The Three NUMBERS:
First. Find out what the surrounding
properties sell for per SQ.FT (or m2)
Second. Calculate on how much you
pay per buildable SQ.FT (m2) of LAND
Third. Get hold of the costs for the
development. Ask for estimates on
– the build – infrastructure – county
Add the costs and divide on the
number of sq.ft. (m2) you are building.
Want to start of small?
It might look like this:
A lot for $1 000 000 allows you to build 10 000 Sq.Ft
Avg. costs = $160 per Sq.Ft. Total cost = $160 * 10 000
Infrastructure and administration = $ 200 000
TOT. COST PER SQ. FT: 2 800 000/ 10 000 = $280
Go or No Go?
This video was shot in Channelside, Tampa.
The average price per Sq.Ft in Channelside
is around $ 380.
If you can develop new housing for $280
there is a potential profit of $100 per Sq.Ft
If there a margins of $100 or more there
you have a good investment at your hands.
Find a deal and hand
it over to a developer
for a commission.
Learn more here:
