Crowd Funded New Construction Diary

85 Replies

Sure, the first raise for 1122 Linden was all equity.  This is inefficient for two reasons.

1) You have to raise a lot more money, so the bar is higher.

2) The way we set up our proforma, we are paying a preferred return to all equity investors.  We're paying this pref while we're doing a lot of the non vertical construction where we have to wait on 3rd party vendors or City officials.  This just makes the money more expensive.

So for future raises, we are going to try and raise an equity component for the land because we need cash for closing the land and equity for any potential loan, crowd funded or not.  We'll raise a debt component for the vertical construction which will be secured by the land equity, and cost less than equity.

UPDATE:

So we go out to pull the old driveway and slab from 50 years ago on this lot and there is still an active gas line on it!  Even though there is no service, you still need to have the lines pulled.  This was a bit of a surprise to me because I wasn't expecting there to be an active line on a lot that hasn't had a structure for decades.

This is a big deal though.  You want to make sure all of the utilities are pulled and you get an OK from your local utility before doing any demo work, even pulling up a driveway.  Ripping open a gas line can be life threatening.

Originally posted by @John Blackman:

Ripping open a gas line can be life threatening.

Same with buried power. And if you really want an uprising, buried fiber.  

Beyond the utility providers, check HERE.

 

@Derek Carroll  

We have done both where we have it under contract and where we have already purchased the land.  For iFunding we need to put our equity in at closing of the raise.  It many cases we have already spent that $10k in prestart expenses which count as equity.

We received our notification from the Gas company one day after they said it would be complete that it was all clear.  We had some people parking on the lot, so we left signs up for one day and they listened.  It was clear today and we have scraped off the old remains of the foundation and driveway.  We've got a tree in the back that is not protected and will need to come down before we can start the forms for the foundation.

After clearing the lot and getting ready to pour the foundation, our builder discovered a slight discrepancy in the foundation plan which required a small change from engineering.  It was the difference in using a concrete back deck or a wood one.  We went with wood because it looks nicer in my opinion, is cheaper, and has a smaller impact on our impervious coverage ratio.  Win-win all around. 

With that little item taken care of, we started forming the foundation last week and we are making good progress this morning.  Today I even have a video for you.

Pre-Start last week:

https://www.youtube.com/watch?v=LuWWGmx56ZM

This morning:

https://www.youtube.com/watch?v=9ADy0XTkb7E

This is WEEK 1 of an active project.  We're aiming to get the following items completed this week.

  • Form up the foundation
  • Dig exterior foundation beams
  • Complete the plumbing rough
  • Termite treatment

Next week we will add steel, seal the foundation in plastic and hopefully pour assuming we can find a time slot with our concrete provider.

We are working off our first draw which is only 1/5th of the land purchase price so our loan to equity ratio is a tiny 20%.

Congratulations @John Blackman  and @Bryan Hancock  on getting this deal together.

And thank you for sharing all of this information. This is an awesome thread and I can't wait to see how it plays out.

Good Luck!

WEEK 1

At the end of the week the forms have been completed.  We were waiting on the form survey which was completed before digging beams.  You don't want to commit to any of the hard work until you know the form survey is correct and you're building the right size foundation and house.  Next week we should be able to get the plumbing rough in after the beams are dug which is happening today, sorry no photo of that, check in next week.  There is a small chance we could pour next week, but everything would have to go perfectly.

Completed this week:

Forms complete

Form survey complete

Thank you @John Blackman  and @Bryan Hancock   for sharing your roadmap from start to finish! Way Cool.

I just found these threads and your listings of "Feasibility" action items and "post Feasibility" next-steps' saved me tons of time from documenting this for an Investment Summary today!

'Great stuff for anybody considering this field, that it all starts with modeling your desired profit margin and working backwards within the market fundamentals and city codes to see if you can get there with current sale prices without speculation. 

You also exposed many of the specific COA "tiger pits" to avoid! Like FAR, (McMansion) , Legacy tree, impervious cover, Flood Plains, setbacks, etc...You didn't even mention Black Capped Vireo's or Salamanders!

Overall a great reminder that this is a Spreadsheet business and that the way you eat an elephant is one bite at a time!

Cheers,

WEEK 2

We dug the exterior beams this week.The ground is especially hard and the plan calls for deeper beams than most due to the large number of corners in the slab design which has been slow moving.  We are still aiming to pour next week.

Complete this week

  • Dug beams

To Complete next week

  • Plumbing rough
  • Install steel
  • Termite treatment
  • Pour foundation

Blocking Issues

  • None

Pictures

WEEK 3

This has been a bit of a lost week.   Our plumber is backed up and his scheduled slot was Friday.  It rained.  He is scheduled to do the plumbing rough on Monday.

