All Forum Posts by: Julie Nealey

 I would also question the 5% on a private money loan. If it sounds too good to be true... and not consistent with the market, I wouldn't risk it. 

This is very interesting to hear, as I own vacant mixed use land I got entitlements for (an owner occupied development) just prior to covid and the shutdown. My site was a "problem" site that I bought for a good price back in 2019 and spent about 1million to get it developable. Coming out of Covid my cost to build over doubled. I changed the trajectory and paid to have the site redetermined, wetland set backs reduced, and went from 1.18acres buildable to 2.27acres buildable. The location is highly sought after in a higher socioeconomic demographic with great frontage along a state route. I even paid to have a site plan redeveloped and got it pre-app approved( I was going to partner with a developer to develop it multifamily/mixed use with great ROI) Circumstances changed my trajectory and I put it on the market about a month ago. All the developers that contact me want to go strictly residential or multi-family, not mixed use. The city said that they would fast forward my new mixed use site plan, to be shovel ready in 6-8months because I have entitlements already and have done all the legwork. I even partially cleared and graded for my old owner occupied site development, so there isn't as much site work to be done. Even my storm water didn't change substantially with the new plan. Most of the developers say that I need to come down 500-700K on asking price. What are your thoughts? Any advice you could provide from a developer perspective? I am in WA state, just north of Seattle. Thanks in advance.

Would there be any benefit to purchasing land for a development project with great ROI in this market, or is the uncertainty of the market a negative?

I see one year feasibility and a year to construct and build, roughly two years to allow the market to rebound. Does that leave too much unknown? Thanks 

This land already has surveys and environmental completed, partially grated and cleared for mixed use site plan 50/50 

Many uses including apartments, medical, assisted living, daycare, retail, stacked condos/condos, restaurant/brewery, townhomes, senior living.

Excellent frontage on major SR at a very high traffic area in a high end demographic area.

Off Market until 6/14/2022 then we will go on market

4 million 

Quote from @Eli M.:

Dear BP family, 

What reliable and inexpensive construction websites can you recommend to buy construction materials ?

I am looking to save some $$$ and not to overpay in the Home Depot and Lowes...

Thank you all in advance!

Eli M.

Good morning Eli,

I think this would depend on what it was you were needing. For instance, we purchased our 1860sq ft rambler with horizontal siding. The house looked like every other house on the block and I wanted to fix it up without spending a lot, so I shopped Offer Up and Craigslist. The house was small, but I found a lumber mill wanting to off load its clear and lightly knotted tongue and groove cedar siding. I was able to side the entire house for just slightly over $1,000.00. Of course I had to rent a truck and travel 2.5hrs to pick up and load myself, but it was more than worth it. The cedar siding wasn't clear grade, but I liked the variation in texture. 

If you have a RE-Use or Habitat for Humanity, you can find brand new flooring or tile for much less than market. Great for bathrooms, mud rooms etc. You just have to be discerning. You can find great deals on Wayfair and Overstock for little things like faucets and hood ranges, small touches that really add polish and aesthetics without breaking the bank. 

Sorry for the sideways pic

Is it possible to pool enough money to finish a small portion(special purpose to lease to gain capital to pay to complete it), that would compliment your original use? Given you are looking for it to be a wedding venue/corporate event, I am thinking taking approximately 1000-1500 sq ft and have it built out as a catering space, rental commercial kitchen? Bring in a large refrigerator, commercial ovens, etc for 25K and start leasing that portion to a catering company that would directly benefit from your intended use, as well as provide positive financials to a lender... I always try to get creative while viewing the overall "big picture". Maybe bringing in a portable stage, and portable bar for private events and parties. I wish you good luck. Tough position to be in. 

One last question, did you have a 10-20% built into the loan to allow volatility in the market, supply chain issues etc, and if you did, did the GC blow through that? I would have boots on the ground counting every nail, every board to keep the guy honest, but I would have been that way from the beginning, so he would know that I was watching.

 I believe it would really depend on what is in the area already. 1000sq ft is very small (is that the footprint, or the actual square footage?) If it is a small portion of a much larger mixed use area, you could have a hard time having a planning department justify changing your small portion. The process would be to fill out an application, go to the local development and planning department and see what is permitted and what the best use is for the area, go through feasibility as well as a public hearing. It can also be quite expensive, and take a great deal of time. I would really pencil it out and see if it is worth your time and your finances to got through the process. Good luck! 

I have a piece of raw land 50/50 Mixed Use that would be a wonderful site for a Shag Housing Development. Does anyone know a developer that specializes in this type of development?

 Okay, thank you, I was curious if you were into development, but it doesn't sound like it.