For a lot of people, envisioning how to use land for housing development is a risky investment with tons of upside. For Michigan real estate expert Chase Rogers, it’s been a major part of how he has taken the market by storm. According to Rogers, there are a few unwritten rules about how to approach speculative developments.“First off, you have to know that you are inherently taking on a lot of risk, as you have to put up a lot of money initially, and then it’ll take at least 15-18 months before you will be able to bring that house to market, and in that time, the housing market can change substantially,” Rogers said.
Knowing what to look for and having your expectations baked in at the start is important in this arena, according to Rogers.“You really want to be able to sell the property for four times what you bought the land for, and at that point, you will probably get about 20 percent return on your investment total,” Rogers said.
The way to approach a speculative development also depends on the price range of the property. In Rogers’ case, he has been looking for higher-end property, which also comes at a bigger risk.“What I really look for is grade-A locations that are walking distance to Birmingham, for instance, where the surrounding homes are going for more than two million dollars,” Rogers said. “From there, I actually try to push the envelope a bit while still remaining tasteful by coming up with something that is a little architecturally different than its surroundings. This may narrow the market for the house but the hope is that somebody would really like it and be willing to pay a premium for it.”
This willingness to be risky is a big reason why Rogers has been able to make so much noise in the real estate market, despite only being 29 years old and in the field for 6 years. “I recently bought a lot for about 615 thousand dollars and was able to turn it around for 2.8 million dollars,” Rogers said.
Rogers hopes to be able to make more deals like this in the future, and that his advice will allow others to get in the game and be successful as well.
Chase Rogers Media Contact: [email protected]
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