All Forum Posts by: Joshua Berube

hi all

I would like to link to a fantastic video I found on youtube, is that allowed?

thanks

joshua 

hey Tom, thanks good know! do you know when this expires? Im assuming its part of the overall OCP for downtown..

I just found out that there is a good possibility that my property is exempt the city's development cost charges. I will definitely have to confirm this...

@Roy N. 

The winters here are a rainy breeze compared to Edmonton, Alta where I grew up. Believe me, I am well versed in the art of shoveling snow.... never again is what I say. I don't think I will have to worry about snow on the roof. It can happen though, so I will keep that in mind when I build.

@John Wilson 

there are few muilt-family buildings for sale in my target area, the few that are, for sale are cheaper to buy than to build, you are right. the properties, though, are old and most are large houses that have been suited out. a purpose built fourplex, however, is rare and a newer one, aside from one on the alley that I mentioned earlier, non existent. I also believe building new mitigates a lot of unknowns. I think I would like to pay slightly more in order to have less risk. Lastly, I really enjoy building. If this goes well, I see myself building again, so the experience is invaluable.

@Matt Davidson 

I am familiar with PVC Membrane. I helped build a Cabella's (sporting goods store) in northern part of Nanaimo, and that is what they used. you are right, it is impressive stuff. and the durability is controllable by the thickness of the membrane... thank you for reminding me.

@Jon Klaus  

some of the your comments make me think that you have been here before, is that true? what did your think?

I just ordered the book Real Estate: Principals and Process as recommended on BP. apparently its a tome of a book. at over a hundred dollars, it is expensive, but the knowledge will be well worth it, I believe.  

@Joe Fairless 

with out a doubt, whatever happens, its going to be exciting. thanks for commenting, I thoroughly enjoy your podcast, its one of several I listen to everyday at work. please keep up the good work.

@Wayne Brooks 

this is one of the reasons I chose to do a lease with an option. depending on the type of financing I get, those numbers, as they currently stand, might not work for me either. the ferry to downtown Vancouver is slated to start in march of next year. This will give me a chance to get a feel for how the service is going to be received, and maybe an idea on how it will affect the nearby neighborhoods.  I don't necessarily need to build right away, I can buy the property as a primary residence and hold until the numbers do work. i believe it is just a matter of time. i strongly believe this property in the path of progress.

 @Karen Margrave 

there are two main reasons that I have given myself a year. As I stated above, I would like see how the new ferry does, and the progress of the downtown core.

second and more pressing, is that I don't know what I don't with regards to permitting and dealing with city hall. it could be breeze or it could be very difficult. I am not worried about the potential risk, at least not so much as to stop me from moving forward, but I don't want to put unnecessary time constraints on myself, as this is a big step forward for me as it is.

you're roof comment has made me reconsider my thoughts. I shouldn't automatically write it off. I hadn't thought of the wall height advantage before, though it makes sense.

Thank you all for your comments.  I will keep posting as much as i can

@Roy N. 

Have you done any of these types of builds? do you know of any that have been built in Canada? from what I am reading this standard applies only to the envelope?

@Roy N. 

My first instinct is to build a box. my research says over all its cheaper, but I have heard nothing but bad things about flat roofs and leaks. the property would be best served with a box and it would match the area. Im not married to it though, and I will be open to other options when I have more information. there is a possibility that the top floor will have an ocean view.

I would like to build as green as I can, so I will be as energy efficient as I can, money allowing.

@Jon Klaus 

My Plan for the plex is to rent it out when I am done. I have not yet decided if I will live in it after completing because I really love living downtown Victoria. That being said, Im not above living for free if the numbers work.

I have no desire to sell the building unless there is a really good reason. the property is in a fantastic location to take advantage of the downtown growth.

An elderly man has just completed construction on a 4plex (4-1bed/1bath) in the alley behind my property on a half lot, facing said alley. he built a stacked row house, what looks to be two townhouses, the two top suites are 650sq/ft. and the bottoms 700sq/ft. He told me that the final appraisal came in at around 675,000 for the building. he told me he spent close to 600,000 building it. I have reason to doubt his numbers, though he did have to extend the water and sewer service half way up the back alley so that he could service his property. and I guess the city made him widen the alley and pave it as well, so maybe his costs would be that high.  my property is a double lot, already zoned for a 4plex facing a secondary street, with a water main and sewer main right out front. he built all one bedrooms and I plan on building all two bedrooms. I would like it if they were approx. 1000sq/ft. but it will depend on the costs.

rents in the area are between 700-850, depending on which side of the highway you're on. I am confident that I will be get a least 750, but believe it will be higher.

