All Forum Posts by: Chris Field

Yes sub meter it! A water bill is a cost which will never go away. 

My current project has nine separate services which was expensive and is a bit of a PITA to transfer the water bill to the tenants. My next project I'm going to use private meters. A number of companies offer electronic ones for painless off site meter readings and billing.

I'd love to find a fixed rate loan. My uncle scored one for 15 years at 5% last year but the bank isn't doing those anymore. What a sweet loan. 

Hi John, yes Buddy is my business partner, I may have met you before a well? 

James I have no issues getting financing with new construction.

Typically I get 25 year loans with a 5 year adjust, right now I'm paying 5% interest. Max LTV is 70%.

Commercial loans have higher closing costs, and higher appraisal costs as well.

As said above go to a small bank, these are typically portfolio loans for them.

Flat roofs are horrible, if its a keeper I'd frame a real roof over it. 

Three cars yes, building past code is a waste of money. Put the money where people will see it. 

Thanks guys!

Chris L, I'll look at anything my bread and butter are junk houses and land. Shoot me an email anytime.

When buying dirt for multi family properties you need to buy it at the right price, $99k for 8 units could be a steal in your area or it may not be. Look at what the other guys in town are paying for dirt. 

In my area C units are $10k, B are $20k, A $30k, and A+ can be high, IE waterfront. 

So in other words that 8 unit site in an A location, my favorite would be worth $240k to me, approved. That includes all engineering, city approvals, etc. Which in my area can run $30k on a parcel like that. 

Typically on the back side after everything is built, you want to have lots of equity from day one, and cash flow from day one. If you can't do both its not worth the risk and time. 

So to figure out if this is a good deal you need a couple pieces of info:

1. How much is the dirt really worth? 

2. How much will it cost you to build whatever you need to get the rents.

3. Will local rents support this.

4. Will local valuations come resale time reward you with equity?

You need equity for two main reasons:

1. On deals like this banks typically only lend up to 70% LTV, and really you don't want to go higher than that. If you buy right you don't need to come up with lots of money to get to that LTV level.

2. The icing on the cake, if/when the market gets smoking hot you can condo them out for a fantastic profit. 

Typically rear lots are worth less to a builder because of the increased costs to develop them. 

Having said that costs very significantly depending on what utilities are available, and what the local city wants done.

IE can you get away with overhead electric or underground? City sewer? Gravity or forced? etc, etc.

I just wanted to introduce myself, my name is Chris.

I have been in real estate since 2007; briefly as a real estate agent. I no longer have my license, it was a good college job but it wasn't for me. I moved on to new home construction and have been doing that ever since. Recently I have begun moving into rentals. 

Currently I only have one rental site, which consists of 9 townhouses, I just completed it and as of May 1st its fully occupied and cash flowing. I'm working on my next site which is 15 units, same thing just a bit larger. I enjoy and understand new construction so my plan is to build my rental portfolio...literally!

I love the business, and this forum looks like a great place to talk shop with fellow investors!