1st Time CRE Investor Seeks Recommendations on How to Start the Process.

1st Time CRE Investor Seeks Recommendations on How to Start the Process.

Investor · OH · Member since 2015 · 36 posts · 4 votes

Dear Community,

I am considering developing a 1 acre rural parcel, zoned Local Commercial, but I am struggling with how to start (highest & best use study),  and where to find qualified builders. Is there a list of steps and/ or a flow chart I should follow?  I wish to construct (3-4) small, stand alone, multi-use units, housing 1-2 retail businesses on the ground level with the same number of offices on the 2nd floor. I believe it may be possible given the local zoning requirements.  What are your suggestions?

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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    OP

    1.  Take it to an engineering firm.  This is going to cost you $150,000 on up.  Have them do a cost estimate also.

    2.  Take it to an engineering firm.  Give them the footprints of the buildings and have them do the property layout, but not the building design.  Let's say it costs you $30,000.

    3.  If you can't afford the above, you have to get dirty and learn.

    a. Develop a checklist. Use the above lookup, to search CRE project posts. Read books, watch podcasts, join facebook groups, watch youtube.

    b.  Work on Estimates on the property.

    c.  At the same time find some contractors in your area and give them the footprints of the buildings and usage.  Ask them to develop a quote.  

    Where I'm at this project would already not fly.  Minimum 2 acre lots.  Zoning would not be allowed for my type of business.  Would need to be what we call Highway Commercial to work in our one town and Industrial 3 or Commercial 2 with a Special Use permit.

  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    1y

    what permitted use will generate the highest rents and lowest cap rate?

    I would not recommend raw land as a 1st investment. Why not buy something existing?

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