All Forum Posts by: Andrew David

Hi All! 

I am a commercial general contractor in the Southern New Jersey Region. We primarily construct commercial, medical, and industrial buildings with a strong history in pre-engineered metal buildings. My goal is to build a two-phase self-storage project for my investment portfolio. My focus at the moment is Phase 1. Phase 1 is a 45,280 SF/235 unit project. 

I have done some preliminary site planning and cost analysis on constructing the facility on a property that is owned by a client I work for. The client is a real estate investor by profession and we have a strong relationship.  

The property Owner had prior approvals for a retail project that never took off back in 2008 and the site (7 ACRES) and has been vacant since. In order to minimize the hard costs up-front I would like to propose to the Owner a land lease agreement with an option to buy in the future. To encourage a partnership I am considering offering him an equity position in the self-storage business. Possibly the monthly land lease could be a percentage lease in that he receives a portion of the total rental income based on occupancy. The land value is approximately $600,000. He has had it listed for years with no real takers. 

Acting as the developer, I would pay for and secure the approvals and complete the architecture & engineering.  My construction firm would build the project. I have two equity investors lined up to capitalize 35% of the total construction costs. 

I am looking for some opinions on how to structure the lease (deal) OR should I secure the capital to buy now and take him out of the equation? To me, it seems if he would be OK with coming along as a partner and positioning his land as equity in the deal it limits my upfront costs. 

I am open to hearing your thoughts! I thank you for your consideration and opinions.

Having a difficult time determining what the best play is here.

Currently own a home, no motgage, just a small private loan. The loan is 536 per month. Property taxes are $333 per month. Essentially, $869 per month in expenses. The house is a 3BD 2BA. The house would rent in my market for about $1,400-$1,500 per month.

If I sell, I think I can get 30-50K profit, I've only owned the home for three years. As a primary residence, the profits would be tax exempt.

We found a property we would like to move to. The purchase price is $240,000. I have the money for the down payment and renovations without the sale of the current home.

Should I sell or rent the current property? I currently owne a duplex that cash flows roughly $600 per month, so I'm thinking about adding it to the portfiloio?

Anyone have experience with this model? Tips/advice wanted!

Thanks!

Having a difficult time determining what the best play is here.  

Currently own a home, no motgage, just a small private loan. The loan is 536 per month. Property taxes are $333 per month. Essentially, $869 per month in expenses. The house is a 3BD 2BA. The house would rent in my market for about $1,400-$1,500 per month. 

If I sell, I think I can get 30-50K profit, I've only owned the home for three years. As a primary residence, the profits would be tax exempt. 

We found a property we would like to move to. The purchase price is $240,000. I have the money for the down payment and renovations without the sale of the current home.  

Should I sell or rent the current property?  I currently owne a duplex that cash flows roughly $600 per month, so I'm thinking about adding it to the portfiloio?

Anyone have experience with this model? Tips/advice wanted!

Thanks!

wow! Thanks for all the responses @Anthony Chara @Hubert Washington @Nancy Curran great, sound advice. I appreciate the help!

My partner and I are looking to invest in multi-family and we are having difficulty finding properties to invest in! Currently we are looking for 5-50 units deals. We are located in southern New Jersey close to Philadelphia and Atlantic City NJ. We are interested in PA, DE and NJ markets. 

We have partnered up with a local commercial broker but that hasn't provided much fruit yet. We are also on sites like realtor.com/mls etc. but they don't seem to have the size of properties we are seeking. 

I'm not sure if properties of this type are thin, or we are not sourcing them properly. 

Any advice is greatly appreciated! Thanks!

Andrew

My partner and I are looking for a wholesale connection in the Southern New Jersey area. We appreciate any information sent our way! Thank you!

Regards,

Andrew 

My partner and I are looking for a wholesale connection in the Southern New Jersey area. We appreciate any information sent our way! Thank you!

Regards,

Andrew 

My partner and I are looking for a wholesale connection in the Southern New Jersey area.  We appreciate any information sent our way! Thank you!

Regards, 

Andrew 

Hi Mark, 

Thank you kindly.  We are interested in properties spanning east to west from cape may county to burlington county. We are located in Vineland NJ and would like keep a radius of 1.5 hour travel time. 

My partner and I are looking to make some connections with a few wholesalers that market properties in the Southern New Jersey Area. We are looking to buy for rental & rehab.

Any help and or suggestions would be appreciated.

Thanks!

Andrew