All Forum Posts by: Sean Pincus

@Ravi Patel

Go to "opa.phila.gov", and go to property search. After accepting the terms and conditions, you can type in your address. This will output information about your property regarding the zoning. 

I would bet your property is zoned RSA-5

If you are RSA-5, you have a rear yard set back of the greater of 9' or 10% of the yard, not to mention an overall open space requirement of 20 - 30% depending on the location (corner or mid block). 

You will need a variance to get the rear yard setbacks changed. Getting a variance in Philadelphia will require you to meet with your local RCO (neighborhood district). Once you get their approval, you than go to the ZBA (zoning board). If you do not get the RCO vote you will most likely not win the ZBA vote (although not always the case). You will be surprised that the neighbors who come out of nowhere trying to oppose what you are trying to do (even if you're the friendliest and buddy buddy with them). The variance process takes about 2 - 3 months. If you don't get the ZBA approval, you can keep trying and making modifications to your plans. Meeting with the RCO does require architectual plans or a site survey to show them why you want to do what you want to do with your home. 

After the variance is approved, you will need to get a building permit which may require plans review if it's an extensive addition. This could take an additional month or two depending on the extent of the work. 

Good luck!

Sean

Typical fees

- Developer Fee of 2 - 7% of Hard Costs & Soft Costs, especially if you will be doing all the re-zoning work

- Construction Management Fee of 10 - 15% of Hard Costs

If those are built into your numbers the way you structure the Private Equity money is up to you

1. Pay a Guaranteed IRR of 10% and give them a small percentage of the back-end (do the waterfall structure as 90/10 for hurdle 1 and then 20/80 once you hit your guarantee

-or-

2. Give them more of the project for 0% preferred equity (70/30)... however, I only do this type of deal if I have nothing into the project because the clock won't work against me.

There is a million ways you can slice up the pie. I develop property with zero of my own money, just my vision and construction management skills. I therefore will personally guarantee the loans, collect a construction management fee, collect a developer fee, and give up 20% of the project for 10% guaranteed IRR.

If I hold the deal, I will refi the investor out in 3 years. If you're smart, build additional hard costs budgets into your financing and have the bank fund it, you can pay down your equity earlier so the IRR doesn't kill you in the end.

Call me if you have questions... just send me a PM.

- Sean

Anthony, 

This is my approach, so take it for what it is worth. We develop small-mid sized projects in Philadelphia. Often times, Geo-Technical or Earth Engineers will be able to do a "test" for roughly $2,000 on the parcel. 

I will point out that on a small build it may not be worth that money because the "test" they do is not a soil sample or boring of the land, it is a research into the property to determine if a laundry facility or auto body shop or some contaminate / polluting type of business or entity was once on that lot a long time ago. By talking with zoning and the community planning commissions you might be able to source that information on your own quite easily. 

The bank you are working with usually will require an Environmental Review. Sometimes the review is a Phase I and sometimes it is a checklist of the items I am talking about above, which will save you the money. Typically regional banks with loan under $1M will not require the Phase I. 

Best of luck

- Sean

GRIT Construction & Development, LLC

Without seeing the wiring in the house I can infer or assume the following... 1. The house is wired this way because they furred out the walls and could only fit a short 1 gang box on the furring strips. Because this is the case the load or cubic rating of that box is only rated for one wire in and NO wires out hence why it's not daisy chained. 2. The reason they furred out the walls is because it's masonry block or brick behind the plaster or "new drywall". The way to fix this would be to use a brick or masonry chipper or channeler and cut into the surface behind the furring strips to run the wire and daisy chain it. 3. Check with your local electrical inspector and pay them a "rough wire inspection fee" it'll cost you $100, for peace of mind.

Typical hardwood flooring installation costs are $1.5 psf - $2.5 psf. I purchased hardwood from Curt at hardwoods4less as well. They were actually really high quality for being a direct wholesaler (quite surprised). I am working on a duplex rehab right now and I am going to go with the Hickory Rustic Grade from that company. Installers will install psf if it's 6' board or 1' boards, it won't change the price. 

New construction paint costs are $1.1 psf of FLOOR space (labor and materials) and that would include prep (putty, caulk, mask, and minor sanding), spray coat of primer-- this same paint trade would come back after you do all your final electric, final plumbing and final hvac to do a 2nd coat re-roll included in that same original price and all the trim work (including staining rails and stairs).

@Christopher Telles

You are looking at about $5,000 per bathroom which would include labor and materials (demo of the old bath, new tub, new diverter and trim kit, new vanity with granite or cultured marble top, new sink faucet, new toilet, new tile surround, new tile floor, and lastly a towel / shower rod). If you are doing it yourself you can cut those costs in half. 

For a kitchen, you are looking at $5,000 - $10,000 depending on finishes which would include labor and materials (demo old kitchen, new cabinets (10x10 kitchen), new granite / marble countertops, kitchen sink with faucet, tile backsplash, kitchen appliances, crown moulding on the cabinets, and tile or hardwood on the floors).

I would use GE II 100% Silicone (White or Clear). A simple painters caulk or window / door caulk is not sufficient for any thing in a bathroom. For those who are using caulk and not silicone, this is why you have mold growth in the first place. Silicone will not have that problem and the seal will last 6 months - 12 months. 

1. For my cabinets I pay roughly $100 per lineal foot. I would try looking at ProCabinets.com. I shop there and they do a line of wholesale cabinets that are great. As for granite, I pick that up at $27 PSF installed, template and with a sink cut out + sink.

2. Basement all fixed up soup to nuts would be around $15 - $18 PSF (including framing, drywall, electric, plumbing, trim, doors, and flooring)

Hopefully this gives you a high level budget to work from. Obviously, there is a ton of factors that can change those prices.

I wound up using 3/8" plywood... Glue and screwed to the existing subfloor. It'll then get 3/4" hardwood over a vapor barrier. It came out really nice. Cost me a couple bucks but at least I won't think about it daily and let it ruin my sleep.

Thanks for the replies!