All Forum Posts by: Justin Frank

Hey everyone, we are looking to get into development over these next few years and we are hoping to get some insight on how someone with some development experience underwrites their project. We have our eyes on a few different parcels. One is a 10acre and the other is a 12 acre parcel allowing 4 homes/1acre. Is anyone willing to share their process for determining whether the project would be a go or no go? What are the upfront steps you consider (set backs, zoning, permitting, development costs, price per parcel post development?) Thank you ahead of time to anyone who is willing to share. 

Justin 

@Adrian Fajardo, @Account Closed was very helpful and great to talk to. She is a perfect example of the type of individuals in the Think MF group. If you ever decide to join, I would head their way. Don't think you can go wrong with them. With that being said, make sure you have time to be active. You aren't paying them to do the work =)

@Adrian Fajardo, I know exactly where Lynnwood is. Where are you now?

Think multi family is an awesome group. Since this summer They have probably sent out at least 10 different offerings  for units they are acquiring. They are moving fast

Hi @Adrian Fajardo, 

I actually ended up taking a bit of a different route. I didn't end up joining the any of the most familiar groups out there. I found Ellis Hammond who started a Christian mastermind group called the Kingdom Capitalist. I still speak with the individuals from Kingdom Capitalists monthly. There are so many great people in the group and I have recently started a fund management company with a few of the individuals from the group. We realized that we had great relationships with so many professional operators in MHPs, Storage and MF. These individuals were finding more deals then they had money, so we decided to partner with these world class operators to raise capital and fund the great projects they were producing. We are at the early stages but the future is promising and bright. I was very close to joining the Think MF group. After all of the research I did, Think MF outshined everyone. Mark Kinney is actually a member of Kingdom Capitalist so I am not too far removed from their group. They are doing a ton of deals. I would highly recommend them if you are interested in joining a mentorship group. 

@Casey Walker santos

I think this is absolutely enough to get started. We just bought a home in PA for $17k and will put around $35k into rehab. After finished we will be around 40% of ARV. Can flip it or keep it as a rental.
You could consider investing $50k passively, or you could partner with someone on a project. 
Though $50k is not a lot of money when you compare it to most RE projects, it is much more than most will ever have saved so you are off to a good start. You just need to be creative

@Kirsten Crotts,

Cash flowing SFRs in Washington state is pretty difficult to find. Deals are out there. They are just tough to find. Our real estate prices are so darn high and though our rents are higher than a lot of other areas of the nation, they just aren't high enough to cash flow well unless you find yourself something way undervalued. BRRRR is such a great strategy. I would look around Thurston and Lewis county. They have a bit lower price point than King and Pierce county. Centralia area is growing quickly and home prices have been run up over the last few years but there is still some good potential in the area.

@Taj Richardson

Than you for your post. That is a great description of the market along the coast. 

@Weijia Yu

I agree with everyone else. The 1% rule here is very very difficult. Not impossible, but difficult. You will have to sort through a lot of properties before you find something that meets the 1% rule. It also really depends on the market you are searching in. Go to Aberdeen, Raymond, or some other small market and you will have better luck. The problem you will run into in these locations is lack of job growth, population growth and higher likelihood of poor tenant quality. If you are looking to invest in King, Pierce, Thurston, Snohomish, or evening Lewis county you will struggle to find a home that fits the 1% rule. If you do, it’s like finding gold. People are doing it though. In Washington Rents are high but home prices are just sky high so they don’t match up well. Don’t give up though. Keep at it. 

Hi @Rebecca Pike,

My mother lives in Lincoln city so we visit there often and each time I go I think about buying in the area. The tourist population has grown immensely in that area. The problem is that the general day to day population has not grown much. Vacation rentals on the waterfront will kill it but trying to get your hands on one of those for less that $800k is nearly impossible. It's a weird market. Just not a great economy besides for tourists coming in. If I could find a BRRRR property on the waterfront somewhere between Lincoln city and Waldport, I would be a buyer. Haven't done a ton of research as of yet, haven't spoke to any realtors, and I doubt there would be any wholesalers targeting such a small area. With that beings said, it may be a great area to start your own marketing campaign. This is all my personal opinion. Of course others may differ.

@Nick Swan,

Welcome to BP. Lots to learn, and lots of different ways to travel. It will never end.