All Forum Posts by: Khaled Helmi

Great job Bryan - beautiful homes!

I'm just curious what kind of project IRR (pre-tax) you look to get on luxury speculative development? Personally for rehab projects (not builds) we look at around a 15-20% annualized IRR for a green-lighted project, is that around what you aim for when running your initial numbers?

Thanks!

Khaled

Great stuff! 

Just curious about the final details of the deal - did they make money still? I assume they aren't going to work together again...

Great stuff and good luck!

I'm curious about the way you're doing your split because i'm wondering the best way to structure my own splits. The contractor gets 30% and I assume that includes all of his labor costs - does he pay for subcontractors or do you? Are you 1099ing him directly or are you guys multiple owners of an LLC/holding company?

I think structuring these things is so important so its a great way to share tips - any answers would be greatly appreciated!

great numbers. I don't see a property management fee - are you guys managing these yourselves?

Your rehab is 14k for all of that stuff - sounds a bit low.  Is that normal for a sc rehab? Or you doing the work yourself?

Great stuff though - congrats!

@Bryan - great job man!

I'm curious, when you're budgeting for actual construction costs, do you have a rule of thumb you use to estimate? (e.g $150/sqft) Do you find it to be any different for a multi-unit vs. SFH?

Any particular story you want to elaborate on?  Love to hear...

Courageous post @StephenBeaudoin as its arguably more useful to hear what went wrong than all the "I made 100k!" stories.  Thanks for sharing!

Congrats - please keep us updated on how it goes!

I agree with @WayneBrooks as there are a lot of variables here and anyone who (1) has experience and (2) guaranteeing up to 40% returns would probably already have his rolodex of contacts and wouldn't need your money.

I cant advise you on analyzing the development side, but I'd make sure I check the local state criminal records for him (great way to get some info on his past) and ask for past projects he's completed and then do your due diligence and make sure that the builder is actually his company.

In terms of specifics:

-How much minimum is he looking for?

-How is he structuring the entity that you will be putting the money into? (Please tell me he isn't asking you to write the check in his name)

-How much of his own money is he putting in?

That's what I'd ask to start.  Be VERY CAREFUL here as this smacks very fishy.

Khaled

PS - All con man SOUND like they know what they're doing so other than concrete examples of past work I'd completely disregard it