All Forum Posts by: Chris Martin

Quote from @Chris Martin:

@Jay Hinrichs pinged me so I am posting. Note that my experience is limited to NC, SC, VA jurisdictions, so keep that in mind when reading this or my other posts about solar.

Regarding "Solar farm land lease is generally very profitable," on the east coast at least, that is not necessarily true. There was a time, briefly (a few years), about a decade ago when some prime solar farm site owners signed favorable LTLs (Long Term Leases.)

Regarding "...about 50%+ of the option will not go through." The real numbers, per the U.S. Department of Energy under Contract No. DE-AC02-05CH11231, are not great: "Only ~20% of projects (14% of capacity) requesting interconnection from 2000-2018 reached commercial operations by the end of 2023. Completion rates are even lower for solar (14%) and battery (11%) projects."

Regarding Interconnection, keep in mind (same reference as the above link) "The typical project built in 2023 took nearly 5 years from the interconnection request to
commercial operations." Also, for ground-mount systems, most developers require 200-300+ contiguous acres, a relatively flat parcel, no wetlands or endangered species, and three phase power line access adjacent to the property. For distribution connected projects, the property needs to have close proximity (ideally adjacent) to a utility substation. Larger projects (e.g. 50MW+) generally interconnect with the transmission operator facilities, so you'll need transmission lines close by. For example, on Duke Energy's Warsaw site, collectively 87.5 MW, the developer built a new substation off Penny Branch Rd. since the generation facilities exceeded the existing distribution capacities. On Google Earth, use the two dates 4/2017 and 1/2018 to see the build-out. (Google Maps location)

I'm not sure what the "wholesale export rate" means. In general, developers will model revenue with SAM or an equivalent tool for non-dispatchable production. I am most familiar with fixed rate PPAs with rates that change by season (monthly summer, winter, shoulder) and time (hours on-peak, off-peak). The wholesale electric rates depend on location and time-of-day in 5-minute intervals. Wholesale rates generally average $0.02 to $0.05 per kWh.

Most west coast IPPs deploy solar with energy storage systems (ESS) to time-shift out of the low to negative margin day rates. The CAISO (California ISO) real time markets routinely go negative in summer from 10AM to 2PM (solar peak time), meaning the IPPs with non-dispatchable solar will be charged for putting solar onto the grid. During solar peak time, the CAISO market also routinely sees generation from renewables exceed the total grid load, which is quite incredible. See https://www.gridstatus.io/live for the real-time grid monitoring, status, and rates. 

@Jay Hinrichs pinged me so I am posting. Note that my experience is limited to NC, SC, VA jurisdictions, so keep that in mind when reading this or my other posts about solar.

Regarding "Solar farm land lease is generally very profitable," on the east coast at least, that is not necessarily true. There was a time, briefly (a few years), about a decade ago when some prime solar farm site owners signed favorable LTLs (Long Term Leases.)

Regarding "...about 50%+ of the option will not go through." The real numbers, per the U.S. Department of Energy under Contract No. DE-AC02-05CH11231, are not great: "Only ~20% of projects (14% of capacity) requesting interconnection from 2000-2018 reached commercial operations by the end of 2023. Completion rates are even lower for solar (14%) and battery (11%) projects."

Regarding Interconnection, keep in mind (same reference as the above link) "The typical project built in 2023 took nearly 5 years from the interconnection request to
commercial operations." Also, for ground-mount systems, most developers require 200-300+ contiguous acres, a relatively flat parcel, no wetlands or endangered species, and three phase power line access adjacent to the property. For distribution connected projects, the property needs to have close proximity (ideally adjacent) to a utility substation. Larger projects (e.g. 50MW+) generally interconnect with the transmission operator facilities, so you'll need transmission lines close by. For example, on Duke Energy's Warsaw site, collectively 87.5 MW, the developer built a new substation off Penny Branch Rd. since the generation facilities exceeded the existing distribution capacities. On Google Earth, use the two dates 4/2017 and 1/2018 to see the build-out. (Google Maps location)

I'm not sure what the "wholesale export rate" means. In general, developers will model revenue with SAM or an equivalent tool for non-dispatchable production. I am most familiar with fixed rate PPAs with rates that change by season (monthly summer, winter, shoulder) and time (hours on-peak, off-peak). The wholesale electric rates depend on location and time-of-day in 5-minute intervals. Wholesale rates generally average $0.02 to $0.05 per kWh.

Most west coast IPPs deploy solar with energy storage systems (ESS) to time-shift out of the low to negative margin day rates. The CAISO (California ISO) real time markets routinely go negative in summer from 10AM to 2PM (solar peak time), meaning the customers with non-dispatchable roof-top solar will be charged for putting solar onto the grid. During solar peak time, the CAISO market also routinely sees generation from renewables exceed the total grid load, which is quite incredible. See https://www.gridstatus.io/live for the real-time grid monitoring, status, and rates. 

