All Forum Posts by: James Roberts

I have been designing and building for clients for many years, but now I am looking to connect with a private lender for (3) immediate projects that I own.  
Hopefully this post does not come off as arrogant... I am just tired of building assets for clients and not myself.

WHAT MAKES ME DIFFERENT?
1)  I am not NEW.
2)  I can control and lot of costs.
3)  I have an in-house architectural and engineering Team. 
4)  I complete all permit applications and comment responses to achieve building permit approvals.
5)  I have direct dealerships set up with building materials.  windows, doors, steel framing, metal roofing, spray foam insulation, fixtures, etc.


Sacramento
(1) SFR and ADU project is 70% complete

Sacramento
(1) ADU project is in permit

Gainsville
(1) SFR remodel is ready start 

Please PM me for details, to talk staggery and terms? 
Thank you in advance.  James- 

Hello Ivan.  Are you looking specifically for the construction loan to fund the container home build?  I have been building container homes professionally since 2006, and sorry to tell you, but I have yet to see any client achieve any bank lending on a container build.  Unless the loan was pulled from equity of an existing home.

Who is building the container homes?

FYI, and may know this, but your image does not qualify as a "tiny home".  The containers are 1280sf + the ground floor which looks to be another 640sf.  
  
I moved from Miami to Sacramento and recently bought a house in Gainsville to remodel for my ex-wife and daughter.  My company, TAYNR, does steel frame engineering for a home builder in the Naples area.  The material is produced in Jacksonville.  I am thinking about coming back to Florida.

I have years of container build experience and could help with development.  Feel free to reach out.

James-

I have a small deal of lifetime opportunity to cash-purchase an off-market SFR in Florida with private money from a close friend.  I am currently in contract with the home owner and we want to cash close by 30DEC.  The purchase funds are in escrow and the title is set.  My friend and I have done other financials deals together on renos and new construction build-outs, but this is our first title purchase.  Although the funds have already been sent to escrow, I want to put a simple/formal contract ion place with my friend for cash loan.  Biz is Biz-

FYI, I am a career designer/engineer/builder and he knows I have the knowledge and capabilities to rehab the house (definitely not my first rodeo).  For years I have been building for clients.  This will be my 4th property that I own and 2nd that will own without a partner.

I am a new BP-Pro member and have not been abel to get through the full site yet.  If anyone could direct me to the correct pdf/contract or library of legal docs would be extremely appreciated.

Stats
Appraisal $179,000
Purchase $80,000
Finder fee $20,000 (paid to Florida friend in the back end)
*yes, $79,000 in immediate equity, as-is*


Loan #1
30Dec2022 close date
Purchase $80,000
Closing $0.00
Taxes $250 prorated Dec22 
Misc $2,000 
Total loan amount $82,250
Term 11.5% over 12mos
Payment is full at agreement payoff.  No prepayment penalty.



Loan #2   *Ready for discussing best plan of attack*
Jan 2023 target close date
Reno Feb-Apr 2023
Rehab $90,000 (conservative high budget)
Term 12mos at 11.5%  *I am open to other reno financing options*
Term 11.5% over 12mos
Payment is full at agreement payoff.  No prepayment penalty.



Time is sensitive. Please feel free to call me directly?
Thanks a lot!!
James

I did not receive a reply to my prior post...  Am I in the wrong forum category?  Is more information needed?

Is there a library of the contract docs available for different scenarios?  

I have secured the funds, but really would like to get a simple/formal contract in place.  Any help would be appreciated.  

Thanks, James-

I have a small deal of lifetime opportunity to cash-purchase an off-market SFR in Florida with private money (close friend). I am currently in contract with the home owner and we want to cash close by 30DEC. Escrow and title are set. I just need a standardized contract for my friend and I to complete the private/cash loan.

I need a standard agreement to complete the transaction for the private loan; the docs to purchase the house are in place.  The private lender is a close friend and we have done other financials deals together, but this is our first real estate deal.  FYI, I am a career designer/engineer/builder and he knows I have the knowledge and capabilities to rehab the house (definitely not my first rodeo).  

If anyone could direct me to the correct pdf/contract would be extremely appreciated.

