All Forum Posts by: William Haltom

Hey Eugen,

 If you're not concerned about the aesthetics of the yard, there may be one of the concerns you may want to consider. The  moles can create so much damage to the yard that they can create a problem for tenets that may be walking through the yard or visitors that may sink in a hole and twist or break an ankle. That of course opens you up to  some potential liability, because even a frivolous lawsuit cost money to fight.

This YouTube video may help.

https://youtu.be/GfD8nsm5t0g

Good Luck

Bill

This is an amazing 2 Acre Commercial Property in Show Low, Arizona. Show Low is in the Northern Eastern part of Arizona and it is where you go to get out of the heat!

We are building a Rustic Cabin Resort in the White Mountains of Arizona, and there are 17 - 2 story cabins having 2 rental units per cabin, one on each floor. These cabins will overlook the City owned meadows in the middle of town, and these cabins will be nightly rentals like a Hotel, using the both the traditional drive by commercial frontage (652') and popular website like AirBnB and Bookings.com.

 
All Architectural plans and Civil Engineering have been completed and the building permit is already pulled.

We are looking for a hard money loan to complete this project. We are looking for somebody that can move quickly. 

WE ARE NOT LOOKING FOR A BROKER, WE ARE SEASONED ENOUGH TO FIND TRADITIONAL LENDERS ON OUR OWN, WE ARE LOOKING FOR A PRIVATE LENDER.

Amount: 500K - 1.6M 

Term: 24 - 36 month mini prem

Rate: 12% 

You can see in the pictures that we are framing the first of the 17 cabins.

Creative Development L.L.C.
Bill Haltom

480.616.4228 Cell

Thanks for looking!

Thanks for looking!
Bill Haltom
Creative Development L.L.C.

Hey James,

Your PM should be the one gathering all the bids for you! That's what his flat fee is for, to get you 3 bids on each and then manage the project. He should be willing to be really fair on his flat fee in mt opinion because when this job is done it will be a nicer property for him to manage and easier to keep rented.

Your PM should go in one time and write up a scope of work for each unit. The sub's should just be willing to go by his office and pick up a copy of the scope-of-work.

But, it's even easier than that. I think you said that they where basically all the same on the inside well, if that true all your PM would need to do is let them in to see a vacant one. If your completely full then all they need is an 8.5 x x11 floor plan. I've been building for 30 + years and most all sub's bid by the S.F. or yard or some formula that works for them, so even if he does see the unit a vaulted ceiling to a painter is not a big deal, so a small floor plan and a fair description of the unit from your PM is all and sub should really need. 

Bill

Hey Brian,

I do like LoopNet, but only to find the land to build my own projects on. 

I have found that nobody care as much as I do about maximizing the property for parking and retain space or what ever I may be building. So I design it myself first, and only after I feel that I have truly maximized the project do I then send it out to and Architect & Civil Engineer for working plans.

The reason I am telling you this is because I have never bought a commercial property, I have always built them, and because I don't have a GC to pay, and with my design that I hope has some creative thinking when it's maximized, you should do very well!!

You don't need to be a GC to build a commercial property, and as you build this exciting new project, you build in some fantastic equity for you or you and your partners. 

If you can put together a great group of Sub-Contractors that's all you need, they will each let you know if they see something wrong on concerning on your job.

I don't know if that helps at all? But to me the best way to find a great successful commercial project is to build one. Find a great vacant property, find highest & best use, and build it!

Thanks for letting me share my two cents.

Bill

Hey Chris,

Since you have a source to get your flooring cheaper, and you can do the labor, I would definitely step-up and upgrade the flooring because your 5k floor, is somebody else's 8k floor. 

The upgraded flooring will also bring you a faster sale, and you will feel better and the value you are passing on to your buyer!

Good Luck!

Bill

Hey Sean,

https://www.apartments.com/

https://www.apartmentguide.com/

and free local magazines at the grocery stores like Apartment Finder.

Good Luck!

Bill

Hey James,

You have already outlined some good options, but my two cents would be to let your PM get you 3 bids on each phase or trade. 

If he is talking about being one of those Sub's and doing one or more part in-house with his crew, it would have to be after you have seen 3 outside bids first. You could then pick the one that you like the best and if he wants to match the bid, then award him the job.

I would also suggest that you agree up front before he even start chasing bids for the project, that you agree on a FLAT FEE to be paid to your PM for managing the job. Do not even consider a cost + or % or anything other than a flat fee. 

I would break the job down into 4 phases i.e. 

1. Painting 

2. Cabinets Installed 

3. Counters & Sinks 

4. Flooring

Then, agree to pay 25% to the PM after the completion of each phase.  Now he's got the motivation to get the next phase done, and you know you haven't paid out to much to soon. Require your PM to text you lots of picture and video as the project moves along, and then  FaceTime with him when he is on at job when he is asking for his next draw.

If you PM is on a flat fee, and your sub-contractors are all summit bids that include materials & labor there will be far fewer surprises, and you can manage the project just find from out of state. 

Bringing in a GC will just add to the cost and you don't need a GC with good sub-contractor they will protect your investment. 

Good Luck!

Bill

This is a very short YouTube video of where Show Low, Arizona is located.

https://youtu.be/S1Zj8McWrqY

Hey Galvin,

I was a little unsure of your question, but see if this helps!

http://www.luzernecounty.org/county/row_offices/re...

http://www.luzernecounty.org/county/departments_ag...

One thing we know for sure, who ever is paying the taxes is the owner. Your county does not have a great website with all the online tools they should have, so you may need to do it OLD school and call them or go down there!

Good Luck!

Bill

Hey Adonte,

Base on you question and your description of your situation, I would say move slowly! Let me explain.

Q: I need 20% to put down and the seller is willing to do owner financing for 5yrs at 7.5%. The property is $250.000.

A: If you need to borrow the down payment and the seller carries back the balance, you have no skin in the game. It will be very hard to find an investor that wants the loan. 100% LTV

Q: Do I start a LLC first

A: Yes, If you plan to be in business you will need to create an L.L.C. (less than $100).

Q: Which is better hard money or private money for the cash to put down the 20%. If neither what is the best creative way to get in to the deal

A: Most of the Hard Money is private money. Any loan and the interest rate charged is based on RISK, the lower the risk the easier it is to get the loan and the rate is much lower as well. High risk, high rates, hard loan to get! 

 a: The best way for you to get this deal done based on the limited information given would be for you to find a partner that already has the down payment you need. You bring him/her the deal, and they put up the down.

Q: Do I use a small bank to refinance the property to a 30yr fixed

A: A new loan is what you will need to be prepared for in year 4. 

Q: Do I need a realtor

A: No, in fact if you get a Realtor involved someone will need to pay that commission and the Seller will need a bigger down payment to pay the Realtor. I would put my deal together with the Seller and then go to a local Title and ask them to help walk you through the process.

Comment: I think that this property would be great for my first buy and hold. Also within the next 8 months I will be moving to the city that this property is located

Response: It is hard to be an absentee owner right out of the gate. If you have a bad tenant that beats the place up because your not in town, it can be very costly to do repair long distance.

Good Luck!