All Forum Posts by: Ben Johnstone

hi @Steve S.. I am interested, please email details at [email protected]

Sounds good @Jeff Greenberg. I will try to make it!

Hi Everyone,

I am looking for an investment partner in Los Angeles. I am open to all types of real estate investment strategies. I own an house in the UK, which is currently being sold. My issue in getting started in LA has mainly been the price tags. With the selling of my UK house, I will have around $250,000 to start using in the US. 

The right partner would need to bring a decent amount of equity to the table too. The appropriate amount of equity would be judged on experience; I would happily work with someone with a little less cash on hand than myself but who has proven experience, and connections.

In all honesty actual experience in the US market is what I lack. I have been on the sideline for a couple of years, been to many meetings and educated myself endlessly. I've tried to get projects off the ground but struggled in such a competitive and expensive market. For this reason, I am looking for a partner who has proven experience in this sector.

I am 29 and live in West Hollywood, I am looking for someone young and hungry like myself, and who thinks big and outside the box.

Please Message me, if you are interested.

Ben

Hey guys,

My questions may be dumb but I'm a noob..

Just to confirm, by 'sponsor' you mean that @Account Closed is the one personally on the hook for the debt?

Also are personally responsible for the debt because the loan is under your personal name and not your business entity, or under you business's entity but with a personal guarantee required by the bank? Did you need to provide collateral for the the guarantee if so?

In regards to the builder, is he taking a fee + percentage of profits, or just percentage of profits?

We all take into account business entities, taxes and different types of deal structures to make sure we keep as much money in our pockets all within the confines of the laws. As real estate investors we are extremely lucky in that there are plenty of tools and tax breaks at our disposal to allow us to pay less taxes than people with 'normal' income jobs. If theres a lawful opportunity for you and the seller to structure a deal so that he still maintains his benefits, then great, everyone wins. As Mitt Romney said - you'd be stupid not to take advantage of the options available to you (on why he only paid 13 percent taxes)

can't believe I just quoted Mitt Romney,

I assumed that since the swede and water might come together, but i noticed further down the street a manhole with a 'W' on it so deduced it perhaps they were separate.. Either way as i said the house next door has water so shouldn't be a problem.

I've got info on permits, impact fees etc - school fees alone are $10,000!

Its the utilities business, grading and street improvements that have been hard to research. I think I've got as much info as I can now, before I actually speak to someone at the planning office.

thanks @Wayne Brooks

Thanks for the response @David Jacques and @Liam Goble

So i've found out that luckily there is electricity right up to the property, and luckily a sewer too - theres a man hole on the property. Regarding water, I couldn't see any specific man holes for water but the house next door has water so should be a problem. This is all good news.

My only concern is who do i speak to to figure out what I am allowed and what I have to do for the road extension? The road stops and then there steps which go past a vacant plot and then to mine and then to a house above mine, one more house then a road. Where the steps our however, is mapped out as a future road on all plot plans that i have seen. Does that mean that If i want to build on one of the vacant lot and can extend the road 50 ft where the steps currently are?

Who do i speak to fin this out. Can I just go to the city planning office and ask?

Hi Everyone,

I've been researching like crazy the process of researching potential vacant land for SFR new construction. Theres a lot on what to do once you have the land but not a lot about doing your due diligence beforehand without spending $1000's in feasibility studies, and surveys etc.

My question pertains to Utilities an roads. I know i have to work out roughly what it will cost to get utilities to my lot, but how do I find out what is available. The plot I am looking at is behind a house that is on a road and 100ft away from the road.

1)How do I find out where the nearest sewer connection is, or if even there is one. And then who do I contact to get a quote on getting it extended to my property?

2) Same question but in regard to Water

3) I know theres electricity nearby, i can see the pole! Would the electricity company pay for extending the electricity a house over to mine, or would I pay for it. Obviously i pay for it once its at my plot boundary.

3)Roads. There is no direct road to my property, the nearest road is only 100ft away and on the plot plans there is public space allocated for a road. Again how do I find out how much it will cost to build the road, and will i assume the entire cost, as by building this road, it would connect another 8 plots(4 on each side). Also how much does this sort of work cost(roughly!)

Also I know this is a very hard question to answer but if anyone can give me ballpark figures, it would be great. Say that all water, electricity and the sewer system are all 100ft away, what sort of costs can i expect to get them extended to my lot?

Thanks!!

I will definitely ask your advice in the future, right now I am just researching. I have a few places in mind, but have a feeling there may be reasons why these plots are more 'affordable' and still on the market. I'm having one plot checkout out by a civil engineer this week. The zoning is all in place, but hopefully I will find out what its going to take to get the plot build ready. Or if it is even possible.

Fees in LA are crazy, the school fee alone is $10,000. And as I'm sure you know, vacant plots or tear downs are hard to come by.

This hypothetical project Im looking at: A very general estimate has put the construction at $230 a foot(not including a two car garage). I hope to get it down from here. This number was calculated using worst case scenario grading and land development costs(pretty much as high as it could be before it becomes unprofitable). It also is using retail prices, which I would hope to reduce by 20% or more once work is bid out, and I figure out what I can do myself, or oversee myself.

Getting a rough grading and excavation cost is my first step, and then nailing down all the permits I will need.

From what I have seen, under $200 in LA, and Im talking the higher end areas, like West Hollywood, Eagle Rock, Mount Washington, Highland Park, Venice - under $200 would be pretty good, is this a correct assumption?

@Karen Margrave

Thanks, I actually already saw that thread - Unfortunately as mentioned in that thread, its pretty difficult to compare. Most in general are by people building anywhere but califonia which really doesn't help me much. Even more confusing, is I'm sure ppl are calculating there cost sq/ft differently.

Whats including in yours? Do you include all the inspections and permits? utilities? finishes? and what about sg ft, do you include a garage when working that out?

I live in LA, and I'm pretty sure permits etc are considerably more even compared to OC. $130 sounds pretty great to me!

Thanks Karen(big fan)!