All Forum Posts by: Eric Teran

@Abraham Pereda in my experience no. I own two apartments and a cabin in the jungle all in Ecuador. No bank here would give us a loan other than a personal loan. They said if something went wrong or we stopped paying the mortgage that they had no recourse or leverage on us.

Also, all banks in different countries are their own bank. For example, when I lived in Spain I had a Citibank account in California and one in Spain. However, they were different banks with different regulations. I couldn’t just transfer money between my accounts but has to make international wires.

I don’t see this happening. Especially if this is your first project. If you do make it happen please let us know.

Good luck.

@Lou Smith I just thought of a few more things. Since this lot would not be commercial yet any information you get from the city have it in writing. It may take a while but you don’t want them to change it in you once it finally becomes commercial.

Also, the bank will give you a loan depending what will be built there so you will have to produce some plans. Another option would be to go through the entire process and then sell it to the existing commercial properties next door and let them have it. It maybe more value to them than you trying to build something new.

@Lou Smith the next question that has to be asked is what can be built in the lot if it is commercial. For example, I had a client who had a commercial lot next to residential but since it was next to residential lots they had bigger setbacks along those property lines. Also, there are usually more requirements sucks as parking, open space, green space, FAR (floor area ratio) and much more. Just because it will become a commercial lot doesn’t make it more valuable.

With commercial you have two options. Most owners will usually build the core and shell and rent out spaces to tenants who do their own design within the spaces. The other option is to build the building to house your own business. I guess you could also do a combination of the two.

Before you go further find out from the planning and zoning department what could be built if the lot was commercial. If it is a favorable size then find out who would be your tenants and how much they would be in rent. You may need an Architect to perform a feasibility study if the codes are complicated.

@Lou Smith this is an enormous uphill task to change the zoning to commercial from residential. It would require a variance and those are a pain, lots of money, time, and are likely to fail.

Usually, most residential zones will allow for various types of uses like daycares, assisted living, religious buildings and so forth. However, to change it to commercial will not be a likely outcome.

Maybe, if it was adjacent to a commercial zone and all the residential neighbors had to have a coffee shop and would support you till the end and the city wanted to bring in that specific type of business and the lot was so unique that it had to be there. Then maybe you will have a 2% chance of changing the zoning. What I am trying to say is that you have to show how this is a truly unique situation, get all the neighbors on board and have the city planning department support you.

Good luck.

@Bayra Batchuluun it depends your location, project size, and budget. I have six contractors that I trust and recommend but I need more information. For example, a small cosmetic flip I have one guy, for a complete gut another, and for a homeowner with a million dollar project it is another a guy.

Architects are a good place to ask because we want to make sure the contractor builds our plans correctly. Realtors that have clients who flip and fellow developers also have good recommendations.

Good luck.

@Rachan Malhotra the first question is how big of a flip are you doing? In DC a 3-4 month flip is all cosmetic or maybe a very small remodel where a permit may be obtained with a walk-through.

If you are going to lower a cellar slab, add a pop up or do an extensive remodel/gut the permitting process alone will take 4-6 months (design, permit set, DCRA review). Construction may take another 6-12 months.

In the first scenario you don’t necessarily need an Architect but it doesn’t hurt. However, DC will require plans drawn to scale. I’ve done plans for as low as $4k when it is a small straight forward job.

In the second scenario you definitely need an Architect and possibly structural and MEP engineers. For professional fees this scenario will be between $10k to $40k. It just depends how big the job is.

Your permit fee is a percentage of the estimated construction cost. For example, $100k estimate the fee will be around $2,300.

Your Architect should be able to give you some names for GC. I can also send you a few. Just let me know what type of project you are doing and the budget so I know who to recommend.

If you want a smooth process pay the money to have a solid team upfront. Pay a little more at the beginning and it will save you money during construction. The more information the permit plans have the fewer question and changes during construction which leads too added costs.

The stop work orders are during construction. There should be no reason for this. It is the GC being sloppy or miscommunication and the fee ranges from $4k to $10k and may delay the project a few weeks.

I’ve done a few quick permit sets for developers. It is easier than with homeowner or a first timer because it is a business and not personal. Remember you need to think of the numbers. Don’t make your decisions personal so that the design process drags its feet. In regards to the architect make sure they know if they need to submit plans to DC Water, DOEE, and/or DDOT. They can hold up the plans if not submitted correctly or at the beginning. If this is a big project you may need a Manual J. If it is historic you need to provide detailed elevations and window details. If you are converting a cellar to a unit it needs to have fire sprinklers.

I can go on but if you want it quick you need to know exactly what is required when submitting plans. Last thing, if it is a small project and it is a walk-through you have to know which reviewer to speak to. This can make a huge difference!!!

I am happy to answer more questions but give me an idea of the project so I can be more specific.

Good luck.

@Ian Carter a lot of times flippers will do it the easy way and then the homeowners discover something like this. There is a lot of space between the two walls. Your question is too hard to determine without doing a site visit and determining the directions of the joists and what is above.

A few questions:

1. Is the new wall carrying the addition above? 

2. What is above the old wall?  

3. Can you figure out the joist direction?

It may be a big cost but it depends on what you are going to do with the space. If you are going to convert it into a rental it may be worth it. For example, it may cost an additional $10k to remove the wall and install a beam but you may earn more money and within a year or two it will have been paid off. 

@Josiah Keener20" is great! If you need an Architect I would be happy to help you. Actually, in DC you will need an Architect and structural engineer to lower a slab. Depending on what you are doing to the cellar (you want it to be a cellar and not a basement, they are different in DC) will depend if you also need an MEP (mechanical, electrical, plumbing) engineer. I will PM you. 

@Rachan Malhotra might? You definitely should. You have gone this far. What is one more phone call? Keep us posted.

@Josiah Keener you can dig the hole yourself. Be careful and do not damage the party wall or footings. You want to dig next to it and dig deep enough until you get to the underside of the footing. To drop the slab 7" you want the footing to be at least another 8" deep. Those 8" is for a 4" slab, some gravel, and insulation. When you dig you want the bottom of the footing to be at least 15" from the top of the slab. If it is more then you can have a higher ceiling. If it is less then you will have to do underpinning. Also, remember, if you see the photos I provided you can see the footing sticking out. You cannot remove that without underpinning. You have to keep that in and you will have a step at the bottom of the wall. Most of my clients are fine with this as this is a rental unit.