depending on the layout and area it could be a win-win for a retail store or restaraunt since they will be able to draw from the outside as well.
Need more information though to give my "nickels" worth for now you just got my .02 worth
PD
Yeah you basically nailed it on the head for what I'm talking about when I say Neo Traditional. It will be 40 acres with single family homes (2 bedroom), townhouses, condo's and apartment complexes. The ground level of the complexes will be commercial with such things as dry cleaning/coffee shops/kinkos/ect. The idea I guess is to minimize vehicles and make it walking friendly by having lots of parks and ponds and common areas. The lots for the SF homes are 50x125 so they are small and there is no room for expansion with the common area all around but then that also means a commercial building won't get built in your back yard. This is located less than 5 minutes from a new mall that is extremally popular, about 10 minutes from a major university and 2 minutes from a major freeway. The population is definitely heading that way so the demand will be there. But I am far from being a big time player and doubt that I could get financing for any of the retail/commercial properties. At a minimum I want to get my feet in the door by buying one of the townhouses or single family homes.
These types of developments are becoming increasingly popular as they reproduce the "old time community" feel and convenience. It sounds like it is in a good area (major univ, freeway, etc...). If it makes sense to you and it doesn't "stretch" you too thin I'd say go for it. But don't put money into this that you can't afford to lose or that will send you into bk if something happens. Run your numbers, talk to some others who have invested in similiar types of developments, and then trust your decision.
PD