Quote from @Jordan Ray:

Quote from @Elvis Witcher:

Hello Everyone,

Looking to get in contact with anyone who does land flipping or land wholesaling on the east coast. Primarily in North Carolina and Virginia. Currently in the process of developing a 10 acres in the Roanoke, VA area. In a few months I will be looking to purchase land between 5 to 15 acres. Any help would be greatly appreciated.

Thanks,

 @Elvis Witcher What is the status of your question? Did you get to connect with who you need? @Chris Martin Do you buy land/develop in Florida at all?

No.

@Lauren Powell, 

what vetting does the company you are working with (Velur Enterprises) provide? Like Matthew, I am only interested in the east coast with a 'small scale' new Qualifying Facility where I would retain ownership; ITCs, SRECs, etc. 

@David Schaefer what state(s) are these parcels in? In NC, SC, VA the entitlement process takes up to several years and potentially a lot of money for any implementation above 5 MW, which is why I favor the <500kW exemptions for "small scale" solar farms. As Mason points out, the more you do the more valuable the project.

Sounds like a good project.

Regarding: "I have a gutted carriage house on the back of my property, so my thought is to get my feet wet with house hacking by creating space for a longterm tenant. I also have significant equity in my home, which I believe gives me a HELOC option for acquiring my first property to BRRRR or flip once I feel educated enough to do so." I agree with @Chris Seveney that you have several advantages over the average rehabber. I've done a few Level 2 Alterations (Chapter 7) in southern Wake County and would recommend that you talk to your local planning and zoning department before jumping in, regardless of where you are (Wake, Harnett, Johnston counties.) They can also point you to what permits and inspections you will need to get to CO (Certificate of Occupancy).  

Quote from @Travis Oneill:

Hello Everyone,

I hope you're having a great day!

My name is Travis. I'm 29, and I've never owned a house before. I'm looking to buy a house in Raleigh, North Carolina, and I wanted to figure out all the monthly expenses, including utilities, that I'll have to pay for when owning a home.

Below is a list of monthly expenses I've identified so far. I'm wondering if I'm missing anything:

•  Mortgage (20% down, so no PMI)
•  HOA
•  Electricity
•  Gas (None, as the new construction house has an electric stove—everything is electric)
•  Water Bill
•  Camera Security System
•  Internet
•  Lawn Care
•  Regular Maintenance

Questions:

•  Will I need to pay for trash?
•  Will I need to pay for sewer, or is this included in the water bill?
•  Am I missing anything else?

I appreciate any help.

Thanks!

If you are in the city of Raleigh, the water bill includes trash and sewer. You will also be paying for:
- Recycling
- Stormwater
- Yard Waste
- Water Base Charge
- Watershed Protection
- Water Infrastructure Replacement Charge
- Waste Water Base charge
- Waste Water Infrastructure Replacement Charge

The "overhead" charges currently total $49.94. Below is a bill from a house I sold earlier this year. I took the name and address off, but you can see the line items and charges as listed above. 

If you are outside the city, many houses have well and septic. There are no monthly charges for well and septic, other than minimal electrical usage. Make sure you get a septic inspection before closing since replacement cost can be expensive. 

This post is meant to be constructive. 

Regarding the "someone told me" thing, that shows you haven't done your homework. 

Have you thoroughly read the recorded Declaration and Covenants for the parcel you are considering? Have you read through all the HOA meeting minutes over the past two years? How many HOA liens in the past two years? How many foreclosures? Those metrics really matter. If there is an HOA, then, yes, you will need to deal with the HOA. In case you don't know, the HOA boards are made up of homeowners and lot owners in the subdivision. I have been on several HOA boards. Some of these boards have members that are total BS and some have members who are really impressive. And, yes, some failed subdivisions lose a LOT of value for landowners, all across the country. 

Sounds like you are in the Poconos and you are trying to flip vacant land, governed by an HOA, without a defined buyer. Good luck with your venture.

Anything is possible. Buy with seller financing with terms that allow a 48-month principal payment of $150,000 and you've achieved your first question. Keep in mind, that's a $3,125 principal payment per month. If you can do that, fine. But also realize the seller will want (most likely) some interest as well. Also make sure your contract allows for obtaining financing after the initial seller financing term. Depending on the desperation of the seller, the terms of the financing may change. 

You don't identify what state you are in so make sure your seller financing terms don't conflict with your state statutes. More importantly, we don't know 1) your capability to pay 2) the seller "requirements" or needs, 3) property condition / collateral valuation and 4) why you don't just buy traditionally. 

Regarding "However, I'm starting to think I can get much more selling them individually to owner/occupants." I've listed my properties on MLS (via broker - I am not a broker) and sold to OO in 2024 and 2023. I have no regrets.

Selling by portfolio or selling the LLC is not currently in favor.

My 2 cents.