Post by Linda Ray Miller on Nov 15, 2011 12:39:03 GMT -6
From Diana:
Hello,
Randy had questions about how our group purchases a tract of land so I was on another call with Chuck tonight spontaneously.
He recommended we get the property under contract with a 90 day 'look at it' and then begin to put money down on it over time to move the project forward such as $5,000 every 3-4 months or so over a time of 1year to 1 and1/2 years as we are getting approvals and then getting construction financing and starting construction and selling the homes.
An alternative would be to pay cash for the property at a reduced price and that would require an outside investor or an investor inside our group.
He said we need to be working on getting financing right now to see how that is going to come together. We need to tell the seller that we have the best chance of getting zoning changes and financing then anyone else in the market.
We have a safety valve if we find we can't sell it all out before construction is to start. Once the approvals are in place the property has more value and can be flipped/sold to someone else for a profit so we could actually come out okay or with a little gain.
We need to hold a meeting in which those who are interested on one particular property can express that interest and we will then do a blind survey by allowing people to write on a piece of paper how much they think they can contribute to the project and at what times.
Getting our documents together for a zoning approval will take about 3 workshops over about 3-4 months and with us needing architectural/engineering drawings we would wind up spending no more then $100,000 for all of that. That figure may also include the money we would need to put down on the property over time to hold it.
Those interested in an urban community need to go through an approval process with a lender to get a letter of approval determing qualification.
So, here we are, much to do. The budget/finance committee needs to help us get organized on the loan approval process.
Hello,
Randy had questions about how our group purchases a tract of land so I was on another call with Chuck tonight spontaneously.
He recommended we get the property under contract with a 90 day 'look at it' and then begin to put money down on it over time to move the project forward such as $5,000 every 3-4 months or so over a time of 1year to 1 and1/2 years as we are getting approvals and then getting construction financing and starting construction and selling the homes.
An alternative would be to pay cash for the property at a reduced price and that would require an outside investor or an investor inside our group.
He said we need to be working on getting financing right now to see how that is going to come together. We need to tell the seller that we have the best chance of getting zoning changes and financing then anyone else in the market.
We have a safety valve if we find we can't sell it all out before construction is to start. Once the approvals are in place the property has more value and can be flipped/sold to someone else for a profit so we could actually come out okay or with a little gain.
We need to hold a meeting in which those who are interested on one particular property can express that interest and we will then do a blind survey by allowing people to write on a piece of paper how much they think they can contribute to the project and at what times.
Getting our documents together for a zoning approval will take about 3 workshops over about 3-4 months and with us needing architectural/engineering drawings we would wind up spending no more then $100,000 for all of that. That figure may also include the money we would need to put down on the property over time to hold it.
Those interested in an urban community need to go through an approval process with a lender to get a letter of approval determing qualification.
So, here we are, much to do. The budget/finance committee needs to help us get organized on the loan approval process.