All Forum Posts by: Armando Payano

Hi George,

It sounds like you have been quite busy. I am a developer also with a slightly different strategy. Currently I buy old SF in certain areas in the Tampa market and rezone them from SF to RM (multi-family) and build Town homes. My current project is a SF that just passed rezoning on a 150X100 lot. I re-platt them into 3 50X100 and put 2 Town homes on each lot. 1 SF = 6 Town homes. 

I also own 2 small multi-family properties. 1 has 22 units on 2.2 acres. I plan to develop it as the zoning allows for up to 82 units. Can I pick your brain?

A few questions about the 36 unit since that one is complete and you likely have data for.

1. What was you total cost per door including land?
   What was the unit mix and square footage?
   What was the process like going from your construction loan lender...to refi lender?
   How much time did you have on the construction loan after final inspections and acquiring COs until 80% occupancy?
2. How many floors and how did you frame them

Thanks 

Step 1: Get an updated survey.

Step 2: Give that survey to at least 2 architects. Inform them of what you would like to build. They will then give you a draft set of drawings, front & side elevations and floor plan. My architects do this for free because I give them a lot of business. They may charge you a small fee, where a full set of  plans with structural and mechanicals will cost you 12-15k these should only cost a few hundred. 

If you intend to sell the property to a developer it may be better that you DO NOT get a full set of plans. Many times seasoned developers know how to maximize the site or other nuances, that perhaps you are unaware of and so getting a full set of plans would be a waste of money. 

You can then package the property and draft drawings and make the sale contingent upon you getting the full set of the draft drawings.

Hope that helps, DM me if you have more questions...happy to help.

Tailor your expectations. Syndication has become so popular bringing out many new investors with little to no money, the rise of BP, and factoring where the stock market is in its cycle etc...this current environment may continue for years.

Update: After having these listed for 3 months with out an offer, we sold (under contract) both in2 days.

Funny how things turn out.  We discounted them as the market shifted on us. Both closing at the end of May.

Net profit: $203,888.  

As the market shifted so am I. I am taking the intital investment and profits that total roughly $534,888 and instead of allocating those funds to the development arm of my business I am shifting that to boost my multifamily portfolio. This will put me overweight rentals as a percentage of total working capital. This is mostly due to what I saw during the time the fed was raising interest rates and we were sellers. The market slowed down tremendously add to that where we are in the cycle it seems prudent to make the shift now. We also have a healthy portion of working capital allocated to development with 6 more townhouses that should be complete by the end of June and 4 more in permitting breaking ground in July/August. 

When ever I see an ad for “No money down” investment opportunities it infuriates me. Is it possible? Yes. Is it probable? Not likely. But what really grinds my gears is that these folks allow themselves to buy into the notion that you can get something for nothing. It’s one of the biggest disservices that permeates real estate investing. What makes you believe that you can successfully manage, even a 100k investment if you don’t have the means or discipline to save 5k. 

Interested in syndicating?

I am an accredited investor looking for a partnership/GP in a syndication targeting assets with 200+ units in the Tampa FL. MSA.

As an approved Freddie Mac borrower with multifamily experience in acquisition, due diligence, management, financing and value add execution I am seeking a long term relationship to grow my multifamily portfolio.

I am a seasoned real estate developer with 12 new construction developments completed over the past 18 months with intimate knowledge of the Tampa Bay market.

I have an extensive network in the Tampa FL area.

Interested in working with seasoned investors with similar capabilities and funding to acquire large scale assets.

Shoot me a DM if you are interested.

Make sure you pro-forma a healthy contingency.

Your budget is NOT absolute its a guide.

Be realistic about your time to completion, then add 6-8 weeks minimum and be aware that completing the project DOES NOT mean your getting paid. You still need to add another 60-90 days for marketing, sale and closing. 

Hi Anton, 

Your question is very broad in scope. Perhaps you will get a better more informative answer if you mention how you have underwritten the project thus far. This way you can get insight on anything you have missed as well as feedback on your projections.

Your running into a problem many developers are with multifamily. Its hard to make anything less than a Class A property pencil out. 

I have a specific strategy I follow but the properties are difficult to find. If I can find one to meet the criteria I DO NOT press it. Be mindful where we are in the cycle.

I am developing 12 town homes, 2 are complete. I am developing at $90-$105/SF depending on finishes for the intended customer. 

Including the land the deal cannot exceed $145-$150/SF. I havent had any project come in over $141. Closing cost roughly $15/SF. 

These are being marketed at $230-$240/SF. Expectation is to close at $220. 

I have one project that is complete having first open house Saturday. Here is a birds eye view of the numbers.

Construction: $97/SF

Land: $39/SF

Contingency: $10/SF

Closing $15/SF

Builder fee: $9/SF

Total Cost/SF: $170

Total SF: 5866

Total Cost: $997,220

Sales projection: $210/SF (conservative)

Sales projection: $1,231,860.

Potential Net profit: $234,640

Hello BP'ers

I am hoping that someone can point me in the right direction. I am looking for data on different markets. 

Example: Housing starts, number of active listings, how many properties closed, how many active listings, inventory levels etc...

Thanks in advance.