Cleveland, OH · Member since 2016 · 3 posts · 1 vote
I've contracted with an architect to design the prefabricated/modular high rise, and will have it overlooked by a team of civil engineers.
My next steps would be to submit the proposals to city officials/zoning. I've ran the numbers at a potential (12 - 18% Cap Rate).
Due to my age and lack of a 30% down payment, bank loans are a no.
Along with my financing question, could someone give me the simplified steps of the development process for a multi-unit building all the way from conceptual design to groundbreaking?
Thank you,
Viante Fruit
Contractor · College Station, TX · Member since 2015 · 113 posts · 38 votes
9y
Viante Fruit ,
So the first thing I would do is over prepare for building this thing. Document everything. Make an item by item estimate and know roughly to the dollar how much everything will cost.
What you don't have in capital, make up for it in leg work. If everything pans out, you should be able to find a private investor. Start connecting on here for sure! Way to go man! Good goals
Entrepreneur · Frisco, TX · Member since 2015 · 88 posts · 44 votes
9y
How about get 100% owner-financing on a different property first? Then, you can show that you have experience & you'll increase your income if you need to put down a percentage towards doing a project like this.
I'm not in a position to give advice on developing, but focusing on increasing your income (and savings) will only help your situation.
Cleveland, OH · Member since 2016 · 3 posts · 1 vote
9y
Disregard that last question, with my $10,000 I could develop a strong pro-forma to showcase to private investors or real estate trusts. Potentially?
I really don't see a huge hindrance, if the numbers look good.
Contractor · College Station, TX · Member since 2015 · 113 posts · 38 votes
9y
Viante Fruit ,
So the first thing I would do is over prepare for building this thing. Document everything. Make an item by item estimate and know roughly to the dollar how much everything will cost.
What you don't have in capital, make up for it in leg work. If everything pans out, you should be able to find a private investor. Start connecting on here for sure! Way to go man! Good goals
Investor · Tampa, FL · Member since 2015 · 293 posts · 175 votes
9y
Jumping in to build a high-rise is a bold first step! Educate yourself as much as possible before hand on the development or you're sure to encounter unexpected roadblocks. Best of luck!
Investor · Member since 2016 · 54 posts · 21 votes
9y
Building a new multifamily property can be very expensive. It would probably be easy to get financing if you were building to sell the properties rather than rent for a greater chance of a faster return for your lenders/investors. Also permits for multifamilies can be very expensive depending on the area you are in. Adding sometime tens of thousands to the cost. Wish you the best of luck.