All Forum Posts by: Kris Benson

BP Team,

I am going through the underwriting process with a bank on our new 16 unit development project.

The bank has asked for a marketing plan on how we plan to engage renters into our new building. Does anyone have any templates that we can use? I will speak with the banker next week on the specifics she is looking for but just hoping to not re create the wheel.

Kris

Kenneth, I am using $500 per unit per year for year 1, I am not sure as this is my first new development so I dont have a good idea of what to use for new unit maintenance. If anyone has a good benchmark to use I would appreciate the feedback. Our insurance agent is working on the quote right now but we will be in the ballpark.

Jon, my partner and I will be managing it ourselves at least initially.

Kris

Whoops, here is the link to the file....

http://www.biggerpockets.com/files/user/FivePines/file/16-unit-development

BP Team,

Take a look at our first draft of a 16 Unit Pro Forma new development we are working on.

I would be very curious for your feedback. Meeting with the town tomorrow and bank on Friday so we should get some concrete terms on taxes and financing by the end of the week.

Kris

Does anyone have any good examples of a new construction pro forma tool?

I am looking at developing some small apartment buildings on raw land and wanted to see if there was anything out there. I looked in the FilePlace but didnt see anything for new construction.

Thanks

Kris

BP Team,

As part of the next phase of my business plan I am building my real estate team. First member? A strong commerical real estate agent in the capital district.

Any recommendations? I am working towards a portfolio of small apartment buildings between 4-50 units. I will do some homework on the web but any personal experiences would be greatly appreciated!

Thanks

Kris

Hey Guys,

I have done a demographic overview on the area I live in to try and narrow down the best place to start my real estate investing. I am looking to create passive income with a buy and hold strategy in small apartment buildings.

Here is an excel document broken down by county. Please let me know if you think I have missed anything important as I am still learning what I should be looking for.

http://www.biggerpockets.com/files/user/FivePines/file/capital-district-demographic-research

Here is some of that data in PowerPoint to help identify some of the visual trends. Looks like Saratoga County is a good place to start!

http://www.biggerpockets.com/files/user/FivePines/file/capital-district-demographic-study

Any helpful feedback would be greatly appreciated!

Kris

David,

I am reading Buy It, Rent It, Profit! by Bryan M. Chavis.

I have been very impressed with the number of examples and checklist templates included in the text. Very detailed and process oriented. I know for me it has been extremely helpful in helping me develop my systems for market analysis and due diligence on a property!

Good Luck!

Kris

Happy Holidays!

How do we create a value of future potential of a property? This numbers below are for a 12 unit for sale in upstate NY.

Based on rent roll 2% rule means we should look at a purchase price of around $400K. Obviously the value here is in the future development of the land....Just curious how you go about evaluating potential.

The property is zoned planned development. The asking price is $900,000 and the owner will accept offers. It consists of 3 buildings on a 43 acre site with four 1386 sq ft, 2 bed 1 bath units in each building. It consistently runs at 100% occupancy but has had one unit vacant for the past 2 months. The property is approved for 2 additional buildings but approvals for additional buildings could be sought.

The financials for 2012 are as follows:
Rental income: $96,270
Advertising: $222
Cleaning and Maint: $3,163
Commissions: $1,898
Insurance: $5,469
Legal fees: $60
Mgt. fees: $2,230
Repairs: $5,937
Supplies: $4,017
Taxes: $19,340
Utilities: $7,170

Thanks guys for the responses.

Scott this tool is an excellent overview of the major metro markets around the US. At the point I am at right now I am looking locally to invest where I know. There are deals here I just need to capitalize on them. I like the idea of contact the local lenders for more detailed info. I will give it a shot!