Stats
Appraisal $179,000
Purchase $80,000 
*yes, $99,000 in immediate equity, as-is*

Loan #1  30Dec2022 close date
Purchase $80,000 
Closing $5,000
Misc $5,000
Total loan amount $90,000
Term 11.5% over 12mos
Payment is full at agreement payoff.  No prepayment penalty. 


Loan #2  Jan2023
Rehab $92,500
Term 12mos at 11.5%
Term 11.5% over 12mos
Payment is full at agreement payoff. No prepayment penalty.


Time is sensitive.  Please feel free to call me directly?
Thanks a lot!!
James 
(916) 524-4997

Hi Breland,

I'm somewhat in the same boat you are. Did you decide to go with a partner or something like a DSCR loan? Or, come across any other options?

Thanks!

Hello Richard. You see where Sac is and where the medical expansion is going here. We have built shipping container and steel frame ADU's in the Oak Park area for clients and now we are building our own as well. I am currently putting a 2/1 primary and 1/1 ADU in S. Oak Park; both container homes.

If you run across any land-deal/development opportunities, let me know?  We are hunting.

Thanks again for the reply. I will bullet replies for simplicity. Please do not take any of this with arrogance... We have done a lot of work with the medical market and we both live in the same neighborhood. Our primary need is to understand the best path of securing the financing outside of the downpayment. We do plan to put the properties under a LLC. But how do banks look at a new LLC, but with a track record of construction?

1) Travel nurse demand.  Sacramento specifically has (3) major medical expansions near downtown.  This propoerty is blocks away from the largest medical tech-center expansion in California history.  
2) The wife of one of our partners is a carer travel nurse.  We have the inside track on space and amenity requirements from her and the agency she is with.  Very helpful:)
3) You have a good point with the utility overage potentially being a conflict.  I brought this up with our nurse contact and she said that many nurses travel together.  They are professional adults and it should not be a problem for the nurses to share the accountability.  Basically, with the utility overage term in the agreement, it becomes the tenant responsibility to watch their usage. 
4) The medical industry does not have "seasons" and realistically all 4 seasons in Sac are in demand because of the surrounding outdoor adventure destinations.  Regardless, 13-26wks contracts will be own primary focus with a backup of business and vacation travelers. 
5) We have a personal contact investor so the hard-money term for the down payment and reno$ will be 10%. We are a deign/engineering firm and has been building for clients for decades... reno and new construction is the easiest part for us.
6) Great point on the cleaning budget.  It provides a mild level of visual security as well.
7) Other amenities will include low-cost bicycles and e-scooters (damage/loss deposit required), and off-street parking for this that doe bring vehicles.

To Michael's point, we re-ran the report using 7.5%, reduced the monthly to LTR rates for the immediate area.  It still cashflows with $800-$900 p/mo.  This will sustain the initial investment and will buy time to complete the SB9 lot split.  

Once we have has the SB9 complete, another primary with a 2-plex or 4-plex ADU. This will provide up to 5 additional rentals. I understand this sound aggressive, but the area calls for doors and MTR units.

If a conference call is available, I would definitely be up for that.  I am sure there is additional detail needed.  I know I have additional questions.

Thanks Alicia for the prompt reply.  Couple points...

1) We will be leasing mid-term to traveling medical staff and tenants will be placed by an agency. We do expect a revolving door which should keep the vacancy low. 
2) There are (2) SFRs on the property and the rooms will be leased individually, which is why the rental rate is higher. 
3) The plan for utilities is to provide all utilities with a monthly electrical and gas limit.  If the limit is exceeded, the tenant will pay the difference.  
4) Our downpayment will be from our hard-money investor.  The plan would be to refi once the reno is complete and the tenants are placed. About 2-4mos from closing.  

With the #4 finance plan, % should be expect LTV and what would be the best path for refi cash-out to pay back the hard-money?

Thanks! James-

View report

Hello BP forum. We are a design/engineering/build firm located in Sacramento, CA.  Frankly, with the market shift, volatile material costs, risk, etc. we have decided to not build for "end-user clients" anymore and put ourselves in the "client" position.  This is our first BP property report on a real BRRR project that we have access to.  Please look this over, pound us with questions, and let us know where our #s are right/wrong.  We have an investor meeting this Thursday (in 2 days) and would like to get this report polished up as best as possible.  

Thanks in advance.  James