All Forum Posts by: Amit Barman

@Scott Choppin

Thanks for your reply.

to answer your question, We did not discuss with land developer yet, I am trying to explore possibilities to present to him to negotiate. The final SDP will be approved on 1st quarter of 2018, so they are flexible in terms of going to  a deal.

We are planning to build the homes and sale, with some short of arrangement with the land developer, either buy upfront or have a deal to pay as we sell each block. That is where I need some feedback on available deal structure.

we are looking into Finance plus Equity. House will be built at home buyer's financing, we already roped in a lender who would pre-approve the project and make the financing available. So we basically need money for the land and infrastructure development. Infrastructure development can be done in phases and cash flow from phase-1 can be rolled into phase-2, so do not really need money for the entire infrastructure development but for phase- and two may be and common infrastructure such as storm water.

Yes we ran the proforma. land cost is around 33k each lot, infrastructure/lot around 43K(considering all common facilities), development impact fee+ cost of building+holding cost is around 180K, target selling price is around 425K

Thanks

So we are looking into development a 22 Acres land to build 46 Villas. Land developer already sub divided the land. For a land of this size, what kind of deal you guys go with the Land developer? It would be too much holding cost if we pay the land price up front. Curious to know the possible options that we can present to the land developer.

Thanks for your suggestions!

gym is a great Idea.

Thanks

Hello Group!

You  guys have been so helpful so far. I really appreciate all the feedback I got over the years which helped me to growin real estate investment.

I have been doing buy and hold type deals for single family/townhomes so far, but looking into a mixed use deal and wanted to make sure my analysis is correct, and I would greatly appreciate your feedback on this.

So the property is four level, also has a one level extension. the four level can be converted into one level of retail and three level of apartments. Did a quick design and realized I can have three two bed apartment, three one bed apartment and two studios. This is aimed for student housing and rent for studio goes for $750, one bed for $1000 and two bed for $1250, Retail rent I might get around $3000, there is one story extension that can be converted into a community hall. So all in all I am looking into gross cash flow of around $11250 at 100% occupancy. the property asking price is $590K and need around $300k to flip. Bank would finance 70%. Monthly P & I would be around $3550. so if I consider 80% occupancy, and $1100 for maintenance escrow(10%), my cash flow should be $4350 + whatever I can make out of the renting the community hall. Does it sound like a good deal, am I missing anything?

Thanks again for your help!

Mike, I just closed two properties with one bank who needed three months seasoning, and talking to one that does not need any seasoning. Thanks

Not sure if this is the right forum to post this, I came up with this plan, which, I am sure, many of you have used already, so can not claim it as creative, but like to get your opinion on pros and cons of this concept.

I was looking at hardmoney loans, so if I borrow 100K at 10%, I pay $1000 a month, $6000 for 6 months, so If I can buy, and fix a property say in 150K neighborhood for 100k, put it out for rent, refinance at it's comp of 150K, so, at 75% of 150k, for $112,500,(after closing may be around 105K), pay off the hard money, so pretty much at a price of the closing cost, I can get an investment property.

Please let me know if you see anything wrong in this process. Or if you have a better suggestion.

Thanks

So I have this crazy tenant. I have this property which has electric baseboard heating system. Tenant complained about lack of heat in the house, while questioning found out that she does not want to turn on the heating system on for long as she thinks that will increase the electric bill. I tried to convince her that this system works like central heating system only, if she doesn't keep it on, it will not give instant heat, but I failed to convince her. 

.I even gave her option to relocate to another finished house of mine or option to break the lease, with full deposit refund from me,  but she still went to court for escrow and stopped paying rent. On top of that she went to separate court for claim of reimbursement for her inconvenience. I am just tired of this tenant, she never talks to me directly, but straightaway goes to court (third time in 8 months). What option do I have to evict this person, or deal with her in the court?

Thanks

@Zachary C.

The problem is, they are two couples who went ahead and registered the land under all four names as owners.

Now I am thinking may be, we can form a LLC where they can come with initial investment in the form of the land, without actually transferring the land itself. Any advise on that?

Thanks

Hello group,

I am an Architect-Design-builder. Trying to framework a partnership deal with a land developer where he already sub divided the land and I am coming in to build and sale single family residences.

Two possible partnership scenario I can think of:

1. If we set up an LLC for this partnership and transfer this land to the LLC, then bank can give construction loan to this LLC, but the problem with this is, there will be huge expense for the transfer of the deed just for the construction, there will be another deed while selling the house, so paying twice. Pros: I can spend money for the design and get permit, as I have part ownership of the land as a partner of the LLC, so that as soon as we get a buyer, we can start building

2. Do a builder tie up type of deal, where land owner sell the property to the ultimate buyer and they get construction loan, pros: no double deed expense, no involvement of bank or interest cost from our side, cons: if we market/design the development now, the land is still owned by the land owner, so there is a potential of money loss, in case land owner pulls out. And if we just market now and design after the sale of the land, there is a huge time lose in the permitting process from the day buyer commits.

Can anyone suggest the best possible approach please. This will be my first development deal, so please forgive me if this question sounds too naive.

Thanks

Ryan,

Thanks for responding.

for two reasons I am trying to avoid it to show in my credit. For one, I am trying to buy a bigger house and put my current residence on rent, so showing this in my personal credit will limit my ability of lending and secondly I would like to roll this money to increase my Rental portfolio, and again, with what shows in my current W2, there would be a cap on how much I will be able to finance.