All Forum Posts by: Johnny McKeon

whoa! that's crazy fast. what lender did you use for your VA homa loan?

I'm also looking to purchase a primary in San Diego County and would like to get pre-approved with someone who knows the VA loan very well

@Barry Ruby hey Barry! oh you Betcha! it's very Daunting. just like what @Rylan Lacey was saying. The rehab game is easier. if I buy an existing apartment building i have tenants paying rent that helps service the debt while I reposition the property vs development there's no income and lots of time and unknowns and unexpected costs can happen but the higher barrier to entry may make it more profitable.

What type of developments do you like to do?

@Rylan Lacey are you working on any development projects in Arizona at the moment? it would be cool to hear what you are working on or learn about your past projects

I agree. I've had a few GC's not respond and the one that did took awhile to get back with me. and I keep hearing the same prices to build. but I've heard $150 to $250 per sq ft. not sure what's accurate.

I'm honestly not sure if my current resources will be enough but Currently, I have a lil over $500k liquid and available for this development. credit scores are high 700's. and some lenders have said they can also use the land as equity. I also have 22 apt units to potentially cross-collateralize 

And yes  I don't have ground up construction experience. however, that's why I've reached out and would like to use the same team that built the 10 unit across the street from me. Architect and GC etc. I could leverage their experience dealing with the city and they know the challenges that lay ahead & help carry this project to completion.

and I totally agree the rehab game is easier and there are so many unknowns with development but it is a great skill to learn especially where we are at in the market cycle.

@Harish Nandipati I would definitely like to hear about your development projects you're working on. When you develop, do you then sell or do you hold on to your assets?

It takes a lot of time to find & fix property and I don't want to sell. I want to build a portfolio of multifamily properties

Survey has been ordered for both parcels ( 6unit and 0.98 acres) and will be done on September 27th, 2021. My architect said once the ALTA, Boundary, Topographic survey is done he can do a site plan and then we can submit to the city.

and I have had some talks with local lenders. Unison bank said they can do 75% LTC (loan to cost), rates are in the 4's and they have construction to permanent loans where it automatically converts and that they can use the land as equity for my down payment and I spoke with another lender called Bradford about HUD 221 (D) (4) construction loan that can go up to 85% LTC and is amortized over 40yrs but I don't believe this project will have a large enough loan amount to qualify

Thank you so much for the dose of reality about how many units can actually get built. Thank you for the detailed response

I got ahold of & spoke with the GC (General Contractor) that built a 10-unit across the street from me and he said he can't really give me an exact estimate because i don't have any blue prints yet. but he did say it cost them roughly $1.6mil to build the 10 unit across the street from me and that he thinks it will be more expensive because labor and materials cost more and some unexpected costs came up on their projectlike the water company wanting a bigger water pipe installed for better flow for fire suppression I believe.

1. How early do you get an estimate for your soft costs and hard costs? and do you get all that from your GC?

Great bonus tip! how do you not lose property line to road allowances?

@Brian Armstrong Great advice about contacting the owner & GC (general contractor)! I reached out to the 10 unit and was able to get the property owner, GC & Architects number in october 2020 when I purchased this off-market seller financed 6 unit and 0.98 acres. I was just focused on repositioning the 6unit to bring the value up that I put a hold on looking into development

a couple months ago i reached out to The architect & he wants me to get an ALTA & Topographic, boundary survey. i was driving by another development & found a survey company. soonest they can come out is end of September 

I also reached out to the GC but he hasn't replied. I'll reach out again & I need to reach out to the owner.

thxs for explaining soft costs. the architect I'm using worked on the 10 unit across the street from me & gave me some estimated costs

Hey BP 👋

I have 0.98 acres zoned for multi family in Apache Junction, AZ.
the city says up to 22 units on 1-acre can be built. i also own the adjacent 6-unit apartment building. One of the Principal Planners for the city said I could possibly combine the 2 parcels to get over 1 acre.

also, a local owner just Built a 10-unit apartment building across the street from me so that's a good sign.

I want to develop apartments but

1. Where do I even begin and start?

2. who do I go to 1st? An architect or a general contractor? or someone else?

I don't even know if this is financially feasible to develop.

3. How or who can I get a rough idea of what My total All-in costs will be?

my experience is buying existing apartment buildings and adding value thru renovations .
If you need me to clarify any questions let me know

Thank you for the help & guidance! i really appreciate it 🙏

Hey BP 👋

 I have 0.98 acres zoned for multi family in Apache Junction, AZ.
the city says up to 22 units on 1-acre can be built. i also own the adjacent 6-unit apartment building. One of the Principal Planners for the city said I could possibly combine the 2 parcels to get over 1 acre.

also, a local owner just Built a 10-unit apartment building across the street from me so that's a good sign.

I want to develop apartments but

Where do I even begin and start? 

who do I go to 1st? An architect or a general contractor? or someone else?

I don't even know if this is financially feasible to develop. 

How or who can I get a rough idea of what  My total All-in costs will be?

my experience is buying existing apartment buildings and adding value thru renovations .
 If you need me to clarify any questions let me know 

Thank you for the help & guidance! i really appreciate it 🙏

i really want to hear an update on this property!!