New Construction on modular homes - need help

[dtaiwo]

Hello All

I have been reading post on this site for months , and i think i am ready to dabble in to the RE market.

I have some land in the downtown ATL area , and i want to  start on development on them . I have looked into modular homes , and they look pretty good.  I want to build about 6 - 8  2000 sq ft  homes , and I have a few questions that i hope someone would help  me with.

1. I found a builder , that has built a few modular homes in the area , and i want to eduacate my self on what kind of deal if anything i should be discussing with the builder?
I would like to know what price range i should target for each house to be built for . I called the modular home manufacturer of choice excelhomes , and they told me that the homes come 90% complete , and for the design of choice , it will cost me btw 70 - 90 K depending on upgrades needed.
Now i know there are other things that need to be done by the builder e.g (Land/Lot Development - (Perk / Probe Test , Land Surveyed) , Foundation and Sitework , Exterior Finishing , Interior Electrical,Plumbing Connections,HVAC,Interior Finishing,Exterior Final Finish etc) . Just on an estimate after the modular home cost and the other work that builder needs to do , how much should i start to bargain each home for ?

2. Since i will be taking a construction loan for this project ,
After the home is complete and apprassed , how would i  get out some equity @ closing , and also get a good rate for the new financing,  Is there a way i can get the builder involved in this ?



Please any info on the above would be really helpfull

D-

 

[chrisbowei]

hello d,

YOU WANT TO FIND OUT HOW MUCH HE IS GOING TO BUILD THE MODULAR HOMES FOR YOU AND FIND ANOTHER BUILDER TO COMPARE PRICE THEN FIND OUT THE COMPARABLES IN THE AREA AND SEE WHAT YOUR PROFIT MARGIN IS.

ALSO CHECK YOUR PRIVATE MAIL BOX

[chett]

we `sell somthing on the same idea only panelized construction at a cost of 22 to 45 per square foot
check our web site www.realestateinvestorsdepo.com under invotive construction .we can put up your house a lot ceeper and more stylish 200 models to choose from then anyone anywhere ,everything is pre made under factory conditions and if you would like more info call me at 754-246-1967
ithis is the latest teck on home building and you will save money and make more on the tail end .

[MrJersey]

Why not condos----you can make more units.

[Mdhaas]

Financing for yourself and buyers is easier for modular houses that are put together on site.

You should shop a few other contractors to get a solid idea of costs.

[CircadianDev]

Good Idea!
I am in Maryland in the Washington DC Metro Area. I am also preparing to do the same exact thing that you are doing in ATL. However, I must warn you that before you do anything. You should first create an LLC or INC. Because you don't wanna be selling houses to people and have something go wrong that perhaps the builder did or something that just plain got overlooked and now your standing in court with you hat in your hand and your PERSONAL ASSETS on the line.  Now with that said. The first first thing your going to need to find out is the development cost of the land itself. Because what you are talking about is actually creating a subdivision (neighborhood) which as a whole different ball game than just buliding a house for you to live in. I know it seems that it would be as simple as that, and it is if your going to live in the house yourself...but your not. YOU SELLING to the general public and for that you need a builders license.  Even if your not swinging a hammer yourself.  This is also going to require a far amount of prepwork in regards to the land ie water/sewer/elect/road/curbs/clearing ect... and then the houses themselves. Don't be discourged, be careful and do your homework. Good Luck. Keep me posted on your progress.  Maybe we can help each other.