All Forum Posts by: Jared W Smith

Sounds like a decent plan. Please be sure to post back here with the progress and turn out. @Erica Redcross

Your welcome @Erica Redcross. That is a pretty extensive upgrade for a SFH. It sounds like you've already solicited bids from contractors. What are they bidding off of if the plans have not been generated? Where is the property located?

No. Just No. 

For large scale homes/buildings, there's so much modifications needed to make it usable making the container into just a facade. It's been discussed in the Architectural realm for years. Cool... yes. Practical.. No.

Seems like a generic service most architects/engineers already offer, just on a more personal level. I'd suggest contacting a local architect otherwise you may be stuck with a back-of-house "designer" whom the contractor hires and you would not really have someone representing your best interest. @Erica Redcross 

NOTE: If dealing with suburban/urban areas, you will need to deal with the municipality for permits which may require an architect/engineer anyway.   

@Scott Wolf, Thanks! This was the simpler option I was figuring. Yes, I have an attorney to speak with when forming LLC and putting an agreement together. But if I do need a recommendation, I'll let you know.

@Aaron Schump Another architect here. I purchased an estate sale SFH for my family. Finishing up the reno this year and will utilize the equity to get an investment property hopefully in 2020.

All the best @Edgar Martinez. As I've said to many, get it done ASAP. Life happens and delays things. 

I agree soo much @Mala S., we bring a lot to the table in REI as architects.

Hello BP, 

I've been having some trouble searching for a starting point and what steps are involved to correctly pool money for funding / financing REI. Initially I looked at a REIT, then crowdfunding and then RE fund and REI group before my head started to swell. SEC and attorney requirements started to make setting this up very costly.

I have several of my friends that are looking to invest in real estate. None of us may fit the technical definition of sophisticated investors, however myself and one other have real estate experience. I have access to attorneys at little to no cost to me. What is the most inexpensive way to structure things? Is it best to just set up a partnership with them all no matter how much they contribute? Operating agreement for everyone? 

Looking for advice..    

@Jermaine Chad Ingram- This is a unique situation and unless she wants equity in the 10-15 properties, she may ask for an initial fee for the first one and then a fee for each other one that will be built. This is typical and allows for her to be paid at the front end and not after the asset has started making a return. As @Nik Moushon said, it's risky and ultimately falls on what he/she wants as the architect. It would be years before you completed even the first 5. In this circumstance she may not want equity, she may not believe in your plan. What ever the case, you're better off asking her about what she wants out of the deal and put a fee per house AND an equity stake on the table and see where she steers. 

Personally, I'd take an initial fee and then a fee for each of the others. 

Lastly, it's a very unique design. Make sure you have a market for this type / style of house. Not many people want to have to come out of their house to get to their kitchen. Unless it is an in-law suit type. I am not sure.  

@Jermaine Chad Ingram, @Edgar Martinez makes some good points. I am currently working with two separate investors on their own investment projects as an architect however I do not have any equity stake in the project. I am part of their team and we work as partners but I will not gain anything from the sale/rent. I am okay with this for these projects though. The deal has to be right and opportunity looked at by all parties. The biggest downside to trading your architectural services for equity is when will it be paid out? As an Architect, we are front loading the project and if problems arise or a deal needs to be backed out of, our services have already been provided. How would we be compensated?  

In the above I bolded "services". As a licensed architect, I do not ever sell my drawings. They remain an instrument of service and owned solely by me. The client/owner/partners only have use of said drawings for that particular project, after-which their use is restricted unless I deem it acceptable for another project. This gets into contract language, legalities and best practices for practicing architecture but I figured best to touch on it.  

Sounds like an awesome event @John Hickey. Won't be around this day but hope it turns out well. 

We'll get around to meeting one of these days. All the best