Hi,
I am a Small General Contractor in Southern California. I purchased acres of land with sewer, power, water, roads, etc before the big Builders figured out that the Salton Sea was in the process of a renewal.
But I still have problems with ultra-conservative banks appraising the vacant land. Being a small builder, I am Land Rich and Cash Poor!
What is my best tactic to access the Capital I need to complete MultiFamily and Single Family Developments on my property.
from what i was told that it would be quite a while before they do anything to the Salton Sea…you’ll probably have to hold onto that land for 10-15 years before its going to be worth any value
The holding period you mentioned is a little outdated. Homes are already selling in the $300K range on the west shore of Salton Sea. If you check out Realtor.com you’ll see land prices have already appreciated well above $30K/Lot.
My question is directed more towards Finance Strategies for MultiFamily New Construction not the Value of the Land. That has already been established. But thanks for your input.
ok, i guess i more less meant that it is supposed to be alot longer than they have said before they start cleaning up that lake. I even think that you could probably make some decent money by building houses and selling them down there. Alot of people simply cant afford to buy homes in the Coachella Valley and there are people that will commute 45 min. to Palm Desert or wherever. I would maybe try building a home on a piece of land down there and try selling it for a $25-$30,000 profit. I know Desert Pacific Properties has either bought some land, or have been scoping areas of land out to buy down there. It definitly has potential down there if they ever get that lake cleaned up and the horrible smell out of there.
Yes, you’re right. There is a definite market for affordable homes in the Coachella Valley. Rental Properties to fill the gap are insufficient also.
Several Long Range plans for clean-up of the Sea are on the table. But meanwhile, being a Salton City resident, I can say the much maligned Sea isn’t the perpetual “rotten egg” everyone says it is. All I see “currently” underway is the influx of more builders, new homes, new development, and increased tax base and renewed infrastructure. It will take years for the general public to change their perception of the sea.
Sort of like the Chicago Bulls. Even when they had Michael Jordan on the team , the public nor the fans were true believers of success on the distant horizon. No one wanted to be associated with the Bulls until they were obvious “winners”. Such is the case with the Sea. But by then, it won’t be affordable.
There’s another meeting in El Centro tomorrow on the “development plan”. I’m sure The Desert Sun Newspaper will have a write-up about it. Probably 80% negative, but at least they bring attention to the Sea. Stay tuned . . .
yeah, like i said, you can make some money off your land now, but if you can afford to hold onto it for awhile, then you can probably retire off of it. Just wait till places like PGA West build some very nice golf courses down there and the snowbirds start buying down there.