All Forum Posts by: Jake Andersen

The project:

We are developing a 40-60 unit apartment building in the mountains of Colorado. Property values in the area are high...so are construction costs. We are exploring options as far as straight rezoning in High-Density Residential or working through the PUD process to gain an additional 20+ units. 40 are use-by-right within the zoning. We own the land free and clear(approximate value 2M). We are considering modular or traditional builds.

The problem:

My partners and I manage a portfolio of property that spans multiple states and a variety of property types. We have never developed a multi-family property. I am seeking guidance in this process. Specifically in creating a proforma to determine which of the available size and construction options makes to most sense from a risk/return perspective. I am unfamiliar with where to start and how to gather the information. I'm also interested in general knowledge of the multifamily development process(which loan vehicles may be best, which pitfalls to avoid, etc.). Anything helps. Thank you.

Happy to discuss project location and specifics in private messages. Thank you.

Look into strategies like owner financing, wholesaling, shortsales, etc. All of these strategies will allow you to purchase properties without using credit or money down. They can be very low risk and very profitable if executed correctly. Search the strategies listed above on this site and find out more from other posts. There are so many options for you and the information you need goes further than this reply. Always remember that the number one thing that you need is tenacity! Never give up. This can, and will work :D Good luck.

I keep hearing about people using bailout money to rehab and reposition commercial properties. Is this actually happening? If so, how do I go about securing these deals? Thanks, in advance, to all those who respond :D

That is perfect! Thank you very much Jim. Do you know off hand of any lending companies that require short or now seasoning? And are there any creative strategies around this? Would a land trust work? Or if I worked with the buyer as an equity partner? Just thoughts. Thanks sooo much for your help.

Just got back from a network meeting with some fix and flip people from the local REIA. Many of these people have been in real estate for 20 years and many had fears and complaints about the way things are now. Im not one for fearful talk....I hate it! I don't care about the 1001 ways it doesn't work. I only want to know the 1 that it does. But I am curious as to how many of these stories are true. How bad has it gotten? What new laws help and hurt us as investors? Do I really have to let a property sit with me on the title for several months before I can sell it? I know this wont be for every case, but what are the truths here and MUCH more important, how can I get around these bumps? Thank you to all who reply.

I may not be the right person to answer this mitch but that is how i understand it and my title company is setting things up to do just that during our shortsale transactions.

Thank you for your advice. It is much appreciated.

You two are awesome. Thank you both so much. This add was actually for craigslist. FREE. But thanks for reminding me that I need to keep things simple. And I just went to my first REI meeting the other day. Answered lots of questions. My business partner is attending another on tuesday, Ill have her ask these questions. I honestly don tknow where I would be without guys like you two and a website like this. Thanks a ton.

I know that there are certain things that I cant say when advertising. Whether for buyers or sellers. Beyond the obvious non-discriminatory words and phrases what else is prohibited? I was considering posting this ad for buyers but I dont want to get in trouble, please let me know what your thoughts are. Thank you very much. jake

"Want to find REAL DEALS? These days everything is a supposed short sale. Most of these 'deals' are simply people or realtors just hoping that their lender will approve your offer. We have ownership of the properties we sell. We move our inventory fast and in order to do so we sell properties at HUGE discounts. We purchase our properties below CURRENT(not two years ago) market value and pass the saving on to you. If you have cash, can get pre-approved for a loan, or are interested in leasing with an option to purchase we will have deals for you. Respond to this ad and we will discuss what we can do for you. We look forward to serving you. "

WOW! That's awesome. Thanks for taking the time to explain that to me. It certainly helps. I have some idea of what is happening now. I am just referring to shorting the second to build equity in a short sale situation. I would never go after the sellers, obviously, because it is them that I am trying to help. You two have definitely helped me understand this much more clearly. I only knew that I could short the second to build equity, but that I would have to buy it outright to have the lien removed from the property so that I could finish the short sale. I thought that instead of me doing this that perhaps a note buyer could just take it off my hands since that is what they do. But apparently that's NOT what they do. I was wondering how someone could possibly make money holding a financial instrument that wasn't backed by anything and that nobody was paying on. Now it makes sense. because what I thought earlier certainly didn't. Thank you for clearing that up gentlemen. Alright, no more dumb questions! :D Cheers, jake