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All Forum Posts by: Scott Walton

Scott Walton has started 1 posts and replied 8 times.

Post: What are your goals for 2021?

Scott WaltonPosted
  • Developer
  • Saint John, New Brunswick
  • Posts 8
  • Votes 3

Secure zoning approval for senior housing development, complete the private investor fundraise, start construction

Post: Anyone in the forums from Canada?

Scott WaltonPosted
  • Developer
  • Saint John, New Brunswick
  • Posts 8
  • Votes 3

From Saint John, New Brunswick. Currently leading a medium sized senior housing development. If you guys do any zoom meetups please let me know. I did one yesterday with a group from Vancouver and it was great

Post: 120 Unit Senior Housing Development: Construction Loan

Scott WaltonPosted
  • Developer
  • Saint John, New Brunswick
  • Posts 8
  • Votes 3

@Ryan Seib thats a great idea, didn't know that was a thing

Post: Commercial Properties You Can Live In

Scott WaltonPosted
  • Developer
  • Saint John, New Brunswick
  • Posts 8
  • Votes 3

Few questions I would be asking myself if I were in your shoes: 

What is my long term plan, and how does this support it? Is this the first of many more locations? Do I want to go for a bigger spot since there's guaranteed income through my business? Does this space have development potential (commercial and residential), what ratio of commercial/residential is appealing?

Next, I would want to know how banks will treat this. Will they consider the lease with my business or treat it as a startup company? Some banks won't include the income from your business if you own it. Then I would figure out what my overall budget is and what you can afford for a down payment. 

Finally, I would talk to a tax accountant to understand whether it is more economical to hold the property personally or in a holdco. 

Good luck!

Post: Cash out advice on two retail properties in Florida.

Scott WaltonPosted
  • Developer
  • Saint John, New Brunswick
  • Posts 8
  • Votes 3

Few things to consider: 

Timing: It may depend on your long-term plans with the two properties, since they're in separate cities you may end up selling one at a different time if the market heats up. Breaking up the mortgage for a sale could end up in higher costs. 

Taxes: I would ask a tax accountant about the ramifications of having two vs. one

Finance broker: I would also connect with a finance broker for some perspective

Post: Qualification for first commercial loan

Scott WaltonPosted
  • Developer
  • Saint John, New Brunswick
  • Posts 8
  • Votes 3

I am in the same boat as you currently. 

Few things that have helped us:

1) Commercial finance broker: this will save you a ton of time and give you a lot of credibility with lenders. They will know who to approach (that will be more newb friendly) and they will end up getting you the same rates as if you had experience. 

2) Lender/investor with deep pockets: this will give the banks confidence that if **** hits the fan you'll be able to cover cost over-runs. It also gives them more confidence because you were able to convince a savvy HNW person to back your project. 

3) Lender/investor with development experience: This can offset the experience you're missing. 

4) Consultant or advisor with dev experience: more credibility 

      Post: Looking to connect with people in the Maritimes

      Scott WaltonPosted
      • Developer
      • Saint John, New Brunswick
      • Posts 8
      • Votes 3

      Saint John is great but supply is low and prices are high right now. Happy to share which areas are "good areas" if that's of value. Cheers

      Post: 120 Unit Senior Housing Development: Construction Loan

      Scott WaltonPosted
      • Developer
      • Saint John, New Brunswick
      • Posts 8
      • Votes 3

      Hi there,

      I am developing a 120 unit IL/ISL community on a 19 acre property (flush with old growth trees, waterfront, and 210 foot elevated views). The project is $54M in total costs. The debt equity split on the financing will be 85% debt (75% bank, 10% secondary lenders) and 15% equity (mix of private investment and land contribution). The developers (myself and two others) are big on insulating ourselves from personal guarantees in deals. One idea we had was to have a construction company borrow the money (in exchange for holding the title until refinancing) to insulate us from signing guarantees. 

      Has anyone had any experience with this? What is an acceptable interest rate premium (construction company borrows at 5% but add on X%)? 

      Thank you,