All Forum Posts by: Philip Pape

Looking for a competitively-priced surveyor/engineer in Connecticut to do a septic plan for FVHD for at least one house (my personal residence in North Granby, CT) but also the site work, staking, and septic plans for up to 11 others (subdivision investment in Barkhamsted, CT).

If you happen to know someone, I would appreciate the referral.

The original surveyor is deceased, and the engineer who bought his plans (his former partner) is refusing to update them, and he won't share the AutoCAD file. I think the original owner probably never paid, so he's trying to make up for it by having me redo everything.

I'm trying to keep expenses low on this since we're using the same footprint and septic/leach field locations, so it seems a waste to redo the plan...and of course I'd rather work with someone honest and professional.

@Mark Gallagher, it's between 6 and 12 lots. These are great ideas, thank you.

We're under contract for a multi-lot approved subdivision here in Connecticut (CT) that we will build out as new construction (spec).

The land has been carved out for a road, but there is no road in place yet.

The first 2 acres includes the right of way from the existing street to the subdivision, followed by the lots. This right of way is a separate lot that CANNOT be built on (taxes are about $75/year).

After we build out the lots, we need to figure out what to do about this front area.

We're considering keeping the road private and creating a Homeowners Association (HOA) to maintain the road, landscaping, snow removal, and garbage removal, as well as cover taxes on the right of way. It would open up the possibility of adding a common pool to increase the value of the neighborhood.

One benefit of this is the significant savings of creating a private, gravel road vs. a fully paved, town-maintainable road (about $100K less). Profit per house is estimated at $100-150K so this is not a small amount.

QUESTION - Does anyone have experience with starting an HOA in CT, and is this a reasonable idea given the oddity of this extra front lot?

Hi everyone, this is about new construction in Connecticut (CT).

Roughly 85-90% of homes have full basements, and I think there's a psychological expectation in the market for a full basement in New England, to the point where the market might value a 2,500 sqft house WITH a basement more than a 3,500 sqft house with just a crawl space.

My question for other developers or real estate agents/brokers out there, is what are the pros/cons of a crawl space over a basement?

- Up-front cost difference
- Energy (heating) costs
- Comfort
- Resale value impact
- Anything else that's relevant

When I say crawl space, I mean a non-ventilated, moisture-protected (vapor barrier, waterproof spray, and sand/gravel), heated space, NOT the dirt-covered, ventilated space of old.

Thanks!

UPDATE: I spoke to several brokers, and the consensus is that for new construction on a primary you're better off going with, in this order, Farmington Bank, Liberty Bank, or Simsbury Bank.

@Bob Green, primary

Can anyone recommend a good construction loan broker in the Hartford County (Connecticut) area?

I am taking back a second lien on a property undergoing renovation. In a simultaneous transaction, I am entering a security agreement with the owner for a share of any profits from sale and (if applicable) rental, which is substantially more than if I charged interest on the note. Renovations are being completed within the next few weeks, at which time the property goes on the market.

Scenario 1 - The property is sold, my note is paid back, and I receive 20% of the net profit

Scenario 2 - The property is re-financed, my note is paid back, and the property is rented. I receive 20% of the cash flow (net profit). Later, it's sold and I receive 20% of the net profit.

This is purely a money deal on my end (no involvement in rehab or rental).

Question - If the property sells quickly (say, within 3 months), and since my profit is paid through a security agreement (I never have title to the property), how would this be treated for tax purposes? Is this simply an investment with capital gains?

@John Woodrich, this is excellent advice, thank you for taking the time to respond.