All Forum Posts by: Account Closed

Quick example (not implying you're a hoarder) - FSBO has $2M home that is beautiful, refuses to move out of property to list it. Has 2 large dogs that must be crated in garage when buyers come to see home. Because of this, home gets only 6 offers instead of 10, because buyers don't like the home with all the junk in it (and owner has a TON of junk) buyers can't visualize themselves in the new home and thus, less offers are received and home sells for 1.9M instead of $2M. So, even though home was in a nice area, without a Realtor to tell the seller "MOVE ALL YOUR CRAP INTO STORAGE!" the owner did themselves a disservice because they wanted to save 6%. Now in this case, 6% is $120K so technically, owner did save $20K. BUT, what if owner received 3 offers instead of 10, and home sold for $1.8M instead of $2M, now owner is receiving $80K less than if they sold for $2M with 6% realtor commission.

Sellers don't always know when things are costing them money in the final sales price because most sellers are not experienced real estate professionals.

If you want to save money, consider trying to work with a Realtor who might negotiate their fees down (though some high quality Realtors will NEVER negotiate fees down).

If you truly want to do everything yourself, consider what everything is and if you have time/energy and EXPERTISE to do so.

Either way, good luck!

The question wasn't should i get a realtor; it was should i get a real estate license and how usefull would it be to an active developer.

I do complex projects, develop land and build homes for a living so the selling part is the least of my worries. I build new furnished modern architectural homes with views in very desirable locations; any idiot can sell them in the current market.

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hi folks

i am currently trying to weigh the potential benefits of getting a real estate license for my california deals.

I have $8 million of new homes to sell in one year and am understandably reluctant to the idea of handling $400,000 of my hard earned money to a realtor who will only open the doors for me

I don't think that holding a RE license would make my lenders more flexible or cheaper.

As the market is fairly hot for now, i could just pay a few hundred bucks for a MLS listing and handle the sale myself. I am a professional developer so my liability is in line anyway and no RE agent can shield me from potential claims according lawyers i've been talking to

What's your take on it?

1 Vote

Originally posted by @Jason Hsiao:

Have you talked to any banks yet @Account Closed? There's also private money lending meet ups or if you want to go the syndication route. I know crowd funding site that'll charge a small fee. I haven't used them before so not vouching for that route yet.

For now i only talked to my retail / private bank and they only finance the construction of owner occupied homes. They do not finance RE developers.

I have yet to talk with banks such as PNC which are well established in the construction financing market. Private money like hard money is expensive but probably my best bet given my lack of crendentials

Do you know what are the current average construction loan rates and LVT / LVC ratios required by local lenders in the Los Angeles area? i read somewhere between 7 and 10% with conventional lenders

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I have 3 separate new entitled construction projects that i developed myself in need of financing in the los angeles area;

About $3 millions needed to build 2 architectural homes and one warehouse

Properties are currently 100% owned outright; my company is recent and no track record yet, thus the struggle looms to find easy and cheap financing

Being new to the local financing market, what are the options beside 10% hard money loans? What LTV should i expect?

any advice welcome

Thanks

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@Ruth Bayang

thank you for the input; i'll give him a try

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Hello All,

i am looking for an experienced CPA familiar with the construction business and real estate deals in the Los Angeles area.

Any suggestion?

Thanks

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Originally posted by @Manolo D.:

Cedric Ballet I'll make some calls tomorrow, haven't done the coastal commission part but maybe my architect does. All the rest is routine. You are looking for a turn-key set with project management. I have the idea that you need Schematic Design to Open House, but at what degree you want to go? Do you want for the consultant to bring everything to you where you just pick out samples and etc?
Some don't want to pay much so they decide to be on-site all the days of the week and let the consultant handle only technicalities. I might get you a ballpark figure tomorrow.

I use to work with the same engineers (MEP, structural, civil, etc..)on most of my projects and prefer to handle that part myself; i rarely hire architects, since most of the projects i managed were copy past or even pre fabricated.

I would need interior / exterior schematic designs, permitting and construction assistance

The most critical parts according to my experience are the costal commission's handling and the construction follow up, to avoid divergence with specs and designs. When it comes to customs technical modern post and beam constructions, there is not much room for mistakes. I don't think i could replace the designer himself or are a qualified engineer to assess the work progression on that one

Sure i'd appreciate if you could get me some numbers

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Originally posted by @Manolo D.:

Some are half that price, maybe even less. 50k should be ok for both engineering stamp and archi stamp. Do you want specifications book to come with the plans? And maybe estimates? That could go 10k more. Project management and consultant not included. A turn-key package (including pulling permits) sounds about 10% but you could go as low as 5-7% if you package both. I know some people. Or I could put it together.

just a bit more infos about the project:

2 homes, 3000sqft each side by side

modernist design, mid century style

individual custom designs but sharing similar features to create economies of scale

both built on flat pads

project is in the coastal commission area (malibu)

building and safety visits and corrections, preparation for the coastal commission hearings, assistance during the construction phase, related expenses, all these items need considerations as i know they are not always included

I'm looking for full service as timing will be critical and would package both projects at the same time.

Are the numbers you give in the LA area?

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Hello all,

i'm looking for an architect for a 2 homes project in the Malibu area.

The plan is to build 2 nice different modern homes on 2 lots side by side.

I know architect fees range in the 10% area, however, given the high budget of such project, around 1.5 millions, i was wondering what is the fair rate and if the fee should include consultants and engineering costs.

Any input would be appreciated

Best

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All Forum Posts by: Account Closed

Account Closed has started 17 posts and replied 75 times.

Post: What are the going Hard/Private money rates near you?

Post: Is it worth holding a real estate license as a developer?

Post: Is it worth holding a real estate license as a developer?

Post: construction financing for small developer in los angeles?

Post: construction financing for small developer in los angeles?

Post: looking for real estate / construction accountant - los angeles

Post: looking for real estate / construction accountant - los angeles

Post: Architect fees in the Los Angeles areas

Post: Architect fees in the Los Angeles areas

Post: Architect fees in the Los Angeles areas