New Homes

Is speculative development lucrative today?

The answer is yes and it have always been when you follow the basics: buy at the right price, build what works in the area.

When you venture off this path you risk reward on your investment. A+ locations are worth the extra expense, building to a larger market instead of building to your own taste, design verse cost to build analysis. I have built numerous speculative homes, my first two significant homes were in a B-B+ locations and I learned my lesson.

The house above in the picture was built on 4 acres in a A+ location. I leveled the original house graded the entire property and located the new house in the center of the property. I built a 6ft tall stone wall along the road frontage and added entry gates.

Timing is key to success, something many developers do not take in consideration. Time is the enemy in speculative building. Interest on money borrowed costs more every day. Days on market hurt the appeal of the house, 260 days and the house begins to feel tainted.

I have built many houses rushing to complete the house for a certain buyers season. If spring is your strong buyer market then you want to be 100% finished before this time so you can flip your investment. taking your time and missing this timing can cost you another year of interest.

Everyone has their own business strategy, my strategy is the same as when I built the house above. Purchase land at $4.5M, construction/development cost $4.5M, build time 6 months from permit to C of O, sold in 2 weeks $18.5M.

My investors make money and I make money for the risk.

Smart purchases are where you make your money. Pay to much and you lose, pay to less in a lower level area and you lose. Find the area you can afford to play in and step on the gas.

For more information contact Iridium Development

561-597-0021

info@iridiumdev.io

Real Estate Real Estate Development