All Forum Posts by: Jonathan Orr

Hey BP Community

Looking for Commercial Zoned land with Hotel as a approved use, or hotels for redevelopment. Only looking for properties in California.

If anyone has any leads, would love to talk. Site must be 2ac or larger.

Hey BP Community

Looking for Commercial Zoned land with Hotel as a approved use, or hotels for redevelopment.  Only looking for properties in California.   

If anyone has any leads, would love to talk.  Site must be 2ac or larger. 

@Account Closed you are right, going in with plans is foolish. why spend the money if they wont let you do it. it may have just been that planner, caught them on a bad day. i would set up a meeting with a planner rather than just walking in. if they set time aside rather than at the counter with other things to do they may be open to talking more.  

have you ever done any sort of development before? that may be a turn off for them.  that is why i mentioned partners.

also you mentioned in your original post that it is zoned 3 units.  even though lots may be the same size doesnt mean just because they did it that they will let you.  you should find out when those 10 units were built.  if it was a while ago the city may have been more friendly to developers.

from the limited info you have given, i am assuming it is a R-3.  to up it to 10 would require a zone change,  that is a very long and expensive process.  if it is zoned UP to 10 units then you may have a easier path.

So. Cal can be a real hit or miss when it comes to multi development.  You will find communities that are dense (specifically more towards LA) it becomes harder because multi family development is the most profitable for developers and can be not as profitable to cities when compared to other types of developments.

I think with a tough city like Glendale it would be best to join up with a developer who has experience or someone who has worked with the city in the past.  Also, when going in dry to a city it is best to know as much about the property as possible.  Things such as zoning, density limits, height restrictions, etc are very helpful because it not only shows that you have great interest in the property but you also appear more professional, all of this can be found on the city website.  On the other hand, some planners just don't want to work and may be short with you.

Glendale is a good area and I am sure if you can swing a development it can be profitable.

Don't be afraid to build that team (architects, engineers, developers, GC's) to partner with.  It can help move a project forward and also help you learn more.

Best of Luck!  PM me is you have questions.  I haven't done a deal in Glendale but have development experience in So. Cal.

@Kendra Gedeon sounds like a developer in the making.  Yes @Manolo D. is correct about it being a rough road.  Also can be a long road.  The first thing I would do if I were you is figure out what you want to build so you can tailor your land search around that. No reason in looking at a plot of land that is zoned industrial and you want to build Multi-family.

Once land is identified and your underwriting reaffirms any profit you can make then you will need to get any entitlements and approvals out of the way.  This varies from city to city, with multi-family it may require environmental and traffic studies.  Also architects and engineers will need to get involved up front.

Long story short, development requires capital basically from the word Go.  It is the long time question of do you source capital or the deal first.  However my best advice is to just go and try to do it.  Don't be afraid to build a team of people that have experience that you can learn from and also share profits together on. 

PM me if you ever want to talk more.

@Pat Snyder you technically can't buy it because even in pre-foreclosure the owner that is being foreclosed on still has title.

However, you can approach the person being foreclosed on as try to buy it from them.  

@Brandon Duncan I would definitely set up a LLC. You can determine with an attorney who will be the managing partner of that LLC but it will give you protection in case something goes sideways. For instance if you place properties in a LLC and for example if a tenant sues you for some reason it will give you a layer of protection.

Also when you set up a LLC with an attorney you can spell out all of the equity and ownership percentages so when tax time comes it will be easy for your accountant to hand out K-1 to those involved.

@Spence Rodman if you are planning on building a new home I would try and keep the slab if at all possible.  If it is in good condition (talk to your architect and engineer) then use it.  You can always add on to it if you need a bigger footprint.

Plus that can fast forward your construction and I think it will be cheaper to use it rather than tear it out.

@Elijah Lytle with the auction you can pick up some good deals.  The catch to those is most of those go site unseen, meaning that you typically cant get into the property until you buy it.  This can be issues if you have a certain rehab budget in mind and then find out it will need much much more.  The best is to find a bunch of homes that you know the auction date and can do as much due diligence as possible prior to the auction date.  Try and see what you will do to the property and how much you will sell it for.  Make sure your estimated numbers are for a worst case scenario so if something does go sideways you are prepared.

The auctions typically require cash buyers meaning you write a check right then and there, I don't know about AZ but some auctions require a down payment in cash and then you have a few days to get a loan or some may require pay in full.  So you will need the cash or have a lender ready to lend upon purchase to front that cash.

Hope my 2 cents help.  Good Luck!

@William Toomey are you looking for someone to rep you to find deals? Or an agent for a specific property?

In my experience in multi investing, if you can find the deal and know what to look for it is best to have the listing agent that is selling the property handle the entire transaction.  If an agent has an opportunity to double end a deal they will work more with you because their profit is high and they will also be willing to help a bit.  On the other side of that, you must know what you are looking for in your Due Diligence and research for finding and buying a property.

Also, what you could do is get your license for the area you are looking to buy in.  That way you are your own agent for a deal.

If you do need an agent just to find deals you can go on loopnet.com that has commercial and multi family listings.  You can go on there to see who is listing in the area you are interested in, and then reach out saying you are looking for a buyers agent.  By just telling them that, their ears will perk up and most likely want to help you.