All Forum Posts by: Arthur Kineard

 This is definitely an option and likely will be the way I will be going. I am looking at it as a hybrid type of project. A contractor I have used in the past has offered to help me out. Basic idea is use his license, use my project manager and we will agree to a fee before the project starts. 

 Will do

 Yes, would not be ideal but manageable. I will try to get a loan with a 10-15% contingency to cover things like this. If contingency is not available I will setup a line of credit before the project starts. 

I am strongly leaning into doing the project myself. I have done the legwork to break ground on the project. Engineering, architecture, zoning and entitlement. I do believe I can hire a good superintendent and lean on my architect, engineers and a GC I have a relationship with to get this done and have a good learning experience and build some relationships. But believing something doesn't make it true. 

I am OK with a certain amount of failure. 

 Truer words have never been said. I will get a few bids. I just don't have high expectations of even getting a reasonable bid.  Panama City area is a little unreasonable on everything. I really do want to do it myself. I think I will really enjoy it between the aggravations. 

 Seems like I am seeing a theme. 

I am liking the thoughts everyone is offering. I will definitely be running the numbers both ways.

This will not be my last project in the area. I have no desire to build for anyone else but I do envision doing a few projects per year for myself. This may not be the best project to start building relationships. That said you have to start somewhere. I am going to have to balance speed, cost and potential revenue. Learning curves are very expensive though. 

I have done 9 commercial build outs for myself. Built a very small auto shop from the ground up for a car lot I own. I actually had a small cabinet shop going for myself. My stores all have custom cabinets and fixtures built on biases. Could not find anyone local that would do it. Got a quote from out of town for 12k just for the register stand. And that was 2019. Material evolved cost less than 600 and it took two day to build. Lost that shop after hurricane Michael in 2018. Panama City has been a roller coaster since then. 

I should really consider opening a cabinet shop. Just not the same kind of money that comes out of commercial real estate.

I lease 7 retail locations and all me leases have annual raises on my rent. Generally 3%. I generally ask for and get 5 year leases and one or two 5 year options to renew at same terms. 

 Probably the wisest thing to do. I will definitely send it out for bid first. In my area it could be very expensive. Not a lot of competition. But with the way the market is going maybe they will not be out 12 months and need some money. 

1. done

3. done

Engineering is almost done they want more test. I.E. Money

Soon it will be time to order the building.

First I have to find money and at least a superintendent hired. 

I want everything planed down to a T before I walk into the bank. 

I think I want to be my own contractor for a pretty large commercial project. Am I crazy for doing this? I could just hire a contractor to do it but my experience here with contractors has been they are SLOW. In Panama City contractors are charging 10-20% of the construction cost and obviously marking up prices on materials when possible. I am guessing the project will cost and yes this is a guess at this point, $4 million. That means the contractor will make $400,000 to $800,000 on this project. This gets my brain going into lateral integration mode hardcore. I am thinking this is not going to be the last project I am going to do in this area. I plan to build an apartment complex on other property I own in the area. 

The GC contractor that is redoing my house has offered to allow me to use his license. So either use his license for a fee and hire a superintendent to oversee the project OR open my own GC company hire a RMO or RME with a Florida GC license internerally. I am leaning towards a hybrid of the two for insurance if someone flakes out.  This is construction afterall. 

Project will be 96000 Sq/Ft of warehouse space.  Six building 80'X200'. Each building is divisible into 4000 sq/ft, possibly 2000 sq/ft. 

I own the property free and clear and have entitled it for this project. It is about 8 acres undeveloped, so trees and fields. 

It is located on main hwy with all utilities accessible including sewage, slightly outside of Panama City FL. 15 min to east side of town, same for what we call downtown and same for what we call the west end of the beach. 10 minutes from the airport.  This is one of the areas Panama City is growing into. 

We have a serious shortage of small warehouse space like this. I believe at a minimum we can rent it out at $6 per sq/ft per year but we will shoot for $12. 

I think I can use the land as the down payment but regardless I can come up the difference if necessary. 

I own a business that affords me a lot of free time and my schedule is very flexible. 

My experience in construction is limited but I have some and fundamentals are there.

Please poke holes in my plan.