All Forum Posts by: Chris Blackburn

We are in the process of entitling several projects(40-120 units)- We plan to do a bridge/construction to HUD. Bridge loan is 5.5%. The new HUD rules let us apply as soon as we hit 85% occupancy. This should give us a 35 year fixed rate currently at 2.5%. We can do a LTV at 85% and this will allow us to borrow back almost all the our and the investor's capital (Total time out 2-3 years). We are finishing up a easy 18 Plex in Keizer Oregon. Our plan is do build easy 3 story 18 Plex garden walk ups on flat, RM zoned parcels in the Willamette Valley. (Salem Metro area, 2nd largest in Oregon). We have a few projects where the owner will contribute the land and we have some of the MEPS who would like to invest as well. The whole plan is to mitigate risk. We typically contribute most of the developer fee. Again- the key reducing as many leaks as possible and getting the project built( our team can do this). Get the project cash flowing, get the investors a return- THEN you earned getting paid. If the interest rates stay low- refi-to funds to the investors (Returned investment, Equity + Payments) and if they are happy- they will invest again. (NOTE- this only currently works with our LOW LOW interest rates) when these go back up- the ability or logic of doing a 85% LTV cash out does not work. Payment is too high. Below are a few of the projects we have completed.

Welcome!  We need (mitigated) risk takers like you in Oregon!  It's a long walk but worth the journey!  

@Rylan Lacey I assume you are going to be selling this project- So a bridge to HUD loan does not make much sense. (We currently have a Bridge to HUD in progress) With the changes in HUD- we get to a 35 year perm loan and (Hoping) sub 3%. (Keeping the asset) I would love to see your actual numbers for your build. We have a 17 unit build cost (plus small onsite storage), currently finishing up a 18 unit complex. Starting a 42 unit in Jan. We are excited about a number of new innovations that may remove the cost of lumber out of our equation, and speed up the build process by 30%. My goal is eventually have a 6 month build schedule. I will be documenting the process with some larger project we have on the board. I would love to connect and compare real costs. I have some real live examples broken down into percentage specifics.

We are doing a 10 lot subdivision in Salem Oregon. We have a 1/2 street improvement that requires 2 street lights from PGE (Portland General Electric)   

PGE is asking for an Illumination engineer to pick the correct wattage and throw of the street lights (so they do not shine in the neighbors yard and light up the street/sidewalk correctly.  There are literally 4 Leotek lights to choose from and a few vents that change the light throw.

They make software to show you what works:

https://www.visual-3d.com/software/roadwaytool.aspx
https://www.visual-3d.com/Downloads/Documents/RoadwayTool.pdf

My question is why it would cost $1500-$2000 for them to run the appropriate software to choose one of the 4 light fixtures for 2 street lights-  They are not designing the light post, the electrical or any other aspects?   Is this well lit highway robbery?   

@Pete T.   Pete-  Stay tuned.  We are working to produce this at an affordable level.  With the cost of lumber- you will see some really affordable solutions.

@Rusty Thompson   Are you still dealing with SIPs?  I would love to talk to you about this- We have some great resources for different products right here in Salem!   The Freres MPP is an great local product  https://frereslumber.com/produ...   lots of videos on youtube.   Also we have several business that could adapt or use.   Idea box www.ideabox.com ,  International housing concepts https://www.homesfromihc.com,  Twenty 20

https://www.2020smi.com   Would love to talk to you more about this.

@Greg Dickerson  @Srini Karanam From the units we are currently building-  Your price of $100 a foot may be off- but I am using the costs from building in Oregon.   All in cost w/ land/loan/hard and soft costs come in at $145-170 a foot for your standard meat and potatoes apartments.   Would love to see the break down of where your costs are coming from- Here is what it looks like for a 18 flex:  From 2017   Notice you do not see land costs in there.  Wow is it expensive to build- With your price in TX- I wonder if I am getting ripped off? This is from 2017- prices are at least %10 more now

@Greg Dickersonundefined

@Jon Klaus    Jon,  that modern you put together (7 years ago?) is still looking great.  Have you done any more modern projects?  Looking around for some examples put together by someone who is trying to sell them and make a few $$.  Architects are good as spending the developers/builders $.   Would love to see your latest examples.  (I will check through your posts)  We are currently putting together a portfolio of panelized versions.  Also- you said 7 years ago that the cost was $130 a foot,  where do think the same numbers would be today?

@Pavel Shemyakin   Pavel-  I will have a solution for you soon.   Yes-  steel residential is coming.  Working with a company in stealth mode that will be able to solve this problem.  I think the idea of $10 a foot may be a bit off.  Maybe if you are looking at just the material with no labor or or other hard costs?   

@Chris K.  @Spencer Gray @Evan Polaski @Adrian Chu    We will be putting together a panelized version of this product.    I am excited to see how a panel system will change some of our timelines.  Essentially I want to have this put together like clock work on site- I will work with the MEPs to refine and improve.  All the subs will do a Pre-Architectural meeting to help our architect understand how to simplify and streamline the process.  This will include designing exterior/interior walls with minimum cuts (if any).  Again- if we can refine the 18 plex- design and re-use it over and over-  The architect will not have to "Design from ground up", the trades will already know the build costs to the penny.  Timelines can be measured, improved and metricized.  Incentives can be added for speed.  Since we are using steel stud- our current lumber cost crisis is lessened.  I want this to be super boring building  (SBB).  Like watching a Ford factory run.   Maybe I need to put together a group that is interested in trying the same.