All Forum Posts by: Jesse Lopez

Quote from @Nik Moushon:

@Jesse Lopez First, stop talking to that "planner" you have. Anything over a 3 unit (some states 2 units) REQUIRES an architect. If that "planner" doesnt know that; they are an idiot that you dont need on your team. If they do, then they are just trying to play middle man and take more money from you. 

Second, go looking for a local-ish (depending on the size of your city) architecture firm that has experience doing MF. They will help figure out exactly what you can build there. Its clear that you don't understand the zoning code well enough to properly determine what you can build on your lot. Dont take that as an insult, zoning codes can be very difficult to understand. They can do a feasibility study for your site to help you determine your options for a small fee, before you actually pay for designs and construction documents.

Third, do not think that just because the zoning says you can have a max number of units per sf or per acre that your site can max that out. There are dozens of variable that will determine what you can fit on the site. At 8,000 sf I would think you could get only 3-4 units on there....and thats pushing it. This is why an architect will be able to help you understand and determine what you can fit. then you can run numbers and see if anything is worth building. 

 This is great advice, thank you! However, contacting an architect was our first step. The architect we spoke to advised us to work with a planner to get a design so that he would have something to work with.

Nonetheless, I will definitely take on your recommendation and start by reaching out to at least two other architects.

Thank you for your time and feedback! 

Quote from @Chris Seveney:

@Jesse Lopez

If zoning is one unit per 1500/sf and you only have 8,000 sf how can you build 8 units? You could get away with 4 (doubt 5 would work because of stacking).

I would hire a planner / architect first to get through schematic design and review with local jurisdiction as well as start to get estimates for construction as it may be cost prohibitive to build.

Also make sure you have all utilities (and sized properly) to property as that could be a significant cost as well.

 Yes, we are currently working with planners to get an expert opinion of what can be built on the piece of land. I also agree with your suggestion about the utilities. I anticipate this portion of the project will require a good portion of the investment.

Thank you for your time and feedback.

Quote from @Bjorn Ahlblad:

"1 dwelling unit for each 1500 sq ft" of what exactly? If it is land then your max is 5 units. With all due respect 8000 sq ft is a postage stamp. You need a parking lot, a driveway, space for your building, set backs etc. Whether you get a bank loan or not you'll need a healthy down payment for a construction loan. This is a sizable undertaking and if you have not done this before, well what could possibly go wrong? Good thing is you have @Bruce Woodruff attention he can probably save you a lot of grief. I wish you all the best!

Yes, you're absolutely right, 8K SqFt is not much, and 5 units seem more realistic. For this reason, I think we can maximize on building up to increase the number of units. As for the construction loan, I'm hoping we can use the entire land as collateral. Last I checked, it was worth over $500K. 

Thank you for your time and feedback.

Quote from @Bruce Woodruff:

A few questions: 

Is your 'planner' going to do the drawings then? I don't see that mentioned

And what about engineering?

What is your estimated total cost as of now? 

How long will it take to recover that?

 Good day Bruce,

Thank you for your feedback. To answer your questions:

1. Yes. The drawings are part of the fees charged by the design planner.

2. Engineering will be an additional expense. Of course, the designer has offered to hire his contacts but coming from a civil engineering background, I wish to take on some of the minor interior construction and HVAC systems. For liability reasons, I will seek to contract the plumbing, electrical & fire suppression.

3. & 4. I currently don't have that information (I'm currently stationed overseas, and my brothers are doing most of the research). I will touch bases with them to see what those numbers look like and share them here.

What do you think so far?

Good evening everyone,

My two eldest siblings and I are thinking of joining forces to capitalize on approximately 8K sqft of land behind our mother's home. We've talked about doing something with it for years, but our distinct lives have postponed any actions until now. I understand that engaging in business with family often leads to conflict; however, we've all agreed to abide by legal protocols for the sake of any future misfortunes.

Due to a recent property sale, I hold the most revenue to initiate the process. However, I've recommended that we pursue a bank loan to fund the project and keep my reserves readily available ($250K) in case of an emergency. My brother has contacted a designed planner and received a quote for $35K that covers the planner's fees, property layouts, and some permits. The planner mentioned that his services would also bypass the need for an architect. Other research conducted: our zoning allows us to build 1 dwelling unit for each 1500K sqft.

I've convinced my siblings that a two-story quadruple apartment is our best option (total 8 units). This half of the land will have its own utility connections and its own entrance from a street behind our property. We estimate rent per unit would range between $1,500 - $2,100 (we're currently looking to work with a realtor for a more accurate number). Of course, there are many more details to cover, but just to give you an idea of our intentions, what are some of y'alls thoughts?

Please let me know if there is any information that I can add. Likewise, any mentorship/advice/guidance/criticism is greatly welcomed and appreciated.

Thank you for your time.

Jesse
  

Quote from @Joe Garretson:

The options are pretty limited for any sort of return right now. Depending on your risk tolerance, you can park most of it in a savings account which will net you tens of pennies for your timeframe. There are a couple of riskier options that maybe you play with... Donut app is one that "guarantees" you high returns for investing with them. They offer anywhere from 4% to 10% and it's supposed to be safe, not guaranteed. I've got a few dollars with them and just this morning, they bumped the savings rate from 4% to 9% for the next five days. Might be worth throwing a few grand at it to see what happens. 

You could always put it on black and see what happens? YOLO right? (I'm totally kidding, worst advice ever)

Hello Mr. Garretson,

I find myself in the situation. Last September, I sold my home and profited 300%. Now, I need to put this money to work until summer 2023. I will look into the donut app. I’ve never heard of this. If I understood your comment correctly, one would deposit cash with this firm and they will automatically manage it for you, providing you with the highest interest available at the time? 
how satisfied are you with this service?

jesse l.