At BP Con 2021 there was an auction for folks to participate in exchange for the generous donations received  A hand full of BP members donated their time to the winning bidders.Today I have the pleasure of the winning bidder flying into Portland Metro to spend a day and half with me going through all my development projects and take a deep dive into how we find them how we fund them and then how we execute.We will start at our 90 home project in Canby Oregon call Ivy Ridge Estates its perfect timing as phase 2 plat recorded this last week we have 4 specs ( now pre solds) in the process of going vertical and we are moving dirt laying pipe etc on Phase 3 so we will get to walk through and really jump into all aspects of how to build a subdivision from buying it from the owner who has owned the property for 50 years  go through entitlements  arrange partnerships  arrange  horizontal loans then vertical loans and on to marketing. 

Capabilities for tenants to pay through the site would be a bonus.

I’ve seen this hover around 3-5% of hard construction costs.Expense Reimbursements • Simply reimbursement for expenses pre-paid by the sponsors • Some examples are legal, due diligence including reports, etcPromote or Hurdles• This is essentially a bonus for hitting certain incentives • Example: 20% over an 8% IRR Hurdle and 35% over a 16% IRR Hurdle • There might be incentive-based fee for hitting certain markers when they refinance.

I currently work for Enterprise Truck Rental as an Assistant Manager, earning a target income of $58,000 (likely a tad more with bonus incentives and higher-than-normal commissions due to the fast growth of the division).

Bonus if there was an attempt at short-term rentals, either successful or unsuccessful.If this idea inspires you to do something similar, leave a comment!

The property manager will work and keep costs reasonable, make sure that the tenants pay for what they damage, etc. but if there is a need for the owner to be asked and approve something you can be the generous one.

The added bonus is that you have access to all of the other features too, like online rent collection and tenant screening.

Sometimes a generous offer is dangled to get your attention but then when under contract they come back and say it doesn't appraise, or needs thousands of dollars of work or some other excuse and your down to par or less.

You can still use FHA Financing to purchase a duplex with very generous loan amounts.  

Say hypothetically speaking, if I am allotted $150k of cost seg with bonus depreciation in year 1, would I be able to use it all in the first year?