All Forum Posts by: Ryan Walker

Thanks for the reply. Duplexes certainly sell for less $/ft, about $25 less per foot looking at the comps.  However The Duplex option is slightly more profitable because I can build 2 duplexes (4 units) or 3 SFR and the duplexes cost slightly less to build on a $/ft basis. I am leaning toward the SFR option because I believe there is slightly less risk in liquidating the properties. Just wondering if that risk is worth the 20k??

These would be to sell only, client does not wish to hold/lease the properties. And in the area .16 acre lots are actually well within the normal range of the comps.

I have a client who owns an East Austin lot that's just over half of an acre. He is planning On subdividing this lot into 2 lots, so that he can build and sell 2 duplexes. The lot is only large enough to build 2 duplexes, but he could subdivide the lot into 3 parcels and build 3 SFRs. Running the comps and costs associated for each I estimate the duplex option would be roughly $20k more profitable than the 3 SFR option. It seems to me that there are extra risks associated with the duplex option as he will have slightly higher construction costs, a slightly less desirable property, and 1 more unit to sell. Is the projected additional $20k in profit (total profit projected to be 200k) worth it?

Thanks for the replies and information.  We have had a survey done and do not anticipate anything that would require a variance, but it's good to know the length of time it could take to get that completed.  

The lot is in Windsor Park near Manor Rd and 51st.Client has cash reserves and excellent credit and would prefer not to have to take on another partner.   An Architect I've worked with in the past and who has done permitting for me said he thought the whole project would take 12mo. with the subdividing/permitting taking 4-6mo.  Does that not sound possible?? As the timeline you're suggesting may change my clients thinking.

I have a client who owns a lot in booming East Austin that can be subdivided into 2 lots where he can build 2 duplexes (1 duplex on each lot).  He owns the lot outright.  My question is what is the best financing strategy (and why?) for him if he wishes to have as little out of pocket expenses as possible.   Client is also self employed with very little income over last 3 years.  

Lot Value: 300k

Total Estimated Construction Cost: 600k

Thanks for the replies. If I am unable to be compensated for transactions in a Solo 401k as a disqualified person are there any other ways for me to partner with my mother in an IRA or 401k? Perhaps a ROBS 401k in which I am an employee or Partner of the newly created Corporation? Any Other suggestions?

I am a realtor, My mother has a high value 401k she is looking to roll into a solo 401k in order to purchase rental properties for her portfolio.  Am I prohibited from acting as the agent on these transactions?? I understand I cannot own any portion of the real estate, nor share in the profits, but I cannot find anything definitive on whether or not I can act the agent.