Subdision In Central, FL Need To Flip!
Hello all,
I have a subdision in Central, FL under contract. The subdivision is platted, 100 lots that are 1.25 acres a piece, sewer and water, and high and dry. I have it under contract for $4.5 million and want to flip it for $7million. The subdivision is worth well over $20 million (this is based on the price of a sub division near by that is being developed). How do I go about finding developers to flip this to? Thanks, Tim[ Edited by REInvestorInTally on Date 03/14/2005 ]
First, you need to list it into our database of properties for sale. Listing your property is free.
Tim,
I have some questions.
Does "platted" mean the property has gotten all necessary subdivision approvals and the subdivision plan has been recorded--in other words, approved but without horizontal site improvements--or something else?
How are you figuring the $20mil value for the other subdivision--is that the price the builder paid for the land--and how many lots was that subdivision?
What do you feel realistically that a new home would sell for on one of your lots?
What are the per-lot horizontal site improvement costs that were required by the municipality?
Nancy
Hi Nancy,
Does "platted" mean the property has gotten all necessary subdivision approvals and the subdivision plan has been recorded--in other words, approved but without horizontal site improvements--or something else?
Yes, the owner says that he has everything including the certificate that is needed to start building.
The owner came up with $20 million. I believe its more than that. Houses start in that area at $500k. Thanks, Tim
Hello Tim,
I would like more information. Can you please contact me? **Please See My Profile**
Thanks, Shannon
Hello all,
Hi Shannon, there is no contact info on in your profile and I since I still have a free acct I cannot access PMs. Thanks, Tim
Hey Nancy,
The seller is selling because he had a near death accident and wants to liquidate his assets. There is a RE attorney in town who develops and he is looking into it. According to him everything she has said thus far is true. I have no idea what the answers to your other questions are. In all honesty this is above my head, sort just fell on my lap literally. Thanks, Tim
Dear RE..Tally:
As a developer in Orlando, I am very interested in knowing more about this. Do you have anything you can e-mail to me? My email address is **Please See My Profile**
Thank you
FR
Yes REinTally Tim,
I have been trying to get more information as well from you on this land in Central FL.... please email me too.. my email is posted in my profile. Thanks Shannon
I know nothing about developing land, but i do know that all owners lie about the value of their property. you have to get the value of the land independantly verified before you put out any of your own money. you also need to get educated fast, or have an unbiased, more knowledgeable person on your side. you are unable to answer the most basic questions, so how are you going to sell this deal to someone else or know if you are getting a price. the seller and the buyer will smell a sucker if you can not at least talk the talk.
To get developers
1) there is probably a developers association in central florida with a list of members. Try www.google.com on the Internet.
2) look in the yellow pages.
3) drive around and find the developers of other projects and give them a call.
The numbers look as if a developer would be paying $200,000 for each lot if it is sold for $20M. Even if the lot with a house would sell for $500k, the lots seem quite pricy.
ddstew
Sorry Folks, I do apologize for not responding earlier to this thread. My value of houses at $500k/a piece was off. I will admit that I am a newbie when it comes to development, therefore I have enlisted the help of an RE attorney/developer. I was told that this area will support "landing strip homes", similar to what they have on the back end of Ocala, FL. I was also told that these homes would be sell able at $1-1.5 million. I have now listed the property for sale on this site. Thanks, Tim [ Edited by REInvestorInTally on Date 03/23/2005 ]
Contact me please. I am a developer in Orlando area also.
Also, if this is a legit deal, Brian in our Lending Depeartment can help you get the financing for this particular project. Click on the Lenders tab up top and start a project.
Or click here:
http://www.thecreativeinvestor.com/commercial/modules.php?name=LenderFinder&op=loanprojects
Brian analyses purchases and will give you a thumbs up or thumbs down on this if you can provide the documentation.
LOL
Good luck with that Tim...[ Edited by jorge121 on Date 04/27/2005 ]
Jorge I would love to see what you really said. LOL
Oh, is the $3.5 million the total purchase price or is it the equity portion only. And the "deep pockets" part of your post makes me think you might want to hit this guy up for more money down the line. Do you mean deeper than $3.5 million or is that your whole deal?
Thanks GaJohn. Let me give a little more. There are 2 yrs left on a 5yr $25mm contract with the army, more contracts being negotiated with the rest of the armed forces and now individual states. The cash flow last year was $600,000 and is expected to be close to $1mm this year. This is the only company that makes what they make so well that the government does not send their own inspectors to the company to check the shipments anymore. All I can say, For now anyways, is they make lines of clothing.
I am very pleased to see such a well informed response to this question. I have been approached numerous times to fund such projects by people with more enthusiasm than expertise. And when I ask them the hard questions, I just get a glazed look in their eyes . I suppose they expect someone with this much capital to invest, just will fork over the cash to a person just because they think there is a deal. My question I always ask someone who proposes deals to me is, WHAT DO YOU HAVE AT STAKE IF THIS FAILS?
This is a venture capital project, not real estate. I admire your desire and enthusiasm. I really do. I just hope you are able to answer the tough questions . And put something at stake to get this capital.
When I buy businesses I try to get the owner to carry back most or all of the financing on very creative terms.
There is a saying "If you truly find a great deal, the money will come. " There must be too much risk in this deal to attract the money so far. I wish you good luck in getting this funded.