All Forum Posts by: Jonathan Orr

Hi BP, have an opportunity to acquire a retail asset and  attached parking lot.  In the investigation I have determined that because of the area, the parking lot can be a source of revenue.  However, I have never underwritten a parking lot before.  The lot does not currently produce any income so I don't know what to base it off of.  In talking with a friend he mentioned that it may be hard to get realistic numbers for comparable in the area because some may not have the best reporting of financials.  Just wondering if anyone has experience in it and where should I start?  Site is located in a beach city in southern california.

Hi BP, I am looking to speak with someone offline in detail about wrapping my head around industrial tilt up construction costs.  Been approached with some opportunities, yet very new when it comes to industrial/flex space and most General Contractors I work with are focused in other asset classes.  Projects would be in Inland Empire/Orange County CA as well as potentially out of state in AZ, ID or UT.  I wanted to know if anyone is willing to talk and help educate me on the general costs associated with constructing approx 50-75k sq ft industrial tilt up that can be partitioned into suites.  Thank you!

Hey BP Community!

I wanted to reach out and see if anyone had feedback or experience with cinder block construction vs concrete tilt up?  Looking at the possibility of using cinder block for small flex/industrial developments but hard to find consistent information regarding pricing, time to complete or anything else I may need.  Just looking for some basic info.  If anyone has an opinion on it for construction and development would love your feedback.  Would be dong something like 13 ft ceilings and only about 45k sq ft in total.

Do you see a significant cost savings?  I realize it will depend on location but any experience from a developer or General Contractor would help.  Thanks.

@Stephen Holmes very interesting and being from Long Beach myself would love a group focused more on the commercial/MF side.

Being a developer and coming for a commercial multi family investment side, I have searched high and low for commercial minded people when a majority want to remain in SFR. Definitely keep me updated

@Jaysen Medhurst specifically commercial properties that are owned/ taken back by a bank or financial institution

@Jaysen Medhurst sorry for the lack of description. Looking to REO properties specifically

Originally posted by @Michael Schumpert:

@Jonathan Orr

Yeah, that's what I've been gathering from my research. Quite a few niches on the development side, and many different avenues for each! I think I'm leaning toward land packaging to start my development career. I just don't know how to value the potential exit to make sure the project is feasible. 

Do you have any suggestions on books or classes? (preferably affordable) I'm able to invest in my education, but some of the courses and established masterminds I've seen have been $10k+ 

what about you, are you interested in a mastermind group? or speaking to one if I get one started?

 Land Packaging or "Horizontal Development" as I like to call it can be very successful.  However, it depends on how far you take the development.  If you are just buying a raw piece of property but not going all the way through the entitlement process it is tougher to sell (not impossible but limits your buyer pool).  I have a partner who did that prior to taking deals vertical.  I actually just finished horizontal development and exited just because the entitlement took so and we received offers on the entitled project.  How we find the "end pricing" is you take all of your cost...land purchase, architects, city fees, etc. Then add a percentage bump of what you need or if there are comps that you can find locally that fit a similar end product. It is really market dependent, sometime you can make a good amount because it is a growing market, or if it is a heavy entitlement process you may have to slim down your margin because you need to keep in mind that the end buyer will need to take the land cost plus construction and will work backwards to see if it meets their investment needs.

I am definitely open to a mastermind,  I will be honest, I am still young in my career and don't know if speaking to people that would have a great deal more experience than me be effective, but always great to network with others in the industry. 

PM me if you have more questions.

Hey BP. I was speaking with a partner/friend and got on the subject of

Bank Owned properties. I have never gone the route of trying to nail

down bank owned properties (specifically related to commercial).

However, I wanted to see if someone had insight on how to go about it or

thing I can do to possibly get into Commercial Bank owned deals. Any

insight helps. Thanks!

Hey BP.  I was speaking with a partner/friend and got on the subject of Bank Owned properties.  I have never gone the route of trying to nail down bank owned properties (specifically related to commercial).  However, I wanted to see if someone had insight on how to go about it or thing I can do to possibly get into Commercial Bank owned deals.  Any insight helps. Thanks!

@Michael Schumpert Development is a tough subject to pin down.  Realistically, myself and the people I learned a majority of stuff went down a similar path...Just have to get into it and learn.  I joke with people all the time that development can't be taught in a class or a book (even though there are some really good and informative books and classes out there).  There is no cookie cutter equation and each and every project will be different.  However, masterminds and networking with other developers is always a plus.  I actually learned a great deal more from talking with other developers who have MUCH more experience than I do.