All Forum Posts by: Quy Huynh

There is a property I have 3 other partners who want to invest with me on. The 3 partners don’t know each other and I’m putting the deal together for us.

The property a $1M retail building that needs exterior renovations of about $200K. All 3 of us are funding the deal equally. Of the 4 total partners, 1 of them is a GC.

My question is I am unsure if having the partner who is a GC propose to do the work on the building is a good idea or not. My concern is the inability for us to shop pricing since the GC partner will feel he should be the one doing the work because he’s “an owner”. On one hand, this may be a conflict to the group, but on the other, we’ll know the work is done right and the property will be at the top of his list everyday.

I am wondering how my peers on Bigger Pockets would handle it or have possibly handled GC partners in the past. 

Thanks for your input!

As many of us have experienced, insurance costs have increased quite a bit this year. Who is everyone using for their real estate insurance needs? 

Any guidance would be appreciated, thanks everyone! 

@Ashley Cross That's awesome. The LTV will be about 50-60%. The property is in an LLC :)

I've asked about 5 lenders so far and haven't found a Lender who can lend. 

I can fund 5+ units no problem, but when its 2-4, I always have challenges. Who do you use? What kind of terms are you seeing right now?

The property is in mid-Florida, thank you!

Joel, thanks for your reply, always love reading your posts. 

Approximately how large of a deposit have you seen on average and at which stage of negotiations?  

 Hi Winston, 

Building plan - would this be something you submit with an architect to see if their prototype could fit on the parcel in addition with checking with local jurisdiction?

Lease - Is having a fully execute lease common prior to closing on the land when doing a build to suit? Is closing without a signed lease an option?

Hi Greg, 

Lease signing - Wouldn’t we need to know if the Tenants concept can fit the lot of not prior to signing a lease? Have you seen Tenants sign prior to having a conceptual or approved site plan for the parcel?

Financial penalty - during the lease term I'm familiar, but what about during the buildout process?

There is a parcel of land I've identified to purchase with interest from a national chain wanting to do a single tenant net lease build to suit deal.

In preparation for negotiating a lease and executing the build to suit, what term(s) should be in place to protect the Landlord in case we are midway thru construction and the Tenant wants to walk? 

Should the lease be signed before due diligence is complete? What if the Tenant doesn't want to sign the lease before the end of due diligence or even prior to me closing on the land? 

In other words, I'd like to mitigate as much risk as I can at this point so any guidance would be appreciated, thank you. 

@Troy Sheets  -  They're asking me to set the fee and/or equity. You're right, they probably aren't looking for a part time gig.  I agree his skills balance with mine nicely. Yes, I'll be able to find more deals in the future myself, but due to scaling, I'd like to keep the relationship strong and worth his time so he can continue running point with the project(s). No, I can't take raw land to permit nor can I manage a build. The land + construction is projected to be $550K.  

How would you arrange it? 

@Casity Kao You have a strong point. I think I mistakenly only looked at it from a short term window (the development period) whereas I should be looking 10 years out like you are (the holding period). I offered equity for him to take the project more seriously. He doesn't have a usual fee because with the home builder, he gets a salary. 

Do you have a suggestion to what kind of fee I should offer?