Project Developer Debut
I live in a historic town that thrives on tourism and preservation, i inherited 3+ acres with a house next door to my 1.5 acres and my house. I want to move the house I inherited and build a small subdivision of around 6 houses. I would like to mimic an area the city developers have built across town. That area is about 2 acres including the street and sidewalk and have 7 houses 1,100 sq. ft. The cost per house runs around 140,000. My husband is a contractor. I need investors or ideas on how to start the ball rolling???????????????
For investors you can look at the lenders tab..........however to start the ball rolling you need to contact your respective, planning, zoning and building department for their specific requirements. They should also give you an outline of what you need to go forth with the project and an idea of the feasibility of your layout.
Find out in advance what they may want to see prior to meeting with them in person.
GL
NC Yank
Some thoughts...
Have you investigated the cost and feasibility of moving the existing house and also the availability of suitable contractors to do this work? This can be very expensive.
As for the land, I suggest you start by nailing down what the current zoning of the property permits--uses, min. lot size or density. This info is available in the municipal zoning ordinance and zoning map. Also talk with zoning officer after you have reviewed the zoning docs concerning several issues, including whether either/both of the parcels are grandfathered or restricted as to use, lot size, etc. Don't understand the $140K--are you saying you can build an 1,100 SF home for $140K?
Also, for subdivision, you should check municipal subdiv. and land development ordinance--municipal engineer is the one to whom you should direct your questions.
thank for your responses. I have checked into the zoning requirement and are still calculating the land use requirements. I have contacted an individual about moving the house and are probably going to have it put on a small lake site we own. The statement about the 140,000 is that the houses built across town are going for 140,000. it will probably costs us 75,000 for construction of the homes. We have yet to cost out the road development, utilities hook up, sidewalks, permits etc. However at $65,000/ house and building around 6 houses we would hope to make a nice profit on development of the land. What do you think? I know it sounds very small time but the other builders in Madison are building $450,000+ houses, duplexes, or low income houses. Doesn't it seem if there is a need in the market we should do well?
When building several homes on a lot, you first need to do a little research. Here are some suggestions to get started:
1. Verify the zoning and determine what can be built on the lot. Check with the local building or planning department for this information.
2. In order to sell homes with independent title you will need to subdivide the land. Again check with the zoning/planning/building department.
3. Put together a proforma to determine if building on the lot is profitable. You will need to gather market data on what you can sell the homes for and all the costs involved in building the houses. Don't forget the "soft" costs (architecture, engineering, loan costs, permits, etc.) - often 30% of the total construction costs, depending on your area.
That should get you started.
Why don't you instead of moving the old house incorporate it into the new development. Instead of 7 houses build 6 houses. Is this house on the historic register? Instead of absorbing the cost of moving why not just tear down the house if it is not worth rehabbing.
Thanks again for the replys. I want to move the house because it is my parents home. they both passed away last year and it is pretty much all i have left of them. It is not a historic home only a 1,500 sf brick ranch. The house movers quoted $12,000 to remove the brick, move the house to the new location, and set it up again. This would be a place my family could go to relax. If it turned out my profit potention is enough to spend the $$ to move the house I would like to do this. Sentimental connections. If we couldn't move the house it would take up two lots instead of one and we would only have 4 lots to build on, according to the property restrictions in the zoning manual. The house is in excellent shape but isn't at all like the other houses we would like to start on the land. The city of Madison has extremely restrictive ordinances and are very careful how and who they approve, my impression is they would like to see the division of this property. The improvements to the neighborhood would greatly increase the "appeal" of the historic route some people take when touring the town, it would benefit a lot of people. I have contacted someone about building the road and sidewalks needed but haven't gotten an estimate yet, this I believe is going to be an enourmous task for an inexperienced developer. A newbie ( not sure about calling myself by that name)
sooo if anyone has more advice I am all ears???????