All Forum Posts by: Trey Bonner

@Chris Martin, no we decided to press pause for now. The land has since appreciated with the development of a new a EV plant (construction already started) a few miles away. In addition to new access to the interstate (less than 2 mile away), the EV company is building their own little city roughly 5 miles from us.  We are waiting to see how the development and local government invest. A solar farm is still on the board but we want to make sure we have a good understanding of the area path of progress and future plans/investments.

I would love to hear more about your experience standing up a 500kw solar farm. From what I can tell it is a massive undertaking with no existing playbook to help get from point A to the end goal.

Thanks for your quick responses. 

I figured we probably did not have any leverage to ensure we gain access after DD. Thanks for confirming @Max T.

I agree @Joe Splitrock seems that they don't want to deal with the tenant and not concerned about accommodating us considering DD has concluded. Great suggestion to ask them to post a 24 hour notice. There is a right to terminate clause in the existing lease so we plan to issue a 60 day notice to the tenant when (if) we close. Seller is not willing to issue the notice now (understandably in case we don't close on the sale).  

Thanks again guys. Super helpful

Hi BP Fam, 

I am currently under contract for a duplex in Atlanta metro (East Point). During due diligence we were able to access one unit (which has a tenant) once, which happened to be during a time that my contractor was not able to come. We have since ended due diligence and currently working to have my contractor provide a final quote for the rehab. In order to do this, he needs to see the tenant-occupied unit. After requesting access, the seller indicated that we will not be able to access the other unit until our final walk through because the tenant is nonresponsive. The existing lease has a right to access clause as well (I believe 24 hours). 

Is this acceptable? By law, is the seller required to provide access to the property while we are under contract (or is access only required during due diligence)? Considering that the lease has a right to access clause, should/can I be persistent in asking for access? The property definitely needs work which is why I need a finalized quote before moving forward on the purchase. 

Thanks for your thoughts. This is uncharted territory for us. 

And regarding the downside, I was thinking about the decrease in returns if we lease vs develop ourselves. You nicely laid out the pros and cons of both. Definitely a lot to consider as we move forward 

@Alan F. Thank you. This is definitely good info to know. I plan to do a little more research

@Mason Moreland thanks for your response in the forum and direct message. Super insightful. I will follow up with you via DM because I'd like to schedule a call sometime next week to talk a bit more (if you're open and available).

Thanks Mason, we are leaning more towards buying and operating the solar farm ourselves, if feasible. Leasing our land would be less than ideal. I was hoping to be pointed to additional resources that could layout our options and help determine what is actual feasible. Do you have any thoughts? I am definitely open to connecting. Thanks for your response

Hi BP family. I am wondering if anyone in the community has insights on utility scale solar farms developments. My family owns 100+ acres in TN and we are in the early stages of exploring our options. I am currently reading Solar Farms by Susan Neill, Geoff Stapleton, et al. to gain a baseline understanding of the industry and whether our property is ideal for a solar farm. Based on the book, a key component that impacts whether the project will be successful is to identify an experienced EPC company/group and a broker to help on the financial side. 

I am reaching out to the community to ask if anyone knows of resources (books, articles, examples, contacts) that could help layout the entire process from land assessment, leasing our land versus purchasing and operating the farm on our own, finances, timeline, etc. 

Thanks in advance for your thoughts. 

Great point @Account Closed. I will adjust the capex and property taxes. I agree that the county will catch up, but completely forgot to reflect that in the final numbers. 

My strategy is to put Section 8 tenants in for the first few years. What has been great about our current SFH rental is that the city's portion of the section 8 rent covers my note so I am able to fulfill all debt services independent of the tenant's payment. The numbers imply I should be able to do the same with the quad, covering debt services with the city's paid portion of rent from 3 units.

Thanks for taking the time to review the numbers! Just wanted to make sure I haven't left out an glaring/costly expenses. 

Hi BP,

I'm a newer investor, only purchasing our first real estate investment property in 2020 (SFH). Our 2021 goal is to buy a small multifamily, preferably 4 units. I found a property that is in our focus Atlanta neighborhood but would require a ton of renovating and seller financing to make it work. I was hoping the BP community could take a look at my numbers to ensure everything pencils out before I talk to the current owner. I want to be confident that everything is in alignment/accurate.

A little background, I have an investor willing to allow me to borrow $100,000, in return for $112,000 when I refinance the property in roughly 15 months. The seller is firm on a $200,000 cash purchase price for the property, which is a quadplex.

Specific Questions:

• - Any expenses inadvertently omitted either within my holding cost or seasoning period?
• - Do all numbers make sense?
• - Any suggestion on the structuring of the deal?
• - The refi wouldn’t occur until 2022…..I am concerned that this could be a huge risk depending on if we see a dip in property values by early 2022. Thoughts?

@Canesha Edwards Thanks for your response. We live in Westview (West End) and are familiar with the Sylvan Hills/Terry Perry Studios and East Point/College Park. We almost purchased our first investment property in Sylvan Hills earlier this year. I have been driving around East Point for the past 2 months and feel pretty familiar with the area. Union City on the other hand, I know nothing about. I see all the development headed for East Point but was not sure if the path of progress is headed towards Union City or any other neighborhoods directly outside of the Perimeter (and no more than 30 minutes from Hartsfield Jackson). I agree with you, it seems that it's only a matter of time before investors start looking in some of these areas.  

@Demarcus Crump thanks for your message. I just accepted your colleague request