WEEK 4

Overview

The plumbing rough has been completed, but our city inspector did not show on Wednesday as planned.  So we will not be able to install steel and pour until that inspection is done.  We do have a nice video this week though.  Hopefully we'll have some poured concrete next week.

Work Items
Complete this week
  • Plumbing rough complete
To Complete next week
  • Install steel
  • Termite treatment
  • Pour foundation

Blocking Issues

  • None

Video

https://www.youtube.com/watch?v=ACrKp2JHHxc

WEEK 5

We had a new problem I haven't faced before this week, so maybe you can learn from this event.  We were all ready to get our foundation inspection and the city came out and told us we were going to pop the McMansion tent based on our form survey.

Well it turns out surveyors sometimes make mistakes and they had labeled the finish floor elevation a foot higher than it was supposed to be.  So on the ground our foundation was one foot lower than on the survey.  So the city inspector says fix your ____ and call me when it's done.

Good thing for us we have a survey company that is really fast.  In most cases this might take a week for the surveyor to find a time to visit the site, make the change and get you a new survey.  Ours had it done the same day, but we still had to wait for the inspector to come out again which he did. 

However by the time we ironed out that wrinkle, it rained for the rest of the week.  This is a perfect example where even a one day delay can turn into a 1 week delay.

Lesson:

Double check the paperwork.  It's tempting to think that just because you paid for something it's done right.  People are not perfect.  Inspect everything.  Trust and verify.

WEEK 6

The plastic is installed and the steel is on site, the termite treatment is complete, the pre-pour inspection is scheduled for Monday 9/29 and the pour is scheduled for next Tuesday 9/30.  So next week I should have some pretty slab pictures.  For now I've got steel, plastic, and forms.

Complete this week

  • Plastic installed
  • Steel delivered
  • Termite treatment

To Complete next week

  • Install steel
  • Pour foundation

Blocking Issues

  • None

Video

http://youtu.be/yuGeAERGYA0

WEEK 7

Overview

Slab poured, and framing lumber is scheduled for delivery on Monday.  We're going vertical next week.

Work Items

Complete this week

Slab poured

To Complete next week

Lumber delivery

Start framing

Blocking Issues

None

Schedule
1/31 - Target date to do survey if title comes back in time. - COMPLETE
2/3 – Survey performed - COMPLETE2/4 – Survey docs delivered, feasibility start - COMPLETE

2/21 - Have site plan rough ready and approved by COA arborist - PARTIAL, waiting on arborist

2/24 - Complete material submission for iFunding - COMPLETE

4/21 - Designs complete and handed to engineering - COMPLETE

5/13 - Engineering complete - COMPLETE

5/29 – Permit paper is ready to submit - COMPLETE

5/30 - Submit permits to the city - COMPLETE

6/25 - Submit response to city feedback on permits - COMPLETE

6/30 - Permit approved - COMPLETE

8/8 - Gas lines removed, slab demolished, start foundation - ON TRACK

8/11 - Tree removed - COMPLETE

8/29 - Foundation complete - DELAYED, plumber behind schedule, and rain delays

10/10 - Framing complete

1/31 - Complete construction

3/31 - Units sold

Pictures

Video

http://youtu.be/wqtWF8K_Y-A

Week 8

Overview

The first floor framing is complete.Next week is the second floor!

Work Items
Complete this week
  • Lumber delivered
  • First floor framed
To Complete next week
  • Install trusses
  • Start on second floor framing
Blocking Issues
  • None
Schedule
1/31 - Target date to do survey if title comes back in time. - COMPLETE 2/3 – Survey performed - COMPLETE 2/4 – Survey docs delivered, feasibility start - COMPLETE

2/21 - Have site plan rough ready and approved by COA arborist - PARTIAL, waiting on arborist

2/24 - Complete material submission for iFunding - COMPLETE

4/21 - Designs complete and handed to engineering - COMPLETE

5/13 - Engineering complete - COMPLETE

5/29 – Permit paper is ready to submit - COMPLETE

5/30 - Submit permits to the city - COMPLETE

6/25 - Submit response to city feedback on permits - COMPLETE

6/30 - Permit approved - COMPLETE

8/8 - Gas lines removed, slab demolished, start foundation - ON TRACK

8/11 - Tree removed - COMPLETE

8/29 - Foundation complete - DELAYED, plumber behind schedule, and rain delays

10/10 - Framing complete - DELAYED

1/31 - Complete construction

3/31 - Units sold

Pictures

Video

http://youtu.be/1XQkb0xKaa4

Looking good! Not knowing anything about Texas and your weather (except I know it gets HOT in summer) what is the rainfall there like in winter, will you have a lot of delays? Though once it's enclosed it should be ok right? 

