All Forum Posts by: Jon Klaus

@Daniel Crisp I sent you a colleague request.

@Daniel Crisp

Hey Daniel, welcome to BP. I’m also working on some subdivisions in Hunt County. We’re also seeing housing demand beyond what the market can supply. We should connect and compare notes.

@Kat Hussey

Planning and zoning

 https://www.ci.greenville.tx.us/427/Planning-Zoning

@Val Rodriguez Really hard to say what it’s worth from the information given, but it is pretty intriguing.

My first question is how large is the lot? Are there other properties adjacent that could be assembled? If the lot is big enough to develop for a commercial project, you really might have something there.

Is the current zoning residential?. If so, and the lot is big enough to put something like a QSR on it, you might buy it, rent it out as is, and work toward rezoning.

Even if you just keep it as a rental, busy (commercial) corners have a way of paying off in the future, even if you’re not sure what that future will be.

@Gloria C. Presumably your buyer cannot get bank financing, so your terms do not need to compete with the bank. I might start with something like 25% down, 7% interest, balloon in three years. The idea being, that your buyer would refinance before that time, and you would be paid off.

If you come to a deal, it’s a good idea for an attorney to prepare the note and deed, and consider getting a third party loan servicer to handle payments and reporting.

I recently sold land on a note where the buyer put down 50%, and is making double payments. 

There are lots of good ideas in this thread.  As to small multi-family possibly not appreciating as much as single family, consider an exit plan of converting units to condos, so they can be sold individually.  A few hundred dollars of attorneys’ fees could net many thousands.

Check with local and regional banks, also credit unions.  You may also have a county land bank that specializes in land, farm, and ranch lending.  Also, ask for seller financing. Sometimes the seller needs income with a good guaranteed rate, even more than they need cash.

@Akiva May I sold one of my Greenville homes on 12 acres earlier this year before COVID-19. I currently have three Greenville properties under contract to sell now. Also looking to buy, but more carefully. My primary agent says she can hardly keep up, but closings are being postponed. I can’t say that I’ve seen closing prices decrease yet, but I am seeing more back on market, and asking prices reduced.

As far as 100 units plus, there are only a handful in town. What is your criteria beyond size?

On the other hand, $800 per month per apartment seems pretty low for new construction in DFW.  Maybe bump up the land price a bit, and go for $1.50 per square foot rent per month.  Where are you planning to build this project? 

@Lane Kawaoka. Greenville, TX?