All Forum Posts by: Keith Bloemendaal

Latest update, I have 4th lot under contract and moved my new home listing to that lot, was hoping to close Friday, but looking more like Monday or Tuesday, I heard a rumor that the seller raised prices on lots $7500 the day after I put my 4th lot under contract. So that makes me feel better that we ended up with the 4th lot. 

I have my permits submitted and my clearing crew set to clear lot next week. Will post another update after I close on the lot. 

 I talked to the seller, he agreed to extend the due diligence. The potential wetland thing is kinda confusing, but now that the seller is aware, he will need to fix it. 

Disaster averted today. I am supposed to be closing at 1pm this Friday on the lots, and have scheduled excavator and crew to clear the lots starting next Monday, so I decided to get my building permits submitted this morning, and while I was there I also filled out the clearing/grading permit application, which is really just a formality with no fee, just to let them know you are clearing. 

I hadn't even left the building before getting a call from the head planner informing me the lots I was applying to clear were located in a "potential" wetland. He informed me I could call a private environmental consultant who could have it verified and mitigated or approved from the Army Corps of Engineering. 

I then called the consultant, he informed me it could take up to 2 mos to get the Corps to approve it. Obviously that wasn't what I wanted to hear. 

Next I called my partner who lives out of town and informed him of the hiccup. I told him rather than buy these lots and be held up, I wanted to approach the seller and amend the contract to 3 lots outside of this potential wetland, that way we could still get started right away and only be held up an extra week. 

Everyone agreed on that and my partner is heading down tomorrow to walk some lots with me. 

Many phone calls later, the environmental consultant is meeting me in the morning and after looking at the aerials and topography he believes he can get the Corps to approve, but it still may take a month or longer. 

I had an idea after this call, what if we get the seller to extend the due diligence period for 30 more days so I can keep these lots under contract and just purchase one other lot that is verified not in the wetland area. My partner agreed to purchase 3 lots cash, but when we set up the construction loan we realized the bank would take that lot down anyway so we would be left with 2 lots paid for, why not buy one lot under the construction loan by itself, then buy these three when the wet issue resolves, giving us 4 lots. 

The other part of this is that the seller has been pretty clear that prices are going up after the "family meeting" which typically happens after the first of the year, given our market, I'd say at least $10k increase, and possibly $20k. This way, I keep my 3 lots locked in at current price, and get another one at current price, saving me at least $10k later. 

Anyway, I need a bourbon after this long day, I'll update more tomorrow after my meetings.  

If I am not mistaken, the regular forums are not for trying to sell your deals, please try the Marketplace: http://www.biggerpockets.com/forums/517-real-estate-marketplace

I just purchased 3 lots (we close on Friday) without an agent, of course I am listing the new homes with my agent that I am building on them, same deal cash purchase. I am also closing on my construction loan at the same time using same closing attorney, who I happen to have used many times over the previous few years. 

Ok, after getting the closing attorney everything she needed, we now have a closing date of 1-9-15, next Friday. 

I have everything I need to submit permit and will likely submit Monday, that should get me my permit about 1 week after I close, which works fine since I will need to clear and grade and can form the slab before permit is issued.

I received my plot with some mistakes so I sent it back with comments (always double check setbacks and measurements). Final plot is below. 

So far, it's a good start to 2015! I will pot when I get the permit submitted Monday just for documentation purposes.  

 The lots are developed by the city and one family owns most of them, I just go to them when I am ready and make offers. So, yes, the infrastructure is there and I just buy, survey, and clear. 

Always Double Check Your Plot Plans

Below is a screenshot of my plot I received yesterday. I ALWAYS double check them, and I have used this same surveyor for over 150 properties, but anyone can make mistakes. 

My lot(s) I just purchased allow for setbacks of:

Front: 20'

Rear: 10'

Sides 7.5'

These lots are small, so I always move the structure as far forward as possible to give more backyard. He placed my home at 25' setback which only left ~17' back yard, moving 5' forward may not sound like much, but it is, not only does it open the back yard up, it saves me 5' of dbl driveway concrete costs. 

I sent this back with my comments and should receive back today. 

Putting this together to submit for permit hopefully this week. 

I have used Bigger Pockets as a major part of being mentored, along with some financial experts, bankers, builders, and investors I have networked with locally. 

@Jay Hinrichs that really is a shame, who knows what could happen in 1-2yrs with the market? I'm scared of 6-12 mos! LOL