All Forum Posts by: Caleb Chandler

Thank you for response. I would agree, but the area in question, any comp is a premium. We make a corner adjustment to the comps, and size adjustments, marketability, site, view, etc.

What I am trying to decifer, or judge this debate is, what is the best approach to value a property like this. My opinion is the highest value is vacant land as highest and best use only. Another opinion is an investor will buy the property, and hold, so they are adding an income value to the Sales Comparison value. I am trying to wrap my brain around why an investor would do that. They would have to find another investor that would want to buy and hold, and the property never reaches its highest and best use. Again, In my mind.

Good Day,

I am writing here today, as I am struggling with a valuation of an opportunity for listing. I am familiar with the valuation approaches, and highest and best use. However, I am a bit confused with what peers are trying to tell me.

First, we found some properties that we felt are solid comps for our sales comparison approach, one of which included a sale that hasn't yet closed, but clearing has started for a national restaurant (1/4 mile same street). Another was adjoining to the subject property, and a third was purchased just down the street (1/4 mile).

Unsettled sale was for $750,000.00 and cleared. (corner lot) 1.91 acres

The Next was most likely purchased for it's highest and best use on a corner lot, and sold for $840,000.00. It has 2 houses on it, one of which is collecting $1000.00 per month. 2.29 acres

The third was purchased for $575,000 for the purpose of a vacant lot. 1.68 acres

The subject property in close proximity in the same neighborhood.

The subject property (.89 acres) has been grown around, and has some improvements on it. Not conforming to the neighborhood, but are income generating. The property is currently netting around $18,000.00 per year.

Based on the information above, what do you believe the value would be (roughly)? What would you call the highest and best use for this property? Etc?

I have debated what I feel the property is worth with some peers, and was hoping maybe some of you folks could shed some light on this.

Thanks all for the advice. I must apologize for not replying sooner. My intentions were to pick at the brains throughout my infancy stages. The pre-licensing education, holidays, and shadowing a real estate broker, I became a bit overwhelmed.

@William T. It was a poor attempt at humor. I guess I am not going to be doing stand up anytime soon. I am quite fortunate in regards to the mentor you mentioned. I have been shadowing a broker that has been doing commercial real estate for over 40 years, and hope to take over for him (and his network) within the next couple years

@Nicholas Gonzalez Sales and Leasing primarily. We live in a relatively small rural area (which the Oil & Gas company are taking over), and will work in agricultural also

@Joel Owens It funny, I find myself applying some of the information I have received to everyday activities. It is almost like a blindfold has been removed.

@Patrick D. 50/50 or better, depending on how much I bring in. In addition, we have worked out compensation on current listings.

Again, thanks for all the advice.

Good day all,

Over 7 months ago I stumbled across this site while trying to educate myself on real estate investing. The knowledge on this board is astonishing, and I am excited to pick at that knowledge, if willing.

My question is simple in nature, but I assume it is probably more open ended than expected. What do I need to know? See simple!

In addition, I will be pursuing a CCIM designation at the brokers behest, and paid for by the brokerage.

I have so many more questions, but I would look forward to any comments/advice you might be willing to share.

Thanks,

Caleb

I have the books. I forgot I have them.

I think the Book on Estimating Rehab Costs is what I needed.

Thanks.

Once I complete the template, may I send it to you for review?

Good Day All,

I am attempting to learn Microsoft Project, and create a project template. I will also create a template in a spreadsheet. I understand that no two projects are a like. I am new to real estate investing, but my experience is in project management. The most important thing I have learn through my experience, and I can't stress it enough, is that nothing is going to go as planned. However, a well planned project will help manage the unexpected.

The template will start from the approval of an offer. If you are willing to help me out, please assume that everything needs to be rehabilitation. What steps are done consecutively, and which tasks can be done simultaneously.

I have referred to some of the rehab analysis tools available on this site, and they are great. However, I am attempting to create a starting point for each project, and something I can hand to my project manager to follow.

Thanks in advance for your help.

I would let him make the offer. Find the deal, and then tell him how much you need. If he comes back with a deal you feel is to steep negotiate it, actually negotiate it anyway because he is going to start high anyway.

You are both new to this industry, but he most likely has investment experience of some sort.

Hello board,

I am reaching out this morning to see if I may gather some knowledge. I am closing in on presenting my plan to some investors, and I have one aspect I am torn on (Well one I am asking about here :) ).

What are the pros and cons of hiring employees vs using sub contractors? My goal is to flip homes, and if I am long with the investment, buy and hold as a rental property till we get short with the investment. The first downfall is the employee taxes and benefits, but is there any other negatives.

My thought is to establish a construction company separate to the investment company, but right now it would be just departmentalized.

Thanks for taking the time to read this, and the advice I may receive.

Thanks,
Caleb

Good Day all,

I am extremely grateful that I came across this website, and the knowledge that I have already received over the past few days. I wish I came across this website sooner!

I have been running businesses for other people for more than 10 years, and decided that it is now my turn, since the business closed. I have been looking for work for the past few months, and since I have wanted to get into real estate for the past 10 years, I have decided I am going to do what I want to do for a change. I am starting a company to flip houses. My mentor has been in the community for 50+ years, and is well known in the construction world. Wish me luck!

Well that is me in a nutshell, and look forward to the relationships and knowledge I may build from this community.

Thanks all,
Caleb