All Forum Posts by: Anthony Koinis

I have a 5.25 acre residential lot 4 miles south of Johnson City. 7 minutes to great coffee, food, and the beginning of the Texas Wine Trail, 55 minutes into Austin. Extremely high growth area. Lots this small are very rare. Top of hill elevation (1300+) with long range views (35+ miles) looking across the Pedernales River Valley to Round Mountain.1497 Stanton Road, Johnson City $299k

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Hi Everyone, 

I am in the process of developing 85 acres into 14 ranchette lots (5-7 acres each) in Hill Country outside Austin, TX (Johnson City). We would like to select some preferred custom home builders and offer to send lot buyers in their direction. 

My question is this: What would be a reasonable referral fee/commission for the builder to pay us to be a preferred/referred builder for the development?

We were thinking around 5-7% of their builder fee....   

(Math as follows:  Lot cost ~$340k , Avg. Custom Home Build ~$1M, Builder fee ~$200k,  Our developer's preferred builder fee (paid by the builder out of their $200k x 6% = $12k)

I am subdividing a ranch for 5-6 acre lots in Johnson City Texas, about 55 minutes from Austin and could use some help. Has anyone taken contracts on a preliminary plat (price adjustment would be based on set price per acre)? 

I'm also looking for someone who can do a Phase 1 report quickly.

Thanks for the insight @Trey Farmer . I've done some measuring of the Mueller pockets. The one you mentioned is a great example of what we are going for and extremely similar in the distances and ratios (ours will have smaller units, which would typically be allocated no or a tiny yard anyhow). Our site is somewhat walkable, though certainly nowhere close to the walkability score achieved within Mueller. Nevertheless, our apples to apples comparison would need to be a pocket, or something very traditional with front spaces that go unused and very small back yards (15 feet depth).

Having lived in one, are there any details that you would add, copy or avoid (sight lines to neighbors, small fences in front of porches, common bbq or fire pit areas)?
 

Good link @Neil Narayan . Thanks for adding. 

Any update on this passing? I could see it slowing down after the ADU rules getting passed. I do hope that they don't stick with those parking changes as I completely disagree with the statement "no one will build a duplex without parking". It's very evident from other cities that people absolutely will build units with out (proper) parking if allowed to do so and the burden then falls to the public.

Duplexes tend to do very well in Austin and I've enjoyed working with them in the past (I ran a fund that acquired and remodeled duplexes and four-plexes across the city).

Thanks for the insight @Elizabeth Hernandez ! I typically agree, but was wondering if the assessment changes when you're comparing a dense development where no one is going to have a typical front yard anyhow (think townhome cul-de-sac with a more narrow street). We would love to give everyone a typical full front yard and backyard, but the density required isn't going to make that possible.

Here's an example of a successful project in an area that hadn't typically seen that type of work.

https://blackapplecommunity.com/the-design/

Hi @Andrew Taylor ,

That timeline on an TCEQ well sounds right on target. The added cost and time is a little ridiculous given that all of those who are staying in the park could drop a simple residential well on their own property and not be subject to those restrictions and controls... 

On the "tiny home" issue, do you know if they were attempting to rent them out on a monthly+ basis or were they 100% doing nightly business?? (I'm assuming that they were trying to do Monthly rentals given the number they put on the property...)

Hi Everyone,

I am building 7 to 8 (14-16 units) duplexes in southwest Austin Texas. The process is just now getting started and any thoughts and advice is appreciated. The units will be placed on 2 acres with access to water and sewer. Our hopes are to sell the units individually as the area has very little in the way of starter home priced properties, but is extremely popular because of the excellent school district and high quality community.

We are considering flipping the standard "one road" site plan and instead running a one-way street around the back of the units and facing them all into a common green space (pocket neighborhood style). This hasn't been done very much out, so we are still deciding what will sell. Our goal is to sell to young families and retirees. Units would range from 1,350 to 1,650 sqft (3/2, mini-master down, 2 car parking).

Has anyone had experience selling or renting units that are in a pocket neighborhood setting vs. a traditional site plan? What about phasing? Is it better to phase the units or build all at once to help with our build cost?  Has anyone built duplexes that feel more like single family town homes; if so, what helped them feel less like MF?

Thanks for all your help!

Hi Victor, Have you bid out construction costs yet? I'm looking into new park development outside of Austin TX and am interested in hearing how your progress is going (I'm originally from the Spring/Tomball area). Good luck on your work!

Thanks,

Tony Koinis

Good info @Account Closed .  So I were to rephrase what you've said it might be "I'm not a fan of my sales job and I view real estate as an entrepreneurial way to be independent and exit the traditional job market. My real estate experience is exclusive to single family remodeling."

With that background I would caution you against becoming an analyst. An RE analyst is a traditional job. It may have different day to day tasks than your sales role, but it doesn't offer any of the perks that it sounds like you are looking for. However, you may be able to get an analyst role and gain experience in commercial real estate and exit into something more independent in 4-7 years, but that doesn't sound like the timeline you're going for. (Analysts spend most of the day in Argus and Excel underwriting deals that others send to them so that those with decision making power can look at hard(ish) numbers more quickly). 

It sounds to me like you need to find an operator who is already doing several flips or builds each year and provide them with some sales/operations support, slowly investing more time and money into the business until you are full time.