HOW TO MAKE SURE YOU WIN BIG IN REAL ESTATE DEVELOPMENT 😳💰#realestateinvestor #entrepreneur #short

You want to know what the comps are, right? Whatever you're looking to build, what are new construction properties selling for or if it's a rehab, what are the after repair values of these homes? And that's for just the market value of that home. The numbers when it comes to rehab or new construction costs. Yes, you need to know that going in and these are going to fluctuate depending on the builder, depending on how you structure the partnership with the builder. Some builders, if they partner with you, they'll say hey, I'm going to charge you cost. The cost for them might be $100 per square foot, but to the general public it might be $175 per square foot. So you want to get clear on you know what the cost is. And if you're going to give them an equity share, I would say they should be charging you cost per square foot to build your home. So you do want to know those numbers. The main thing is does it meet the qualifications also of a typical lending or development is probably going to be about 60 to 65% of the ARV minus the building cost and the reason why it's a little lower.