When it does rain in Texas, it's hard and fast.  So we're not likely to have long stretches of rain.  Most of it happens in the spring too, so we should be ok.  Rain usually doesn't delay us that much.

Week 11

Overview

This week we were actually rained out most of the time, but this is a bit of a late update so we have last week's framing progress in here too.

We spent this week finishing out the core framing and doing a window review. Next week we should get onto siding and window installation. The sewer yard lines were installed, but have not been inspected yet.

Work Items Complete this week

  1. Complete rafters
  2. Stairs installed
  3. Roof supports and garage walls installed
  4. Sewer yard lines complete

To Complete next week

  1. Start cornice
  2. Windows delivered
  3. Start wall sheathing and roof decking
  4. [stretch] start siding

Blocking Issues

None

Schedule

8/29 - Foundation complete - COMPLETE

10/10 - Framing complete - COMPLETE

2/31 - Complete construction

4/31 - Units sold

Pictures


Video

http://youtu.be/53253GiCTWE

Week 14

Overview

Steady progress on the exterior, we should be onto mechanicals next week.

Complete this week

  • Windows 65% complete
  • Started Tyvek
  • Started siding
  • Complete roof decking

To Complete next week

  • Dry in roof
  • Complete tyvek and siding
  • Start mechanicals

Blocking Issues

  • None

Schedule

1/31 - Target date to do survey if title comes back in time. - COMPLETE

2/3 – Survey performed - COMPLETE

2/4 – Survey docs delivered, feasibility start - COMPLETE

2/21 - Have site plan rough ready and approved by COA arborist - PARTIAL, waiting on arborist

2/24 - Complete material submission for iFunding - COMPLETE

4/21 - Designs complete and handed to engineering - COMPLETE

5/13 - Engineering complete - COMPLETE

5/29 – Permit paper is ready to submit - COMPLETE

5/30 - Submit permits to the city - COMPLETE

6/25 - Submit response to city feedback on permits - COMPLETE

6/30 - Permit approved - COMPLETE

8/8 - Gas lines removed, slab demolished, start foundation - ON TRACK

8/11 - Tree removed - COMPLETE

8/29 - Foundation complete - COMPLETE

10/10 - Framing complete - COMPLETE

2/31 - Complete construction

4/31 - Units sold

Pictures


Video

http://youtu.be/KXeUwSCr54A

@John Blackman  thanks for this awesome thread. I just stumbled upon it today but it was a great read. I look forward to keeping track as this progresses. 

1122 Linden Project Status - 12/05/2014


Budget Status: GREEN
Schedule Status: GREEN
Construction Week: 15
Estimated CO Date: February, 2015
Estimated Market Ready Date: March, 2015

Overview
The siding should be completed over the weekend and we can move onto interior mechanicals next week. This is typically where we can have some slowdowns with inspections and fixing punch lists and then waiting for re-inspections. We should be able to get the bulk of the mechanical work done in the next two weeks. Lots of great progress this week on the exterior, and no blockers.

Work Items Complete this week
• Install windows
• Tyvek complete
• Roof dried in
• Siding is complete
• Processed another draw this week
• Plumber started top out

To Complete next week
• Plumbing top out
• Start HVAC
• Start electrical rough
• Install shingle roof
• Start exterior paint prep

Blocking Issues
• None

Schedule
1/31 - Target date to do survey if title comes back in time. - COMPLETE
2/3 – Survey performed - COMPLETE
2/4 – Survey docs delivered, feasibility start - COMPLETE
2/21 - Have site plan rough ready and approved by COA arborist - PARTIAL, waiting on arborist
2/24 - Complete material submission for iFunding - COMPLETE
4/21 - Designs complete and handed to engineering - COMPLETE
5/13 - Engineering complete - COMPLETE
5/29 – Permit paper is ready to submit - COMPLETE
5/30 - Submit permits to the city - COMPLETE
6/25 - Submit response to city feedback on permits - COMPLETE
6/30 - Permit approved - COMPLETE
8/8 - Gas lines removed, slab demolished, start foundation - ON TRACK
8/11 - Tree removed - COMPLETE
8/29 - Foundation complete - COMPLETE
10/10 - Framing complete - COMPLETE
12/19 - Mechanicals complete
2/31 - Complete construction
4/31 - Units sold

Pictures

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