All Forum Posts by: Kenny Simpson

Anybody have experience with this company? Specifically for 1031? They want to list my property themselves in order to assist with the exchange process, this is the first I've heard of a company doing that so I'm curious to hear what everyone's thoughts are.

https://www.biggerpockets.com/blog/2024-rental-market-foreca...

Since July of 2023, rents seemed to have topped for the time being.  More units coming online, and more people sharing spaces due to a lack of affordability.  We have had to cut rent for new units 8% from the previous lease.  This could be seasonality.  We saw rents go up 50% between Mid 2020 - 2023, at some points rents will revert to a long-term mean graph.

Hey BP Family, I hope everyone is doing wonderful! So I have a question, I currently have a home listed for sale in the Hillcrest Neighborhood in San Diego, CA zoned RM 3-9. All of the records and paperwork as well as incentives like the Complete Communities project which assists with city funding for developments for low-income housing and the Transit priority areas not needing parking, indicate that the home should be buildable up to 36 units, so I priced it at $1.2M. However, it is just slightly above a 3,000 sqft lot with a max structure height of 60ft and no alley access. So my question is, is 36 units realistic for a "Micro-Units" and if so how should I go about the marketing for this to a developer? The house itself is in pristine condition in a community that has so much going on. Thanks Family!

https://www.trulia.com/home/4193-4th-ave-san-diego-ca-92103-...

Hi everyone, my name is Anna Fodor I am a realtor in orange County California although I do a lot of referrals out of state as well. I come from a family of investors so have grown up watching deals happen and learning about what it takes to get started and achieve in real estate investing. I am an agent in the Orange County market where it takes deep diving to find the deals of your dreams. I am excited to work with you. Feel free to reach out and ask any questions you may have! 

I'm looking for financing to build ADUs on a property I recently purchased in San Diego. I'm looking for some insights on how to best structure my deal. Here's a brief overview of my situation:

Project Details: I purchased a single-family home and plan to build 6 accessory dwelling units (ADUs) on the property. The total project cost is estimated to be around $2.2M, with the construction of the ADUs costing about $1.3M and the primary home valued at approximately $900K.

Financing Needs: To fund this project, I need to borrow a majority of the capital. The lenders told me that they require me to have a partner with real estate development experience who would own at least 20% of my LLC to qualify for the loan. This partner's experience and my assets and project plan would be the basis for loan approval.

My Objective: I would like to know how to structure this partnership in a way that allows me to retain maximum control and profit while providing just enough incentive to the partner to participate. Specifically, I want to ensure that the partner's role is limited to satisfying the lender's experience requirement and does not entail a significant share in decision-making or profits

Hi Heidi here, excited to learn different strategies in real estate investment, currently looking at rentals, but open to more

We're currently halfway through development planning (including soft costs) to a coastal multifamily development project. Looking for any anecdotal references on developers who have delayed current WIP projects due to rate increases. 

I'm aware every project is different and there are a lot of complex details that impact a financial decision whereas simple responses here would not be reflective of great advice. We're primarily looking for some feedback on general topics that are included in decision making that cause a delay in MF developments. There are many fellow San Diego based large developers holding off on projects, so I want to see how far down in project size that trend is going.

The options we have are:

1. We stall development, cleanup current property, rent at market, hold our I/O 2.9% rate for the next 5 years while still locked in and pick back up development when rates fall in the next few years. Essentially any Reno costs need to be recouped at +ROI before development begins.

2. Continue with development but stall until we believe rates are good enough to move forward with an 18mo construction plan. Essentially this leads to worse loan terms, higher debt allowance and worse ROI on the project.

We'll surely run this evaluation in detail and we would appreciate any feedback from Socal or National developers who are involved in 2-20 unit projects.

Thanks BP Pros!