The Residual Real Estate Agent Show

Stop Building ADUs In California (Unless You Live Here)


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Thinking about developing land? Before you buy property for sb 9 lot split projects, you need to understand the hidden costs like Mello Roos explained in this episode, or you risk going bankrupt.

Many new investors in real estate investing believe the myth that subdividing land is a quick 6-month flip. The reality is that the land entitlement process often takes years, not months. In this video, we break down exactly why building your own house in california or trying to execute a sb 9 lot split is much harder than the gurus tell you. We reveal the truth about the cost to develop land, including the massive infrastructure fees for schools and roads that can kill your profit margins overnight.

If you are looking for a California adu laws 2025 update, we also cover the specific "catch" with AB 1033. While the law says you can sell ADUs separately, only specific cities like San Jose are currently allowing it. We also dive into the nightmare of construction permits and why you cannot just "build what you want" even on your own land.

Here is the truth about development you need to know:
🛑 Why you must check for "Mello Roos" taxes before you ever buy property for sb 9 lot split deals.
🛑 The step-by-step reality of how to subdivide land without getting stuck in 3 years of red tape.
🛑 Understanding the AB 1033 loophole and why you probably can't use it yet.
🛑 The hidden cost to develop land that most beginners forget (utilities, school districts, and road widening).

Stop listening to people who say development is easy. Listen this "Reality Check" to protect your capital and learn the real timeline for subdividing land in California.

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The Residual Real Estate Agent ShowBy Jose Luiz Morales

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