All Forum Posts by: Victor Kapustin

 Amit, how much were all of your soft costs for this Development?

 Thanks Henry, I guess I was looking for people in this forum with experience in this subject who could answer most of yours and my questions. 

 Hi Henry, below are my rough estimates.  I have not paid for anything yet, but imagine the next step would be buying a land survey and engineering/architectural drawings.  And then getting General contractor estimates for the construction.

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Land ($18/sq ft): $941,000

Construction ($180/sq ft): $1,260,000

Engineering/Architect fees: $70,000

Legal/CPA/Permits/etc: $40,000

Cost of acquiring finishing equipment (security/signage): $30,000

Marketing/Insurance/and other misc: $30,000

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Total Project cost: $2,371,000

Hi all, I've got raw, commercially zoned land at an intersection near me that is perfect for 6,000 to 9,000 sq ft, 3-4 unit Retail Strip center.  I would need to buy 1 - 1.3 acres of this land to make this work.  I'm meeting with Commercial Lenders this week to discuss financing options.  I'm turning to this community for some guidance on the below general questions:

1)  Is this a bad economic time to be considering a new Retail construction? (even if there is demand for it in the area?)

2) For those that have done something similar in the recent past, besides the Land purchase and construction costs, what were the other big ticket line items from the project (Legal, Engineering, Architecture, CPA, etc)?  I'm trying to build an accurate Project estimate.

3) What was the sequence of events from Project conception to completion? (pay for engineering/architecture drawings, city approval, loan qualifying, land purchase, etc)

4) How long did it take from buying the land to a fully cash-flowing property? 

Thanks!

-Victor

 That's interesting, thanks John

 Thanks Mitch, thats what I figured.

I bought it at Market Value and it was pretty much turn key. Raising rents to market rate was the biggest value add. I figured the listing price would be based on comps (like when I bought it), but I was unsure because it is a pure investment property now and I thought maybe it would attract a commercial buyer (where NOI is king).

I have a Duplex with both units being rented on 1 yr leases. I bought it for $235,000 two years ago and have made some value-add improvements (like raising rents, adding washer/dryer,etc). This year the Duplex will have an NOI of $21,100. Assuming a 7% cap rate, this would put the property value right around $300,000.

So my question is - if I were to list this Duplex today, would the listing price be determined off of comparables, or off the NOI?

Hi, I have a Duplex in Lake County, IL that is has tenants in both units.  The Duplex is a single story, brick facade w/ attached garages and basements with washer and dryer.  The roof is about 4 years old.

What are some things that I for-sure need included in my Insurance policy for the property?  Also, anything that should be avoided?

I'm considering opening a Coffee Franchise in my area and would really appreciate below answers from people in this line of work:

1)  What are the exit options once you own a Franchise? (since you don't own the land or the business)

2)  How actively involved are you with the day-to-day Business operations?

3)  Everyone knows with Franchises that you pay Royalties to Corporate.  But are there minimum monthly cash amounts that need to be met for royalties?

Thanks!