All Forum Posts by: Daniel Frye

I've been playing around with ideas to further drill down on my investment criteria and came up with an idea.  In a deal, you would of course want your Return on Assets to be a higher figure than your WACC.  Does anyone out there target a specific spread between the two in order to come to a go/no go decision?

Cheers,

Daniel

Hi Dawn, I'm assuming this is a single family home?  Even so I'd like to check it out.  Please send me an email or pm.  Thanks!

Hey Jordan, send me an email at [email protected].  I'd like to talk to you about your ideas for the backyard of this property as well as your capital needs to close the deal.

I would suggest saving some money and attending some CCIM courses.  Even if you don't have the $10mm in transactions under your belt required to get the certification, I've found the education those classes provide to be invaluable.

Hi Greg, would you please send your pro forma and any supporting information to [email protected]?  We are cash buyers able to close quickly.  Thanks!

@Ed Evans I should have mentioned that the project at 7th & G will be similar in layout to what we will do, with rooftop decks etc.

@Ed Evans right now attached.  We haven't signed the contract with the architect yet so we haven't developed a design yet. There is a Christian Rice designed project at 7th & G (our architect most likely.) It is zoned for up to five units but given the parking requirements we would be able to accommodate parking for four units without going underground. Out of curiosity, where is your town home project?

@Sarah D. that would be a great option.  However the offer was from a religious organization that wants to expand their footprint in that area of Coronado with a worship center of their own.  

@Kevin Siedlecki The purchase was $2.15MM so fortunately its not small potatoes.  We have an architect, general contractor, designer, and various engineering consultants in place ready to go.  I actually was getting ready to sign the contract with the architect when I got this offer so I have held off.  

@Chris Gilbert We purchased this deal off market in a very one off kind of scenario.  Deals of this kind are very hard to find considering the competition for them in San Diego. Very limited supply of developable land.

@Andrew Johnson This is the key for me, it is difficult to tell what the demand for housing of this type will be.  I admit I am more pessimistic than most about the economy as a whole, but given the different demand dynamics of Coronado I think that it may perform slightly differently than other parts of San Diego.  The key issue here is that while this immediate payout would be very very nice, taking this project to completion would allow us to turn around and fund another project of this sort with the house's money so to speak.

@Jeff Rabinowitz There will almost certainly be cost overruns even though we will do our best to make the important design decisions at the start rather than change things and interrupt the critical path of this project.  So unless these homes just completely do not sell (if thats the case then there will be some bigger issues with our overall business plan and the economy as a whole) then we will be making considerably more money than this payout.

Overall I appreciate the feedback from all of you. Bigger Pockets has been a fantastic place to learn about REI. Its one of the key things that helped me form my business and create my plan.

There is a service called STDB or "Site to Do Business." I learned about this after taking a CCIM class in Market Analysis.  Its got every demographic measurement you could imagine along with some helpful tools when it comes to adding these things to a professional presentation.