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All Forum Posts by: Aater Suleman

Aater Suleman has started 4 posts and replied 13 times.

Im looking at building an off grid tiny home 

@Kyle Dhillon did you ever execute on this? I just saw the post and curious about your experience. 

@Jamie Hora any chance I can connect with you and get some advice. I will need civil help for sure. 

Hi @Henry Clark, sorry a little off topic, but when you say “can’t build around electric high lines,” are you referring to the  easements or are there other reasons you can’t build around them? 

Sorry for multiple posts today but I am sitting at some major decisions this week. I am under contract to buy a 5-acre land in Georgetown, Tx. The land is located about 2 miles from a major freeway but on a county road. It has electric and water available. Sewer is not there. It has no zoning and only  light deed restrictions that restrict RV parks. Mobile homes, and using land as landfill. 

I believe that building warehouse/Flex space and look for one or a few long leases. The nearest flex space is about 2 miles away and a lot of large industrial is coming here, 50,000 sq ft type. So, I feel small spaces around 1k-2k sq ft may be interesting. There are a some storage/RV Parks nearby. I am open to other business ideas too. 

But, here is the real issue. I don't want to be the developer. I already have a lot on my plate. Are there any legal/JV structures where I can find someone who can research the best use, get it built, and operate or rent out this type of space for me for a share? Any example from a similar deal you may have done or seen will be amazing. Thank you.

I am interested in a given area (Georgetown, Tx) due to the development happening there. I was looking for some unrestricted land that I can use for some local commercial like a container-based storage or truck parking.  I found this one property. The seller had advertised that property has no restrictions. I put an offer at full asking price (without an agent) and the property went under contract.

Title company has now found that there are restrictions. They read:


1. No Commercial RV Park Resort or Trailer home Park permitted on this property for any reason.
2. No Mobile or Manufactured homes permitted on this property.
3. At no time and for no reason shall any dumping of trash, accumulation of refuse, or
storage of toxic or otherwise hazardous materials be permitted on the Property. This covenant expressly prohibits pollution of any kind on or to the Property and prohibits
any person from allowing such activity to occur.

I still like the location of the land as a buy and hold, but feel it’s fair for me to ask  for a discount as it limits what I can do with it and limits my perspective buyers too. 

Any opinions of what’s a fair discount to ask? 10%, 15%?

More info: While the property is hot and had multiple competitive offers, I won because I offered a no contingency deal. Most other offers they got also asked for seller financing and suggested RV park as the common use (it’s a common product there). 

Hi @Roy Bhavi and @Ronald Rohde, I have a 3.2 acre parcel in the heart of Cedar Park, Texas (one of the most booming areas in the country today). Zip is 78641. 


It was an estate home where we lived. The lot is not zoned today and we have a well and septic. I have been doing market research and there is over 150-200 retail shops and about 150 new homes coming within a 0.5 mile radius. But there seems to be no warehouses being built in a 2-3 mile radius. I’m looking for best use of property. A local broker told me that warehouse industrial is in very high demand as this thread has also confirmed. 

The property has two existing 2000 sq ft shells (one was built to be a huge garage and another a detached patio with high metal roof and think concrete). I think they can be converted easily (I have not talked to anyone). 

I’m considering turning it into some sort of flex space for three reasons:

1. there’s demand nationally and I suspect due to all the new retail and offices it may be interesting 
2. This use case can be great as it may not require me to annex the property to city to get utilities right away. I assume I can build first and grand father it later when I really need water and sewer utilities. This will save 1-1.5 year of permitting time with the city. 
3. The two exiting 2k sq ft shells will give me a head start to start leasing very soon and get some cash flow. And also give me some value for my sunk costs in them. 

Does these reasons make sense? I am not sure if I will need to account for any excessive use of  water for sprinklers. 


Economics: Based on data I have read, $9 psf seems to be the going rate. I have done some research and a 5000 sq ft stub metal building seems to be around $80,000. I am resesrxhing and finding $50,000 for concrete and then adding electric, HVAC, etc will cost another $50,000. So totally near $40/sq ft since I have minimal soft costs. Based on Roy’s numbers, it seems like construction will be $60/sq ft. Is this making any sense on paper? 

I would love to get some guidance before I spend money going down this path. Happy to share a map of the land if that helps and happy to pay for someone’s time for a consult if that is more appropriate. I just want to get my basics down before I approach a builder or a broker to not waste their time. 

