All Forum Posts by: Venu Vedre

In Charlotte the costs for an Asphalt street(including all utilities) is approximately 800$ per Linear feet(30 ft width). So 700 yards * 3 ft * 800 = 1.68 MM. This includes contractors overhead and profit. Concrete will be almost double that.

Doesnt sound too bad. If its a total of 6 townhomes @1970 heated sqft each = 11,820 Heated sqft

So if the GC quoted 2 Mil , then price per sqft = 169 per Sqft. I am not sure about Tampa market, but i am guessing the GC has given a ballpark estimate of 2 Mil.(The final numbers depend on the Construction documents. )

Since this sounds like a Design Build Contract with the GC, you can discuss/work with them to get your costs down.

Also check the rental comps in your area and make sure you can cover the Debt Service / Feasibility of this project.

Only risk if they found out is that they can call the mortgage note(ie you have to payoff the loan amount)

Assuming your lot is not part of any Neighborbood/HOA etc, Yes technically possible as long as the lender is good with it. I would definitely let them know ahead of time , about your plans to subdivide and see if they are on-board.

If yes then next step is to hire a Surveyor(to see easements/boundaries) then go to a local Civil engineer to come up with a site plan making sure there is access to all lots. Once it is subdivided then you will get separate parcel ID's/titles for those. Last step is to inform lender so they can do a appraisal again for the specific existing lot and do a re-finance the loan.

Any thougths are appreciated. Here is the background:

Background:

I met a General contractor a few years ago through a local RE meetup in Charlotte NC area. I have seen his work onsite and He is very good at what he does and has completed lot of townhome projects recently.

He currently has a investment opportunity that i am interested in . He is building a townhome product and is looking for investors to close the property and for pre-construction development and for securing construction loan. This loan is structured as debt(and not equity) with a decent annual rate of return.

Question:

I have never loaned money directly to a GC before. What is the best way to make sure my Loan is secure.

Looked up a few posts online and sounds like a couple options are 1) joint-tenancy on title, or 2) a deed of trust. I dont quite understand the pros and cons of each , or is there a better way to structure this.

Planning to reach out to a few local RE attorneys but wanted to get thoughts here as well.

Thanks,

Venu

@Elizabeth M Williams Just curious is it possible to do a 1031 exchange on a syndication if you are a LP investor? For ex: If i invest 100k into a RE Multifamily Syndication as a LP , i am technically only owning shares of the LLC partnership and will get Yearly K1's > Then if the GP sells the asset say after 5 years , and turns my money to 150k , would i be able to roll over the 50k using 1031 exchange into another Multifamily syndication? I always assumed that you can only do a 1031 exchange in syndications if you have 'Tenancy in Common' (or) if you have an LLC with exact same set of partners in every syndication you invest.?

Thank you David.

Can anyone please recommend a good attorney in Charlotte area who specializes in construction /contractor law disputes? 

This is the story: I was shopping for a general contractor for my ground up townhome construction project and got a referral from a local realtor. I met with that GC and showed him the project site and asked for estimates. This was in Dec 2020. He had sent me the estimate for horizontal only(clearing the wooded lot/stormwater bmp etc) and for some reason thinks that now i owe him 1% of the construction costs (~ 10,000 USD) for providing the 'Qualified Itemized estimates' . He in fact copied an attorney from Cotney Construction Law,charlotte and trying to file a Lien on the property. Is this possible? He says that my text messages are proof that i owe him money, and those can be used against me.(you guessed it, i never said i will pay him money for estimates)

I never signed ANY sort of contracts/paperwork . I always thought GC estimates are free, anyone seen this before? Thinking of finding an attorney myself and reply to that email/send him a letter. I still can't believe this is happening lol. Any advise is appreciated.  

Apologies not answering your question but i wanted to ask the same. I am at 5% for a 30 year loan for one of my SFH investment rentals(that i got in beginning of 2018) and wanted to check if its worth re-financing. BP Investors any thoughts on this please - what are your current rates?. Thank you!

Also curious if anyone had experience finding engineering services using sites like homeadvisor.com? Thank you!