All Forum Posts by: Jonathan Orr

Hi BP, looking to speak with someone (architect, developer, contractor, broker/agent).  I have a mixed use development in the East Valley that was brought to me.  I have not developed MF in Phoenix Arizona so looking to get some feedback on if I am on the right track for costing. I want to get a better idea on if I am over estimating since I primarily work in CA with some ridiculous Construction numbers
This is very early in the project so just looking for proforma numbers, nothing concrete.
Project description:
Flat lot
Units 250-300 units (multiple buildings) (~230,000 sq ft in total)
Type V construction 3 story walk up
Surface parked with some covered parking
Utilities stubbed to property line
Flat roof
Some amenities (pool, clubhouse, etc...)

For hard construction only I am estimating around $135/SF
Roughly $200k for site work

Any help is appreciated.

Hi BP, I have been toying with a simple pitch deck for a new company I am starting. The business will focus on entitlement and development of commercial properties in the Western US.  The main part of this Pitch Deck is to provide a synopsis of the company and what we intend to accomplish.  Additionally it will be a tool used to present to potential investors/partners for raising capital.  This is not property specific, but rather intended to present to investors describing what we do and will have follow up pitch decks on specific deals.  Would love constructive thoughts on what to add or delete or potential changes, link is below to the pitch deck.  I appreciate all of your help and hope everyone is staying safe during this treacherous time

https://docs.google.com/presen...

@Account Closed we had settled and filed a 2nd trust deed against a property and had it recorded so it’s set in stone until it is paid off. They have kept up with payments to both the 2nd and the 1st, so no foreclosure right now. 2nd is in place so if it ever comes up and a payment isn’t met we have it covered

I appreciate your input @Don Konipol.  In the conversation I was having with the other gentlemen, it wasn't necessarily centered around a discounted price (even though that is a huge potential benefit of finding an off market property).  I was more based on location.  For what I am focusing on in commercial development, land price is of course important, but location makes or breaks the deal no matter how cheap the land is.  Looking for infill properties or potential adaptive reuse or tear down and redevelopment in major MSAs.  That is the side we were focusing on in the discussion. 

I have never done the bankruptcy courts and have little experience with auctions as I find that most land at auctions are farm land or not in desirable areas. I have found that referrals are a strong way to find properties now. For example, a general contractor put me in touch with a person who has excess land next to their church. They are not real estate people so they didn't know what to do with the land but were interested in generating a profit with the vacant space. We are looking at a potential purchase or JV.

Again, thank you for your feedback!

Hey BP, I am looking at doing a pitch deck for my company. Have never done one but would focus in commercial real estate development. Anyone have one they would be willing to share? Looking to bounce and compare some ideas I have to put one together. Any help is appreciated, this is new for me.

Was having a discussion with a gentlemen the other day and we got on the topic of “finding off market deals”. Of course everyone and their mother has their own way and I don’t think there is a wrong way. However, it got me thinking about the lack of teaching or education there is out there about how to truly find deals. I am in the development sector so I focus on finding land (mostly held by companies rather than individuals). I wanted to post on here and see, has anyone has had a course or a worth while book on how to find off market deals? Since I’m not an agent or broker, how do they source deals to list on the open market?

I realize every investor/mentor selling their program has a tid bit in their “course” about how they do it. However, from the ones I have personally seen they usually just say “talk to people” which I think is the most obvious thing in the world to hear. It doesn’t actually teach you how to do it or what to say, besides “I would like to buy your property”.

Maybe I’m over thinking this concept because I usually just go in public records and reach out to companies or the occasional individual and introduce myself and flat out ask.

I just wanted to throw it out there.... have you been taught to do something that they find success in, or read a book or taken a class?

If you can find in your heart to give away your “secret” would love to get others viewpoints or tips.

Hey BP, looking at a few development sites in Austin TX.  Have a good understanding of construction pricing for the west coast, but want to see if anyone has opinions on what they are seeing for construction cost for multi family (3-5 story type 5, no podium).  Can be either $/SF, per unit or total.  Yes, I realize it is property and design specific, just want to make sure I am in the ball park for early underwriting.  Doesn't have to include soft cost or any design cost.
Any info is helpful. Thanks!

Hi BP,  I know a property owner that wants to sell a property.  It is not on the market but I have an investor who is interested in purchasing it.  To make it easier on both parties, I would simply make the introduction and if they go under contract I will set up a referral fee with the property owner to pay me for the introduction.  I wanted to know if anyone has a finders fee agreement they like to use that covers all the bases?  This is not a wholesale or an assignment.  This would simply be an introduction and I will get out of the way.  Any templates you would be willing to share?
Additionally, I wanted to find out, can I get paid out of escrow?  Or do I need to be paid separately since I will not be using my Real Estate License for the transaction?  Any help is appreciated!

@Brian Ciuchta I am working on several ground up deals that are exactly what you are discussing.  The hard point with an adaptive reuse is when you need to incorporate the appropriate staff for the extended stay hotel angle you need the property setup (reservation desk, offices, etc...), additionally there is a marketing aspect to target the people who would be utilizing the short term stay yet longer than you would with a traditional extended stay hotel.  We are finding it easier to target land and build from the ground up with a brand who has perfected the model and are killing it.

@Jason Giroir I can feel your pain. I have clients that are adamant for investing where they live (Southern California). The issue is the deals that they are looking at are so compressed when it comes to CAP rates that if you take on any debt it turns the deal upside down. For example, I was brought a 5 unit deal in LA county at a 3.75 CAP. The Cap rates in the Urban areas are gearing more towards funds, REITS and major companies that are purchasing them with Cash because they don't need to see a major return, they are virtually just parking their cash.

I would recommend expanding your circle of where you want to acquire properties.  With technology now it is becoming easier to acquire properties farther away and having a solid team to run the day to day.  

Good luck in your search!