Originally posted by @Costin I.:

@Aater Suleman here are my 2¢:

1. If the foundation work was done properly and you get a warranty (make sure it's not only for original owner) from a reputable company (still active, not defunct), you probably are good.

2. I would not trust an email from the seller - get your own structural engineer there to check on things. 

Just be aware, ​there is more to foundation repairs than just the foundation. Here is what I collected as "warnings" or lessons (from various sources and some experienced myself) about foundation problems and/or repairs:

1. If you have brick on the exterior, you might have to do tuckpointing. $$$

2. If you have tiles inside, the tiles will crack. And if they have to drill holes for interior piers, you pretty much will have to replace the entire flooring. $$$$

3. You'll have drywall cracks, so you should factor in drywall repairs and repainting. $$$

4. If the doors were adjusted to a crooked foundation, you might need to readjust or even buy new doors. $$$

5. A hydrostatic plumbing test is recommended to be performed by a licensed plumber post Foundation work. Plumbing leaks may void warranty. Old houses have cast iron pipers that will disintegrate (because of age and/or foundation shift). You'll have to replace all plumbing at that point. $$$$

6. Depending on how bad is the foundation state (how many inches you have to correct), is very possible the sewer line will disconnect/break in the horizontal portions. Repairing that requires tunneling, a repair that could be very expensive. $$$$

7. If the driveway- garage differential is big (for example, the driveway slab is sunken and you need to raise the house, you'll end up with an even bigger gap after repair) you might need to replace the driveway. $$$$

8. If you are dealing with an addition built on 12" beams (or if the original foundation is old and not built to current standards), the repair company might not be able to push the piers down to refusal depth or psi due to the beam not taking the load, thus leveling it, but not guaranteeing it will not continue to move in the future, thus not providing warranty.

9. The owner may be required to provide a structural engineers evaluation prior to warranty work.

10. Read the fine print in the foundation repair contract: Damages to the property, interior and exterior as a result of the foundation movement are not covered, during and after works completion. This usually includes but is not limited to PLUMBING, flooring, landscape, utility lines and masonry. The foundation repair does not cover any repairs that may be needed to the home during and after works completion. And you'll have new cracks in unexpected places, old cracks that will not close, but instead enlarge. My suggestion is to add at least 25% to the cost of the foundation repair as mitigation to the problems that will come from the foundation repair.

11. The foundation repair company salespeople (and even owners, in some case) of structure companies are not engineers and though they may be right most of the time, there will be gaps in their assumptions. Unless it's a small job with an obvious solution, get an engineer ($250+) to look at it and sketch up a scope of work for a contractor to do.

12. Many foundation problems have water as a root cause - be that infiltration in a crawl space, drainage around the site, cracked sewer line or water line. Before solving the foundation you might want to get to the root cause of the foundation issue and resolve it, otherwise you might repair the foundation for nothing.

13. If you repair the foundation on only select places, don't be surprised if the other sides will suddenly start "working". If the house is stabilized on one side, you might get cracks in the other side soon after. In other words, if you do a foundation repair, it's better to get the whole house stabilized and the warranty for the whole house.

If anyone has more experience with any of these, please correct me if mistaken.

 @Costin Thanks for an excellent response. The seller has shared with me a warranty of a company that is still alive, and the warranty is transferable. They also agreed to get an engineering report for me and see if any fixes are needed. 

Any help will be highly appreciated. 

Looking at an interesting property where inspection shows that foundation work was done. The seller has had an inspector come out and showed me an email that that states that all “elevations were well within tolerance. Its advised to monitor any future damage and exterior water drainage. If any issues are noticed please contact us for evaluation.” 

Would you buy a property like this to give as a rental? Shall I expect a discount from market value? 

Originally posted by @Mason Moreland:

Aater, glad you brought this up and hopefully I can provide some useful information on wetlands issues as they pertain to development and real estate investment. First off, let me preface this with the facts that the follow is:

-My opinion based off of desktop observation and experience

- This is not based on a field survey which would be required to really give a definitive answer on if this feature is "potentially jurisdictional"

- I am giving this opinion in my capacity as a RE Investor, not in a professional capacity with my day job, although we can help folks with that!

Some background on me: ~8 years delineating, permitting disturbance and development in, and writing mitigation plans for wetlands in TX and the Gulf Coast region for several environmental firms, an energy company, blah blah blah. I've done it for a while, but there are some much more experienced folks out there for sure (30+ years!).

