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buh_buh
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Anyone ever work with a builder on an infill? quote:

More specifically, I've heard of people who own 50' lots and work out deals with builders where you effectively "give" or sell half the property to the builder to build a duplex on, and in exchange you get half of the duplex and they sell the other half. I haven't run any numbers for what this looks like, but has anyone done this or heard of anyone that's done this? Is there (much) incentive for the land owner to do this, or are there builders providing any sort of incentive to go in on a deal like this?

I see that the builder isn't tying up their cash in land, but is there any more incentive for them to do this? Are you as the current land owner going to get any incentive from the builder to do this?

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Old Post 03-29-2017 11:24 PM
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Marsh
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quote:

I've done this. The deal we ended up working out was to build two attached townhomes. Basically I owned the lot and we agreed to split profits 50/50 on the townhomes. He paid for all the materials himself and arranged the construction financing, trades etc. out of his own pocket.

Worked out well for us, I've also heard of contractors/builders who basically take a flat management fee to oversee the construction, and no take of the profits. heard of the fee being anywhere from 50k-100k depending on project size.

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Old Post 03-30-2017 12:13 AM
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speedog
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quote:

Attached townhomes? Another term for duplex?

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buh_buh
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quote:

Marsh, did they offer incentive for you to do this? Did you have say in what the layout or anything looked like?

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ExtraSlow
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quote:

In my area, a 50' lot with a tear-down house on it si worth ~450k. Build a pair of attached 1900 square feet houses, sell each side for ~750,000. No idea of the cost of materials and labour, but there's got to be some profit in that 1 million or so bucks.

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Marsh
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quote:

Originally posted by speedog
Attached townhomes? Another term for duplex?



Yeah my bad I meant duplex

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Old Post 03-30-2017 03:58 AM
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quote:

Originally posted by buh_buh
Marsh, did they offer incentive for you to do this? Did you have say in what the layout or anything looked like?



Yea we were not building it for ourself but to sell. So it was a tradeoff, we were not experienced builders or have the know how to build. So he took care of all that stuff, incl. design, materials etc., that was our incentive. Homes sold quickly for above list so it was good for us on that end...all we had to do was the finance part.

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Old Post 03-30-2017 04:01 AM
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ercchry
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quote:

If you own the land out right just get financing, owning the land is basically the down payment, p+1(ish) interest, but payment is interest only... converts to a traditional mortgage after build, then pay a builder their $175-250/sqft and be done with it

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roll_over
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quote:

Being in the industry you can definitely work out pretty lucrative deals but unless you have some incredibly expensive land there isnít going to be someone who gives you a free duplex for half a lot.

Some of the cheapest infill builds run around the $400,000 range and can skyrocket if you add any extras or anything better then basic appliances.

So, your lot entire better be worth north of $1mm to make it worth it to someone to build your house for free. Also, if your lot is worth $1mm then the house being built isnít going to be a $400,000 cookie cutter.

If you want more detailed info you can pm me.

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quote:

Originally posted by ExtraSlow
In my area, a 50' lot with a tear-down house on it si worth ~450k. Build a pair of attached 1900 square feet houses, sell each side for ~750,000. No idea of the cost of materials and labour, but there's got to be some profit in that 1 million or so bucks.


Yeah its easy. Anyone can do it. And you'll make killer money.

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cherpintow
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quote:

We're just at the beginning of the process right now, and it's a lot of work depending on how much you plan to take on (e.g. design, surveys, permits, demo, subdivision etc).

In our situation, there are two couples who bought the initial lot, and we are tearing down to build a duplex. We are just about ready to sign with a builder. Almost all of the builders cost structures we've seen are cost plus, and it's usually around 13-15%.

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buh_buh
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quote:

My expectation isn't that you end up with a free duplex. Just wondering what the approximate cost would be to end up with one half of it if you work with the builder. Whether its $100k or like $400k.

Rollover, when you say $400k to build an infill, does that include land?

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Old Post 03-30-2017 03:37 PM
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quote:

Originally posted by buh_buh
My expectation isn't that you end up with a free duplex. Just wondering what the approximate cost would be to end up with one half of it if you work with the builder. Whether its $100k or like $400k.

Rollover, when you say $400k to build an infill, does that include land?



