All Forum Posts by: Scott Krone

@Ivan Aldana - first well done on your first property.  Yes, you are correct about partnering.  It is a very important decision.  Since it is your first deal, why the emphasis on speed versus insuring doing it correctly.  If it will take a year (which isn't much time) to season the first property, than you have at least that much time to evaluate who you could partner with.  You can also do equity investors versus partners.  There are many ways to structure an investment.  You could also consider non traditional lenders - but there will be a price for speed.  

Perhaps taking some time to do it right is better than fast and not so right.

@Ezekiel Williams - I know of real estate networking groups in both Ft. Myers as well as Tampa.  If there is not one in your city, then perhaps start one.  To @Karen Margrave 's point, what value can you add.  Having a strong network is of great value.  Starting a networking group is a way of adding value.

@Hannah Lucas - Interesting deal you are trying to solve.  The first step is to pull up the municipal zoning, and determine which zoning district the lot is located.  Once you know that, you then research that district to determine the minimum lot requirements for subdividing a lot.  Each municipality has their own zoning, and there are usually quite a few diffierent residential districts within a community.  Having the existing survey is also a requirement to determine if what you intend is possible, because it will show where the house is located on the lot.  That will impact potential setbacks for the new yards.

If you can't find this information or have questions, the municipal planner and/or a local architect should be able to assist you - assuming you have the survey.  

Complete new builds are slightly different than a tear down.  You willl most likely have to go through the subdivision process in the municipality, which requires survey of subdivision, new legal descriptions and PIN numbers.  Most municipalities have a committee to approve this process typically known as the Zoning Board or Plan Commission.  There may be an impact fee for the schools, etc.

Once you have those approvals, then you will still need to submit for building permits.  There are nuansces depending on if they property is supported by local utilities or wells/septic are required.  If you have not retained an architect, you will at this stage.  Getting a GC on board will also assist the process.  In addition to @Scott E. list of vendors you will also need an attorney to assist you in preparation of the subdivision.

@Rhonda Greenhaw  - not IF but WHEN....Plan as if you know we will be in a recession.  It is coming.

@Ian Appold  Congratulations and welcome to the neighborhood.  We are just right around the corner from you!  We redeveloped a warehouse just a block away a year ago and converted it into self storage.

Did you acquire the building with Maddie and Bella's?  

@Michael Mancuso - have the firms you interned with expressed interest in offering a full time position?

That would seem to be your best lead.

@Sargis Yeghikyan - great aspirations.  Continue to learn, be a spunge.  As Robert Reynolds suggested, summer internships in any area of real estate - banking, construction, developer, property management will assist you in your future career.  Each summer we have interns that try different aspect of our business.  We and they both view it as a means to learn if they enjoy the job as well as the industry.  Between the time I was 16 and graduated from college, my career aspirations probably changed 15 times.  It was through experiences I learned what I enjoyed and what I did not enjoy.  Either way have fun along the way!

@Mike Eichler Congratulations - first of hopefully many!

@Brandon Montgomery  - When we structured our model, we didn't look at the "fast rate" model.  We looked at the successful models built over time. The rapid growth models tended to include many that didn't last very long for one reason or another.  The successful models withstood market corrections and recession/inflation.  I find it interesting when people promote real estate as a get quick rich investment strategy.  Going slower also insures you have the ability and systems to manage your portfolio.

I recently gave a presentation at a Real Estate conference on the state of the economy, how it may impact the market and its potential impact on both residential and commercial real estate.  I cited a few resources, but also saw quite a few similarities to the last major recession that was not related to a bank or internet crash.   One goal of the presentation was to incite discussion on the marketplace.

What are your thoughts?  How does our current economy compare to 1979 and what do you think we should expect?