All Forum Posts by: A Rao

I just rezoned 142 SFR 45 minutes outside of Atlanta and I am trying to understand how to sell to builders. I am willing to wait through LDP and most builders will want a tranched takedown.

What is the normal percentage of hard money down for a phased takedown? 

It sounds like I will need some site work for the whole site at the beginning so that the site is not impaired if they walk at some point in the project. 

I am guessing the whole site will need to be cut/fill balanced, sewer and water mains run, all the streets rough graded, erosion control, stormwater management all in the first phase?

What else am I missing or should be asking for from the builders if they want the land in phases? 

How do I make sure I am not at risk if they mess up stormwater management etc on the first phase when I still own the other 2 phases where there is an erosion or stormwater problem?

Thanks!

What's the total number of units?

Usually it doesn't make economic sense to "develop" 1 unit at a time when the whole site will need full engineering, stormwater management, cut/fill balance, phase 1, wetlands delineation, etc etc etc. Phases are normal for a subdivision, but not 1 unit at a time.

I have an offer to put in my land (278 zoned SFR lots) as an equity stake in a BTR rent community with an established builder who also has a BTR division. The idea is to rent and stablize for a year and then sell.

Do the numbers on this deal look reasonable? Exurban Atlanta.
Looks like $1.7 million investment (land price + 15% equity in the horizontal development cost) yield $16 million in 3 years? (Horizontal cost LTV 85%, vertical LTV 100%). Land equity mine, the other equity from the builder.

Thanks!

Does anyone have a recommendation for an accountant in ATL? My current accountant has messed up with 1031's and categorzing real estate expenses.

Thanks in advance!

I've looked at this before. I think that while zoning is not easy, you still need to have the site ready for parking. Some municipalities require paving, some will allow compacted gravel. Get some quotes on paving 2 full acres and then see if the rents/lease justify the capital outlay.

I am struggling to find a lawyer in Georgia with experience structuring an LLC for a SDIRA.

Does anyone have reviews or recommendations? 

Thanks!

@Greg Dickerson

That's great information! Thank you!

What are you finding the lot development cost to be right now? To go from SFR raw lot to SFR developed lot read to build? Assuming good topo, no rock etc, starter home?

Can't you just find a development you like and use their documents as a template?