All Forum Posts by: Franco Ruben Vargas

Hey there Franco, 

I would have to agree with the previous comments that building a well versed team would be the way to go, especially just starting out. But as I am sure you are aware the market is going crazy right now and these licensed professional are swamped (call any survey company and see how soon they can you a survey) Speaking as an Architect/Developer in the Tampa area, Depending on what your property is currently zoned you are looking at at least an 8 months to a year to receive the approved rezoning (Or PUD approval) and engineered plans. Then about another year before your project is fully built, depending on the complexity and availability of required materials. Meaning you are out 2 years before you are even able to make $1 while paying all of your professional's cash for their services (upwards of $100-$200k). On an optimistic note, there are several ways to finance a project like this. One popular way is a 5/1 ARM (fixed 5-year loan then transfers to an adjustable rate) after five years you refinance. You are also correct in your take that if you build yourself you have the ability to make more money per unit also you have the ability to control the construction budget through material selection and design. 

If you were to find an existing building you do not have to go through the rezoning process as it already exists. You may not be able to profit as much per unit after remodeling but you will be (hopefully) be making money from day 1. Both methods have their pros and cons. It really comes down to your timeline and cash reserve. 

Hope this helps

Franco,

I 100% agree with Michael Le.  It takes years of surrounding yourself with other developers and shadowing projects to try and run solo.  I would offer similar advice to Michael, I would build a team with a track record that would accomplish the goal you're looking to accomplish.  Donald Trump was a developer, not because he was knowledgeable about development but because he had the skills and negotiating power to put together a rock star team.  

If you can put together a great potential project and put a strong team around it with a deep bench of expertise your chances of success go from near zero to reasonable amount of risk.  I would look at a skilled Planner who can bring all the deliverables for a project together and help with the application process with the County/City. Strong engineering consulting (local tends to be better), Designer/Architect with a strong relationship with a Builder (ideally having completed projects like the one your proposing),  Legal (To get your offering documents together or real estate transactions) and you'll be adding more and more as you go.

I started out as your traditional buy and hold landlord and have transitioned to development, but I did it by joining a team that already had a bit of motion behind it.