All Forum Posts by: Paul Harb

@Greg Dickerson thank you Greg for your reply. Yes Comed has one program for the project when it's affordable and another labeled new construction not for affordable projects.

Is anyone familiar with the ComEd and nicor or new construction energy efficiency programs that offer incentives and technical assistance to developers. The project is a mid-rise new construction.

Do you recommend them and do they affect your project schedule? Any shared experience?

Thank you!

Hi Barry, I like both ideas about JV and land long term lease so I will approach the owner about these 2 options.

Regarding the long term lease contract, can I use an option to by the leased land? Say in three years I have $ to do so. Any advice here?

Thanks,

Paul

That is so so helpful thx

Hi Barry no worries. I just saw your reply and thanks. 

Paul Harb 

Sure

What I meant Barry is I wanted to hear more about the number 1. in your reply above. Just to understand the bigger picture as I have never done JV's before: so in your alternatives you meant that the land owner will offer the land and I will have to find an investor that is not the land owner to bring the monies and I will be the manager of both the construction project and the unit rental/management afterwards. Did I understand it good?

Thanks in advance,

Paul

Hi Barry and sorry for my late reply. I like all of your alternatives. The project has potential however it is just a 10 units 3br development. Plus in order to be able to do 10 units we must purchase additional parking spaces offers for an additional about 30 percent of the land cost...

I am not sure I completely understand your point number 1 so I appreciate a bit more of explanation on it but definetly I will approach the land owner based on the JV opportunity.

Yes I am sure if I do an arrangement this way it will be a great learning experience for me. 

Thanks again,

Paul 

Hi Don and thanks for your answer, I agree with you. Right now I'm not but I'm trying to be an investor and a developer so I am doing an MBA in real estate development right now. 

I think that in my case it will be too much risk taking at this date to make such development. Rather I can invest in something with the faster income while planning future development projects.

Thanks 

Good morning, I have been doing Property Management now for four and a half years in a great student neighborhood area and high rents. I could have the opportunity now for either by an already income-producing asset and raise the rent or buy land in the same area and build a 10 units building. During the phase where I Will be preparing the permits for the construction there could be a low rental income from renting some garage spaces where the land is (but really very low).

The latter solution will not generate income before at least 2 years and require a higher investment amount for the down payment and the construction loan. 

Any advice here on what investment to make now? 

Thanks in advance