New Member - Kansas City & Chicago

Most Popular Reply

Max Wilhite
Member since 2024 · 225 posts · 86 votes
2y

Welcome, Khalid! Great to have you here. A new construction project in Kansas City sounds exciting! There’s a lot to learn and share, so feel free to reach out with questions or insights from your project. This is a great space to connect with others working on similar projects and to pick up useful tips for each stage of construction. Looking forward to hearing about your progress!

2Reply
See this reply in the discussion

36 Replies

Jump to latestLatest
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    1y

    Understood @Khalid Al-Amin...where in Chicago are you?

    I guess my next question is, why Kansas City?  Would you mind sharing some rough numbers for the deal?  (Land and construction cost, expected sale price, etc.)

    My last development in Chicago looked like this:

    Land = $300k

    Construction Cost $650k

    Holding Cost/Closing Cost/etc. $50k

    Profit roughly $100k

    That project was in Bucktown on the nw side of Chicago.

    [email protected]
    Quality Builders4.970 Reviews
    WebsiteView Page
    1Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    1y

    Welcome to BP and KC investing Khalid!

    Podcast Guest on Show #121
    1Reply
  • Khalid Al-Amin
    OP
    Developer · Kansas City · Member since 2024 · 20 posts · 11 votes
    1y
    Quote from @Jonathan Klemm:

    Understood @Khalid Al-Amin...where in Chicago are you?

    I guess my next question is, why Kansas City?  Would you mind sharing some rough numbers for the deal?  (Land and construction cost, expected sale price, etc.)

    My last development in Chicago looked like this:

    Land = $300k

    Construction Cost $650k

    Holding Cost/Closing Cost/etc. $50k

    Profit roughly $100k

    That project was in Bucktown on the nw side of Chicago.

    No problem. I'm currently located in Kenwood/Hyde Park. I think there's a lot of potential when it comes to Kenwood/Bronzeville. Hyde Park is a little tough since there aren't many (if any) plots of vacant land or vacant homes there.

    Why Kansas City? My family has a piece of land in KC. I wanted to make this my first project to get my hands dirty. I have almost half an acre plot of land located in a gentrifying/up-and-coming neighborhood. So we're doing a BTR construction project.
    • Land: $0 since we've owned it for a number of years.
    • We are working with a design-build architectural firm. He has suggested an 8-unit building.
    • 10,000 sq/ft @ $215 sq/ft = around $2.15M
    • Each unit will be worth around $268,750
    The current plot of land is currently zoned for a duplex without further approval from the city/community, but the zoning on the land can allow for up to 8 units by applying for a Special Use Permit through the city. We have a high likelihood of getting approved by following the city's guidelines and seeing what it is that the city would like—getting the city's buy-in along with the community's buy-in shouldn't be a problem. There are several city programs that we are taking advantage of as well—tax credits, funding, etc. 

    We've already been in talks with city members and have a relationship with some as well.
    1Reply
  • Khalid Al-Amin
    OP
    Developer · Kansas City · Member since 2024 · 20 posts · 11 votes
    1y
    Quote from @Andrew Syrios:

    Welcome to BP and KC investing Khalid!


     Thanks brother

    0Reply
  • Todd AndersonPro Member
    Real Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 176 votes
    1y

    Best of luck Khalid, and welcome to BP.   It's great that you give some info on your project.  That is a big lift for your first project.  I hope it all goes to plan.  

    I have done a few development projects for myself and it seems that in every one you hit a bump and wonder why.  I found working with investors from around the country it is much easer and safer to let builders do what they do best and I will stay on the investment side.  

    Please keep us updated on the process and completion.  Having a new building to rent out or sell the units will be the nice part after the construction is done.  

    [email protected]651-492-5652
    1Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    1y

    That's awesome @Khalid Al-Amin !!  Having the right partners on the design and build is what I have found to be the most important piece of the puzzle.  

    I am slightly confused about your numbers, though...is the $215/SF the construction cost?  Because it equals the total value of the units @ $268,750/unit so something doesn't make sense.  And then what will your funding look like?  Do you have an idea of the total tax credits?

    Establishing those city relationships can save a lot of time!

    [email protected]
    Quality Builders4.970 Reviews
    WebsiteView Page
    0Reply
  • Breeya Johnson
    Real Estate Consultant · Austin, TX · Member since 2021 · 36 posts · 21 votes
    1y
    Quote from @Khalid Al-Amin:
    Quote from @Breeya Johnson:

    Hey! That is super exciting. Where is your site at?


     It's near Lincoln High school and about a 2-minute drive from 18th and vine.


     I'm originally from KC and I love that area. Rich with history! Next time I am in town I will stop by and check out your work. Please let me know if you need any connections I have a huge network still in KC. It will always be home. 

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free