All Forum Posts by: Nico Salgado

Thank you to everyone who posted here and a big thanks to @George Yu. This is why Bigger Pockets exists. 🙏
I love the business model.

@Greg Dickerson Thanks again! I will reach out to my architect and building department tomorrow!

@Greg Dickerson wow! Thank you so much for taking the time with me. Your expertise is very much appreciated. So I have an architect that will be meeting with the building commissioner this week to begin the feasibility report. I will begin contacting utility companies ASAP.
Do you know of any civil engineers or commercial contractors in my area? 

Hey everyone,

Anyone familiar with the process of underwriting a new construction project for an apartment building? I am stuck on offer price and building costs. Do I need architectural plans to get cost of construction or is there a cost per sq. Ft I can use as a guide? I live in Long Beach NY. 

Thanks!

Nico

@Dan Handford Thank you so much. It makes total sense. Any advice on where to begin networking? Some other people on this thread recommended speaking with other apartment complex owners. I have some people close to me that I will speak with as well. 
Do you typically offer a certain interest rate, percent of profit, ownership or a combination?

@Dan Handford Thanks for the help! Are you suggesting I start acquiring private money now? Or should I wait until I know it’s a good deal? Then move full steam? Or should I have investors invest in my company as opposed to this particular project? I was thinking of collecting the funds now and personally guaranteeing them... for example, I could collect 200k at 8% and if I don’t use the funds I give it back plus the interest. That way I’m only on the hook for the 16k or 8% interest... 

William, excellent advice. I will accept and take action exactly as you recommend. So this is will be a new construction deal. The current property has 7, attached townhouses, triplexes and quads. The property is prime, right on the ocean. The houses are dilapidated and in need of repair. Due to the FEMA code, they will have to be elevated. What I would like to do is knock them down and rebuild an apartment building. I spoke with a few architects and found one I like that is very well known in the area by the commissioner of buildings. I'm going to have him complete a feasibility study to show what can be done on the property. My problems are that I'll have to pay for the feasibility study to find out if it's even worth it. If it is worth it, I have to get the property at the right price. Currently there are 4 different owners of the 7 buildings. I spoke with all of them and they are all open to selling. The fine XT problem will be getting help with the down payment. I have a hard money lender with good rates lined up but the down payment will be something I cannot float on my own. I'll have to pitch it to serious lenders.

Thanks for the info on webinars Greg! I’ll watch them today. Yes my plan is to package the deal and pitch it to investors. I’m very grateful for all the advice and guidance. 

Thanks Giufre excellent info. I was unaware of the requirement to occupy the property. Ok SBA is out. 

Thanks Joel! I’ll certainly hit you up if crack the code. I have been searching around the forums. And your right. This topic is for people like me who’ve never really done a deal. Have you raised any money? Perhaps I’m looking at it the wrong way.. my plan is to use hard money for the loan but to come up with a down payment I’ll need help. I could be over leveraging. Has anybody ever gotten a business loan? Like an SBA loan to use as a down payment?