All Forum Posts by: Marko Zlatic

@Steve G. 

Great suggestion

@James Wise Agreed

@Jeff Arndt 

This is what investing is all about. Creativity, hard work, and making the #s work.  

Good stuff

Hello All,

What are your best practices that you use to analyze a certain market or neighborhood in order to figure if you want to invest there or not? (I am looking at this from a macro level)

What are the trends that you look for? 

What are the resources that you use? 

I know this is a broad question because this question will be different for buy & hold, wholesaling, flipping, etc. 

Thanks in advance!

@Zoran M. Thanks for commenting...we have to stick together :)

I've recently started to market these lots to builders that work in the Kent/Brimfield area. I'd be happy to send more information to your father-in-law. We are targeting Condos and SF Homes for first time home buyers, so our ideal price point will most likely be in the high $100k's. 

All,

I would like to share a link to a recent Crain's Cleveland Business article that my company, Omni Property Companies, was featured in. You can view the article HERE.

Omni is developing 350+ luxury apartment homes in the Brimfield Township (Kent), Ohio area so I thought it would be beneficial to share this under the "Development" sub forum. 

The approval process alone has lasted over a year for this project! With that said, I'm happy to share my experiences and answer any questions regarding this kind of a project.

Best,

MZ

@Account Closed 

Welcome to BP. This site is a wealth of information that I think you will find very useful during your journey as a Real Estate Investor. 

Best of luck to you and feel free to reach out if you have any specific questions!

@Steve K I would tend to agree with your thought process. I was made aware that after the first few units the partnership will try to negotiate down the builder's amount of equity that he receives after the unit is completed.

Bump again. Interested to hear others' feedback. Thx again guys. 

@Min K. Thanks for your feedback. The builder is foregoing his fees but receiving 30% of the deal. My biggest concern was if he was receiving too much equity in the deal without having to put up any cash. 

Bump. Would like to hear feedback from others as well.

All, 

I would love to hear your feedback on a rental business model that was presented to me by 3 other individuals and their respective roles in this project. 

Individual 1 - Experienced Homebuilder

Individual 2 - Investor

Individual 3 - Investor/Property Manager

Their idea is to build spec Single Family Rental Homes with the ultimate goal of building the portfolio to 100 units over time. Individual 2 & 3 would put up the cash for the construction of the home and then dilute their interest by 30% upon completion to the builder who would assume that 30% as an equity partner. He is forgoing his builder fee, leveraging his connections, managing subs, etc. 

The ownership structure of 1 single family home would look like this after the deal is done:

Individual 1 - 30%

Individual 2 - 35%

Individual 3 - 35%

An example of a project they are proposing would be a 3/2 Single Family Ranch with attached garage that would cost roughly $105,000 to build (all in) and would be worth about $130,000 if they wanted to sell it immediately. They are anticipating rents of roughly $1100 for this market. 

Their goal for the investors is to refinance the house as soon as its occupied with a tenant and pull their initial investment out. They would then move on to the next project. Think of it as "planting seeds" of rentals. Rinse and repeat.

What are your thoughts on this model? Thank you in advance for your feedback.

-MZ