First, lets talk "wetlands". "Wetlands" are regulated on two levels: federal and state (typically, sometimes also on city/county levels in some areas). In Texas, all wetland regulation is delegated to the federal government. The EPA is responsible for this, but delegates those powers to the Army Corps of Engineers ("USACE"). USACE, through regional offices, makes all the permitting and regulatory decisions regarding wetlands on the federal level.

Since Texas only regulates "wetlands" at the federal level, we can ignore that for now.

Why is "wetlands" in quotations? Well, not all wetlands are under the jurisdiction of USACE. They have to have all of a set if certain criteria to: A) Actually be classified as a "wetland" and; B) also be considered "jurisdictional" waterbodies under the Clean Water Act and fall under USACE purview.

What constitutes a wetland to the feds? It must have all three wetland criteria: Wetland Soils, Wetland Vegetation, and Wetland Hydrology. You could do a week-long course on any one of those three topics, so I'll leave it at that. Hire a professional delineator!

How can you tell if you might have an issue on your hands before you go out and get a field wetland delineation that in this case could be $1,200-$5,000? Here is what I looked at in my desktop review.

First, look at the National Wetland Inventory Mapper ("NWI" Mapper). This shows a good aerial view of the US and classifies things as wetlands or waterbodies based on remote sensing data. The NWI classification means absolutely nothing from a regulatory perspective and is notoriously spotty in accuracy, but it's a good first hint that there might be something there to look at if it shows a feature. See the screen grab below, it says Aater's place is a riverine ecosystem. Ha! https://fwsprimary.wim.usgs.go...

Second, aerial imagery. Google earth is your friend. Especially that handy historical imagery tool. Go through all the historical imagery to see if there has been any standing water there. If there has been one of more years, good chance you might have the three criteria (soils, veg, hydrology) there to at least call it a wetland.

Third, topographic maps. If you know how to read topos, look one up and see if the property generally drains to your area of concern. Is it a marked/named stream/river/lake with a "blue line"? Does it appear to drain and stop on the property, or continue to drain away and connect, perhaps to another stream, river, or lake? This is important later.

Based on these, I'd guess Aater has more of an "erosional feature" than a water body or wetland on his hands. At worst, it's a non-adjacent wetland or an "ephemeral" stream, one which only has surface flow during or immediately after precipitation events.

So currently, there is a rule recently implemented under the Trump admin that clarified the definition of what kind of water bodies might be jurisdictional and provided many exemptions for agricultural use properties. It is currently in effect and, due to rule changes procedures, will take significant time for the Biden administration to undoubtedly undo. 

Under the current rules, "ephemeral" streams and non-adjacent wetlands are not considered jurisdictional. Because of that, I would guess that just about anything you did to develop on this feature would be legal until they change the rule back. Once that happens, it may fall into the ephemeral category and it would benefit you to have it looked at if you are going to alter or develop it. 

However, under the prior rules even if it is an ephemeral stream, it must also have some sort of downstream connection to another jurisdictional water body to be considered jurisdictional itself. It appears it may from aerial and topo maps. My gut still says this is likely an erosional feature lacking some of the criteria to qualify as an ephemeral stream though (can't say for sure without a field survey).

Even if it is a wetland, you can still develop it from a regulatory perspective. It would likely easily fall under Nationwide Permit 29 ("NWP" 29). These are a set of "permits" that are basically pre-established frameworks that allow certain activities. NWP 29 still requires a field delineation and a Pre-Construction Notification or "PCN" be submitted and approved by the regional USACE office and it must be under 1/2 acre. 

List of NWPs: https://usace.contentdm.oclc.o...

NWP 29: https://usace.contentdm.oclc.o...

From a non-professional standpoint, if you have any doubts at this point you should definitely seek out a professional. Wetland delineations for very large properties can get expensive, but for something like this it wouldn't be much more than other fees such as appraisal. Permitting services a little more.

In this case, I'd be much more concerned about the engineering and water/drainage control issues with developing here. If you build on it, you could essentially create a dam which may pond water on the northwest side, so consult an engineer before you develop to come up with a solution to divert flow around or underneath.

Whew, that's hard to condense.... Questions, anyone?

Thanks a lot Mason. Very well explained and it does make sense to me, and I have a learned a lot as well. I agree with the engineering aspect and will be seeking an engineer to help with further analysis before I build. However, for my financial analysis, I am thinking marking the "blue" area as unusable and discount it out of the market price to gauge my deal. I think it is conservative but it gives me a good view if I want to get in to this.