Crowd Funded New Construction Diary

85 Replies

1122 Linden Project Status - 1/9/2015

Budget Status: GREEN


Schedule Status: GREEN
Construction Week: 18
Estimated CO Date: March, 2015
Estimated Market Ready Date: April, 2015

Overview
We passed the electrical inspection. Plumbing valves are being replaced this week due to some minor vandalism which has pushed that inspection off to next week. HVAC, plumbing and framing inspections will be done concurrently. We will be issuing a new draw next week.

Work Items

  • Complete this week
  • Security pre-wire
  • Installed shingle roof
  • Metal roof on garage
  • Passed electrical inspection
  • Exterior paint complete

To Complete next week

  • Issue new draw
  • Pass remaining mechanical inspections
  • Insulate pending inspections
  • (stretch) Start sheetrock

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 - COMPLETE
3/15 - Complete construction
5/15 - Units sold


Pictures


The project looks good!  Is it on, under, or over budget?  The original estimated sell date was 12/31.  Have prices continued to rise in Austin?  Will the delay actually help with a higher sells price (assuming  prices are still rising)?

Thanks

It may be a blessing that the timelines have slipped a bit Mark.  Selling into the spring cycle should help out a lot.  There was a bit of a rough patch leading up to the elections late last year.  

Unfortunately estimating anything with the city is tough to do.  We're doing fine on budgets, but we're hurting a bit on schedule.  This is a constant tradeoff that is hard to manage.  

Loving that look! Can't wait to see it finished. 

1122 Linden Project Status - 02/13/2015

Budget Status: GREEN

Schedule Status: GREEN

Capital Provider: iFunding

Construction Week: 23

Estimated CO Date: March, 2015

Estimated Market Ready Date: April, 2015

Overview

We've completed most of the sheet rock at this point. Next week we should mud the rest of it, start the decks, and pour the driveways.

Work Items

  • Complete this week
  • Sheetrock
  • Order cabinets

To Complete next week

  • Begin pouring driveways
  • Decks
  • Fix broken window

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 - COMPLETE

3/15 - Complete construction

5/15 - Units sold

Pictures


Video

http://youtu.be/VzFGPv34ywM

@Bryan Hancock @John Blackman   It's looking great guys! I am hoping you can answer a question about your crowdfund. When funding with equity I'm guessing that you can't guarantee any type of rate return. When funding with debt can you have a fixed rate of return for your investors? I'm guessing that it would probably be a lower rate?

Jason we cannot guarantee anything.  

We offer a targeted return based on our projections.  Even with debt there are no guarantees.  It depends on the offering, but you could offer monthly payments or a simple return on the back end that is still in first position, although usually if you are going to offer debt, you should offer payments in my opinion.  The full offering details are in the securities documentation which is very exhaustive and covers all of the possibilities and disclosures for gains and losses.

What is the latest completion date?

1122 Linden Project Status - 03/27/2015

Budget Status: GREEN

Schedule Status: YELLOW

Capital Provider: iFunding

Construction Week:30

Estimated CO Date:May, 2015

Estimated Market Ready Date:June, 2015

Overview:

We have a short exterior and interior video walkthrough today. The builder met with the engineer about the drainage issue near the front door. The issue being that the driveway is higher than the entrance so we can't slope the concrete from the driveway to the door without creating a flood hazard. He's reviewing and providing us a set of plans to add drainage and take liability. We will be starting tile next week, and we can't get the painter in until the tile is in place.

Tile supply company does not have our selected tile, so we will need to make new selections to keep up with our schedule. The designer is on top of it and will find an alternative.

Given where we are, the estimated CO date has slipped to May and I am changing the schedule status to yellow.

Work Items

Complete this week

  • Pour driveway approach
  • Molding /door casing is complete

To Complete next week

  • Cabinets are to arrive and install
  • Finish fence
  • Start tile
  • Measure granite tops - ordered
  • Form driveway approach
  • Blocking Issues
  • Purchasing tile - tile company doesn’t have selected tile in inventory.

Schedule

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 - COMPLETE

5/15 - Complete construction

7/15 - Units sold

Video

http://youtu.be/X-TEzNBNqIo

http://youtu.be/FD5Xm0bQOXY

Have you had any other projects go 6 months or more past the the original completion date? Whats the expected investor IRR on this now?

This project got started in August which was after we wanted it to and that pushed our schedule back.  Construction times have also been elongating as well, longer than they were last year.  We're at 30 weeks now, and I think it's going to take another 10 weeks to really be done.

Our other projects are also suffering delays.  Our schedules are getting stretched which is indicative of a heating market.  We take full responsibility for the schedule and do the best we can, but delays do occur.  We do our best to document and communicate them for full transparency.

You still think investors will see the 18% IRR?

WEEK 38

Overview:

It has been raining for three weeks straight with another week of rain ahead of us, which is delaying exterior work. With the interior paint complete as well as most of the interior door trim complete, we should be able to start fixtures this coming weeks.

Work Items

Complete this period

  • Order counter tops - being fabricated
  • Started to install countertops and sinks
  • Painter finished interior
  • Order garage door
  • Order fixtures (lighting and plumbing)
  • Start grading for landscaping and decks
  • Order water meters
  • Rough clean
  • Order wood flooring

To Complete next period

  • Complete countertops
  • Start wood decks
  • Complete grading for landscaping - weather permitting
  • Start kitchen backsplash
  • Start installing electrical and plumbing fixtures
  • Start HVAC trim out
  • Complete sewer and yard lines

Blocking Issues

Weather

Schedule

Estimated completion date is likely early July

Pictures

How close are you to hitting your original budget?  Within 5%?

Thanks

So far we're not over budget, but we are over on the schedule.

Almost...  Our builder is definitely over schedule.  We have covered the yard lines and are working on the finish out, but that is the time consuming detail oriented process.  It's at least another month. 

I see that you guys injected extra capital to move this project alone.  It says that this will not effect investor return.  Glad to hear it.  Thanks!  Just curious as to how this will work since the deal has a profit split component to it.  Is the extra injection of money not going to count toward the projects cost?

Thanks

The City of Austin took a three day training this week, so we are scheduled for our first CO inspection today which we are sure to fail.  They never let you pass the first time.

The paint touch up is complete and we're getting all of the appliances installed.  We're onto punch now, but the project overall has been woefully behind schedule.  @Bryan Hancock alluded to this in his post.  I was honestly surprised at how short that tipping point was when a builder goes from N to N+1 projects which incurs significant lags simply because they don't scale their operations and become their own bottleneck.  Growth is hard, which is not an excuse.  We are responsible for the project.  I'm hoping we can finalize it and have it on market in a few weeks.  It looks great, but did take too long.

Thanks so much for the thread, read pretty much the whole thing. It has opened my eyes to so much more that I didn't even think of. BTW great last name @John Blackman  

I know you answered a few months ago, but are we still on budget even with the excessive construction time?

After several construction setbacks, this project is finally complete and on the market.  It certainly went longer than expected.  Admittedly it was a problem of scale.  Our builder just had too many projects going on to keep this one on schedule.  The results look terrific and we will still do well on the returns, but the timing will affect yield.

We received our Certificate of Occupancy last Thursday. Our realtor has suggested building a privacy fence in the front so you can't see directly into the living room. So we will start on that Monday after a weekend of showing the property.

The pictures came out great.

Beautiful!  What's your current expected exit PSF, vs. what you thought when you started?

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