All Forum Posts by: Nhi Nguyen

ahhh it's so frustrating. I've typed up some rather long responds, but had to stop for lunch & talk to the guys. Both times when I came back it's all gone even though it said clearly that's "draft saved at hr:min:sec". Not sure if it's the forum bug or Apple browser.  Haha. 

Anyway, 

@James Peterson : I don't have the information with me but it's about 2400-2500 sqft SFHs, about 5500-6000+ sqft lots. It's in San Jose where the comps are very favorable. 

@Account Closed : I'd be financing the investment of course. I'm not at that level yet J :) I wish to be in near future though, hahaha. As for plan B, I know what you're talking about. They have not spoken about it specifically. I guess if the numbers work, and market drop from 10-30% then selling out quickly to break even or lose a bit would be one plan. Renting would probably be a must depending on the market conditions and all partners' votes I guess. 

I have a meeting with their office tomorrow. Will see if they have anything else solid. 

Thanks again everyone for the great inputs. 

As for partnership structure and paperwork/lawyer kinda stuffs: is there anything I should be aware of, or need to find out? 

Thanks @J. Martin : thanks for bringing it up. Basically it's a $5M total cost projection, to develop a 6 SFHs, expected to make a 30-35% net profit (about $1.5-$1.75M). The owner of the project (broker) is looking for max 5 other investors, with minimum $500k/ea to join. He can handle from $500k to 50% of total cost on his share. I want to invest as one partner, and would be the builder as well. I just wanna bring it up to see what everyone's thoughts are. That's all. 

I have 8.1 on 6+ & iPad.

oh okay.  Thanks @Jon Klaus .  I have to toy more with the keyword alerts.  I only used one or two of them I think.  :)

About the @: I used it on my iPhone too and it worked. 

Thanks @Jon Klaus but your mentions don't work yet.  :) 

Greetings everyone.

As some of you know, I'm building a new house in San Jose, documented here: http://www.biggerpockets.com/forums/522/topics/154... , which scheduled to be finished in a couple of months.  So I'm itching to look for a similar project.

I'm really passionate about spec homes and major addition projects in better neighborhoods in the Bay Area ($300+/sqft).  That's why on my hunt for projects to line up after I finish the current, my cousin (broker) introduced me to the following.  

I've been reading on this sub-forum that some of you been suggesting to keep the return at least 20% to make sure it's worth the time & effort.  Please give inputs/advice on this deal.

+ High overview numbers:

- Land acquisition: ~$2M

- Soft cost: $600k

- Construction cost: $2M-$2.25M

- Sale price: $7.2M

- Closing costs: $850K

- Net return: $6.35M - ($4.6M-$4.85M) = $1.75M-$1.5M

==> %of return: ~30-35%

His office wants to structure as follow, roughly:

+ Partnership structure:

- Broker firm (owner of project): up to 50%

- Max 6 partners, preferably less

- Min to enter: $500K

- Min for project to start: $1.5M from partners other than the broker firm.

I would be both investing and building the project to have my skin in the game.  It's a 6 units subdivision that has all plans approved waiting for permits to be pulled (I'll verify with the building department this week).

So, those who have a better sense of market condition in the next year or so for Bay Area - Silicon Valley: what's your gut feeling about this project?

Anything I should check/know in term of paperwork, legal documents, structure of the partnership, etc...  ?  

I'm talking to some of my clients to see if they're interested in joining.  So I'd like to arm myself with as much knowledge as possible before asking.

Thank you.

James, one of the methods my agent is using is postcard mailing.  His includes local market snapshot (what's selling in the area, etc...), a calendar (so people can post on their fridge's), and some other useful info.  He said he got some leads (listings) from it, not sure how many.

Another one (friend of mine) posts his listings and updates on recently sold properties on his personal Facebook page.  So it pretty much acts as a reminder for all his circle of friends that "hey remember I'm an agent.  Buy & sell your houses with me". :)

I was about to write something, but noticed that @Karen Margrave wrote them all so well.  Hehehe!

Well said Karen.

All other suggestions here are very solid too!!!  Good read for newbies. 

Welcome Ramon.  How's the market in Fresno, in terms of deals on fixers?

It seems pretty dry up around my area!  Or maybe I haven't met great wholesalers yet :)

I think the OP is getting back to his lurking mode.  :)