All Forum Posts by: Adam Lacey

Hi @Hannah Leiker, this may be a stupid question, but are you sure that means that the ADU has to be directly connected to the main? If you are stubbing it out from the main dwelling, would that be considered "separate utilities"? Gotta love when municipalities leave vague statements that are open to interpretation. I would just call someone at the City to discuss. Most of the time, they're open to doing so.

@Rick Gonzalez send me a message with your email address if you still need examples.

Hey @Kyle Woodruff, in addition to the tax and insurance as @Brian Burke mentioned, your vacancy (3% if I calculated that correctly) and your repairs ($1,440 annually) seem low to me. Is electricity factored in?

@Aaron Signore that sounds awesome. Good luck!

Hey @Jonathan Bell, just keep networking and it'll happen. A few ways to increase odds are 1. Attend local meetups 2. Join a group coaching program or mastermind.

When you do meet people, focus on providing them value and you will be more likely to attract the right partners. Meanwhile, keep learning and networking. Goof luck!

I would use leverage (and possibly even a partnership) to buy a larger asset, but it really just depends on your personal goals and appetite for risk.

Hey @Aaron Signore, that sounds like an awesome project. Where is it located?

Is the basic idea that you do all the work and someone else brings all of the capital or will you be splitting up duties?

I haven't had this exact same setup, but with my deals we usually allocate the equity splits based on roles, responsibilities and what you are bringing to the table. ex. Loan guarantor x%, underwriting x%, Capital x%, due diligence x%, construction management x%, asset man. x%...etc.

@Uday Kumar you can check this site to determine if it's in a floodplain. https://msc.fema.gov/portal/ho...

@Joshua Janus as far as projections go, cap rates and future rents are usually going to be your biggest variables. When co.paring properties though, I'm usually focused on LP returns IRR, CoC, Average annual return.

@Uday Kumar make sure you know whether that creek is a FEMA regulated floodplain. If it is, take a close look at the limits and discuss options with a qualified engineer. Not a huge deal, but could easily add $45k to your project if you need a CLOMR/LOMR.

Teach out if you have any questions.