All Forum Posts by: Josh Cochran

Looking to build a REIT, $200-300M AUM after 3 years.

Looking for contacts to support in this, eg Coach/legal. Thanks.

@Jerard Graham

I like to check for:

- water

- sewer

- sidewalks

- how level is the land

- how much rock will I need to move

- does the seller have a previous geotech I can look at

- easements

@Chris Cusiter

Everything Michael and Greg said above.

I usually pay 0.5% when I request offers from 2-3 banks and let each know I will be doing so. No broker. Just regional banks.

Greg, thank you for your concise and organized expertise!

If you'd like to dive in deeper, read below.  I'm an open book!


1. Numbers

+ CoC return on the development is looking like 10.5%-14.5% once stabilized

+ Owner equity required: $1.2-1.3MM (My contractor would like to contribute their 7% construction fee + equity to get to 25% owner)

+ I purchased the land outright $600k value

.

2. Goals

+ Develop relatively-passive long term wealth

+ Gain experience to replicate deal

+ Create 2 additional streams of cash flow: NNN & Developer

+ This development will be another location for our my primary income stream a dental group partnership in which I am the sole "managing" partner

.

3. My Cash Position

+ Capital I have available to deploy - $700k+ ($600k of this has recent LT capital gains, so I am considering setting up the Opportunity Zone)

A.

How does one determine the best strategy once we’re fully leased up:

1. Hold 2. Cash-out-refi and hold 3. Sell

4. Other

B.

Not sure if I should create a fund of investors to increase my CoC, or just fund it myself. This development is in a hot area, that also happens to be an Opportunity Zone

Appreciate your advice if you can spare the time. Thanks!

I am developing some land into a retail commercial building of $19,000SF. I am considering selling chunks as "commercial condos."

What/who are some good resources so I can learn how to do this?  Thanks!

I’m looking to invest Ryan in realitively liquid fund, while I look for next real estate deal.

Right now I keep “dry powder” money in bonds and I’m looking for better options 

Thank you Saravanan!

Do you know a range of how much of that money the hard money lender typically keeps vs how much they pass on to their investors?

What are the current hard money lending rates?

What percentage returns do hard money lenders usually take before they distribute back to their investors?

Thanks in advance!

@Jay Hinrichs - Thank you for the advice Jay!

@Melissa Murphy - Thanks MM!  I know those guys well.  I think I will reach out to Jeff and Tyler.  Brent was the foreman on my first buildout... small world.

@Joel Owens - Thank you for the excellent advice and wake up call Joel.  I'll start working on pre-leasing with forward commitments; I appreciate the clarity there.  Contractor will help me develop irregardless, they are some of the best people I know.  True win/win folks.  And, I think I'll bring them in as partners to sub-consciously align incentives. Glad to know I'm getting 6 figure value there, makes me appreciate them even more.