I've been shopping around a bit lately and most quotes I've been getting are in the $250/sq ft range, all the way up to $325/sq ft (all-in cost including project mgmt, demo, garage, utility tie-in, finished basement; based on above ground square footage. But this is for a level of finish appropriate for a $1.2MM detached house).

So if you're doing attached at ~1800sq ft per side, his $400k number sounds like purely build cost for one side.

I've heard people spitballing numbers as low as $150/sq ft to build, but I'm guessing that's for a really low quality house from a really shitty builder, and not including mgmt fee.

Would love to hear some other ballpark numbers from other people in the industry or who have built.

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cherpintow
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quote:

I think you'd be lucky to do it for $400k all in per side with mid-high grade finishings. That's what we're finding anyways, quotes have all been closer to $430-480 per side all in for a duplex at 1870 square feet without factoring in the cost of land. You can do it for cheaper if the plan is to flip it, but you have to be careful about underbuilding for the community you plan to build in.

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Xtrema
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quote:

Originally posted by Strider


I've been shopping around a bit lately and most quotes I've been getting are in the $250/sq ft range, all the way up to $325/sq ft (all-in cost including project mgmt, demo, garage, utility tie-in, finished basement; based on above ground square footage. But this is for a level of finish appropriate for a $1.2MM detached house).



Wow. I was quoted $200/sqft before the economy when south. WTF is causing the increase?


NVM: Reading > me. All-in-cost including lot.

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Old Post 03-30-2017 06:19 PM
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Marsh
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quote:

Originally posted by buh_buh
My expectation isn't that you end up with a free duplex. Just wondering what the approximate cost would be to end up with one half of it if you work with the builder. Whether its $100k or like $400k.

Rollover, when you say $400k to build an infill, does that include land?



Ours was around ~$280-300/sq ft for duplex with high end finishings. each side was about 2900 sq. ft in size at about $1m each

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Old Post 03-30-2017 07:10 PM
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C_Dave45
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quote:

Originally posted by Xtrema


Wow. I was quoted $200/sqft before the economy when south. WTF is causing the increase?


NVM: Reading > me. All-in-cost including lot.


You're "per foot" cost never includes the lot.
Average cost for a decent home in the inner city starts at about $250 and goes up.

You can't put a $150/sq ft house on an inner city lot where the going rate will be upwards of 3/4 of a million bucks for a duplex.

I'm doing one now (SFD, 50 foot lot), just below 16th Ave on 6a street NW where the building is $450/sq ft. That does not include lot price. The old house was bought for $600k and demolished.

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Old Post 03-30-2017 07:44 PM
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quote:

Originally posted by Xtrema
Wow. I was quoted $200/sqft before the economy when south. WTF is causing the increase?


NVM: Reading > me. All-in-cost including lot.



All-in excluding lot for a mid-high end infill... Maybe differences in level of finishings? I've also been told that the costs for good trades hasn't gone down (the good ones are still busy) and that materials have gone up thanks to our shitty dollar. Not sure how much to believe that.

I've seen one trick from a builder where they quote $150-$200/sq ft, but reading the fine print, they consider it "per developed sq ft", so they include the basement in their calc which isn't the same metric anybody else uses.

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Last edited by Strider on 03-30-2017 at 07:50 PM

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Old Post 03-30-2017 07:47 PM
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quote:

Originally posted by buh_buh
My expectation isn't that you end up with a free duplex. Just wondering what the approximate cost would be to end up with one half of it if you work with the builder. Whether its $100k or like $400k.

Rollover, when you say $400k to build an infill, does that include land?



Land will run you 600k+ on the south side and 550k+ on the north side

You would have a 50x120 lot and can maximize your lot coverage (45%)which would get you roughly 2000 sq feet per unit plus basement

Being you are not a builder I think you would have to spend 200-225 sq foot

Build cost of 400k per side + garage of 22k= 422,000 per side

You will have financing costs as well, pending on how you will fund the project.

Lot and build per side will run you roughly 720-750k if you don't hit any major speed bumps

If you buy in Altadore or Hillhurst add 50-60k per unit as land is good money there

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quote:

Originally posted by JordanLotoski
Lot and build per side will run you roughly 720-750k if you don't hit any major speed bumps



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