You might want to be more specific when you use the term South Bay. Both the San Francisco Bay area and San Diego have a South Bay. As you can see from your first two responses, they came from Northern California. When I use the term South Bay, I always specify the Los Angeles South Bay, this prevents any confusion.
And yes, cap rates have once again slid below 5. Seems we saw this before the last crash. I wonder what we should take from this new development.... more
it will largely be a function of where in Redondo Beach you want to build and the level and quality of finish work. you also have to consider what is on the land currently and the cost of removal of that structure. if you are building on a hill or let's say Hollywood Riviera, most likely more expensive than a flat lot in north redondo beach. best to think like a builder who may try to buy a lot for 25-30% of what the finished project will sell for and work backwards from there. while those numbers may not pencil out exactly because you won't have the expense of immediately reselling the house (I assume you want to live there) you don't want to over spend along the way. assume $250-300 sq ft all in (not counting the land) although there are certainly builders who will quote you higher or lower.... more
I have a lender who is the ceo of the direct lending company who does these loans for situations just like this. She can help you. Call me at 310-429-4170 or email me at email@example.com
We have helped several people in this predicament.
There are several options, all of which can be explained to you and you can choose
which one best suits your needs.
Real Estate Network Group
2601 Airport Drive #120
Torrance, Ca 90505
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