Best place to build and sell in Texas (Dallas, Tyler: real estate market, for rent)

[fredm6900]

I used to be a developer and builder in Florida. Lost most of my stack during the last economy recession. I want to build again but not in Florida. Based on searches, Texas seems pretty good for real estate developments. I'm thinking in Dallas area, not necessarily within Dallas city limit. I want an zip code where I can buy lots, build and sell fast. I'm also considering small commercial lots for market places where I can sell some units and keep some rented for income. Any suggestions?

[turf3]

Originally Posted by fredm6900

I used to be a developer and builder in Florida. Lost most of my stack during the last economy recession. I want to build again but not in Florida. Based on searches, Texas seems pretty good for real estate developments. I'm thinking in Dallas area, not necessarily within Dallas city limit. I want an zip code where I can buy lots, build and sell fast. I'm also considering small commercial lots for market places where I can sell some units and keep some rented for income. Any suggestions?

Well, you're talking about a metro area of 7 million people that's also one of the fastest growing metro areas in the USA. Most of the commercial and residential development opportunities have been locked up by existing well-heeled players since the 1970s. It's probably possible to find some out-of-the way niches, maybe in the "urban pioneer" areas. But if I am thinking of it, I can bet you that companies like Trammel Crow and Centex are years ahead of me.


If you have fantasies of buying cheap land and putting subdivisions in, you probably have to go past the Red River to the north, or out past Jacksboro on the west, or past Tyler to the east, to find places where companies like the above didn't already buy the prime properties twenty years ago.


I'm not saying you can't make money, but i can guarantee the competition is fierce and extremely well-funded.

[escanlan]

Originally Posted by turf3

Well, you're talking about a metro area of 7 million people that's also one of the fastest growing metro areas in the USA. Most of the commercial and residential development opportunities have been locked up by existing well-heeled players since the 1970s. It's probably possible to find some out-of-the way niches, maybe in the "urban pioneer" areas. But if I am thinking of it, I can bet you that companies like Trammel Crow and Centex are years ahead of me.


If you have fantasies of buying cheap land and putting subdivisions in, you probably have to go past the Red River to the north, or out past Jacksboro on the west, or past Tyler to the east, to find places where companies like the above didn't already buy the prime properties twenty years ago.


I'm not saying you can't make money, but i can guarantee the competition is fierce and extremely well-funded.

This about sums it up! ^^^^^


Don't forget DR Horton who builds everything from their express crackerboxes to higher end offerings. If you try to move out away from the Metroplex you'll most likely be competing (losing ??) with (to) them.

[Mark Senior]

Correct, nothing really lower priced around Tyler and west especially.

[jackalope48]

In Texas you probably want to stay out of the large markets. Those tend to be dominated by land developer/builders that build on the lots they develop and do hundreds of lots at a time.

What you describe, buying individual or small numbers of lots and building spec houses really only happens in markets the size of Corpus or smaller. There I've seen ten lot plats that North Dallas cities would laugh out of the building as being too small. Lots of growing city suburbs only want large scale cohesive subdivisions. Also a pretty good market in Port Aransas, Rockport, and Aransas Pass rebuilding houses destroyed by the hurricane still.

[turf3]

The other possibility is buying small houses scraping them and building McMansions.


However, anyone with a book of floor plans and access to financing is doing this in the city already, so again the competition is fierce.


You might want to consider "urban pioneer" areas if you have an appetite for risk: if you get in at the beginning of gentrification you can make a pile, but if the area never gentrifies you can lose a pile.

[turf3]

Originally Posted by jackalope48

In Texas you probably want to stay out of the large markets. Those tend to be dominated by land developer/builders that build on the lots they develop and do hundreds of lots at a time.

What you describe, buying individual or small numbers of lots and building spec houses really only happens in markets the size of Corpus or smaller. There I've seen ten lot plats that North Dallas cities would laugh out of the building as being too small. Lots of growing city suburbs only want large scale cohesive subdivisions. Also a pretty good market in Port Aransas, Rockport, and Aransas Pass rebuilding houses destroyed by the hurricane still.

Thing with the small markets is that the growth and demand are also a lot slower.


Let's face it, ever since air conditioning became common in houses in the early-mid 1950s, every person in the USA who has wanted to invest in real estate has considered Texas cities to be a growth market, and they were right. The chance that there are any "great deal" unicorns still out there after 60+ years of developing, growing, and refining of methods, is vanishingly small.

[fredm6900]

Originally Posted by turf3

Well, you're talking about a metro area of 7 million people that's also one of the fastest growing metro areas in the USA. Most of the commercial and residential development opportunities have been locked up by existing well-heeled players since the 1970s. It's probably possible to find some out-of-the way niches, maybe in the "urban pioneer" areas. But if I am thinking of it, I can bet you that companies like Trammel Crow and Centex are years ahead of me.


If you have fantasies of buying cheap land and putting subdivisions in, you probably have to go past the Red River to the north, or out past Jacksboro on the west, or past Tyler to the east, to find places where companies like the above didn't already buy the prime properties twenty years ago.


I'm not saying you can't make money, but i can guarantee the competition is fierce and extremely well-funded.

Thank you for your comments. I wished I had moved to Texas 20 years ago instead of Florida. The last economy crisis was much more severe in Florida than in Texas which cost me a bit. I understand your point regarding big builders and developers. I've faced them all during most of my life as a builder; Lennar, Mercedes, Moronda, Hollyday, US Homes and so one. Based on my experience here in Florida, I wished I had them far way than closer. The main reason for that; their low selling prices and heavy marketing. However, I still was able to buy lots, build and sell when the market was for the sellers. The real estate market improved since then but never to when I started. That's why I want to move to a market with growing demand for housing, high income, low unemployment and people moving in. After reading your comments, I checked some of your suggested areas. Tyler seems attractive. I may not build residential again. Maybe commercial, such as market places and offices, a mix for renting out some and sell. Before engaging in residential construction, I met a guy who just did that in Florida, and I regret not have followed his path.