My bosses family does development. I asked what they typically come in at and he told me at about 130. they build higher end houses in Victoria, so I am guessing that that would be on the higher end of my costs. I am estimating the build to be at around $100sq/ft. to $120sq/ft. I am going to go to a few private lenders once I have the assignment of gent to see what they would be willing to lend and where I need to be in order to get approved. I will be listening, and re listening to the podcast with the underwriter for ideas.

I have given my self one year to figure the pre development out. I have yet to talk to the city as I am waiting on the assignment of agent which I will get once the lease is signed this week ( I have already signed the purchase contract )

I will have a better time frame for the construction ta little later down the road.

@Wade Sikkink 

I would imagine that building a private residence would be similar, I would very much like to hear your thoughts!

Joshua 

Well, as the title says I am going to try an build a fourplex. And its my first deal. This will be my diary. Come hell or high water, you will have a front row seat.

Before we get into the deal, understand that I am going to consider this a diary so I will put almost all of my thoughts on what I am doing and it might get a little.. verbose. then again, maybe it won't! really, I have no idea since I have never done anything like this before,

 Okay, so before everyone freaks out, I work in construction and have run crews before, I can read prints, and do layout but my experience lies in condo construction and I frame with steel as opposed to wood. I have done wood frame before and though I cant claim to be any good at it, I know enough that I know what I don't know, if that makes sense...

okay the property.

I live on Vancouver Island, in the city of Victoria, but am buying in Nanaimo, which is an hour and a half from where I live.

The property is zoned for a 4plex and currently has a little one bed one bath on it, the listed price was 199,000 with a city assessment of 151,100 (land value 134,000 and the house 17,100) . the lot is 9372 sq/ft and the house is 576sq/ft. super small.

I didn't think the property was worth anything close to what was being asked, but I called the agent anyway, and asked about the property. the agent said that the owner owed 180,000 and wasn't going to go any lower, but as the property had sat vacant for four months he wanted it gone. I know the property is not worth that now, but I think it might be in a year or two because of what is happening next year.

the downtown core in Nanaimo is starting to develop. they have broken ground on a new hotel tower and next spring a new walk on ferry service is starting that will travel between down Nanaimo and downtown Vancouver.

Vancouver is one of, if not the, most expensive place to live in Canada. the prices for a 3 bed 2 bath in Vancouver can easily reach a million dollars.  there is currently a 3/2 listed for 2.9 mil. the average price for the same in Nanaimo is in the 250-300 range. the closest price point on the main land is a two hour drive in heavy traffic. the ferry will be an hour and it goes straight downtown.

I have 50,000 that was borrowed from people who believe in me and I not really willing to risk a large chunk of that to buy a currently overpriced property that the owner refuses to move on, but that isn't to say he wasn't motivated. it had sat vacant for four months, and the same before the last tenant was there. this guy did want it gone,

so I offered a lease with option to purchase. i offered the 180,00 that he owed with 10,000 down on a two year term, with a one year extension for 5000. both would be taken off the purchase price, bringing the price down to 165,000 in three years. I will also be covering all the costs for the property during the term, so the owner can basically wash his hands of it unless something catastrophic happens.  along with the lease, the seller is giving me an appointment of agent for the property so that I can start talking with the city.

During the coming year, I am going to go through the steps and get everything ready in order for me to build.

one of the first things I plan on doing is approaching a private lender to ask where I would need to be or order for them to feel comfortable loaning the construction costs, so that I have a realistic goal I can work toward during the net year. I am also considering taking a GC course in the spring at the local uni. I would love to build this myself, I know that I could and I really think if this goes well I would like to repeat the process.

 I have a few people in my life that I can ask for help or advise. the owner of the company I work for does development and I have made more then a few contacts through my work.

the research I have done has told me that I can expect the cost per foot to range between 95-130. I would like to narrow it down some, but I will get a more true number in time.

so that is where I currently stand. I can honestly say I have never been so excited. I am trying to keep in mind that things can still go south though. the ferry service could fail, and the development plan could fall by the wayside, but that is one of the reasons that I did a lease, if this deal goes in the pooper, I can walk away, slightly poorer in pocket but vastly richer in experience.

I will most likely post a lot of questions as thing start to progress for me, if not here, then in the forums. so stay tuned. im excited.

Joshua

@Felecia Sewell 

 that is my attitude as well. there have been a lot of setbacks, but I just keep believing, and acting like it will happen for me.  keep moving forward. To success.