All Forum Posts by: Asad Shaikh

Who has been involved in ground-up apartment construction? I anticipate the land parcel I'm looking at (based on zoning) can accommodate between 50-75 units. I know there are multiple costs involved- from the land acquisition,to any city rezoning/permitting fees, the site and utility prep, architectural plans, and actual construction of the units. Per my assessment, this is a C+ area that has B potential with the right development.

The land is not listed online, I found it for sale by the owner. I went to the city hall to pick their brains about what might work best on this parcel (they took me seriously even though I indicated I was new to this), and they suggested that any low-income housing would be rejected- and the best way to get proposed plans to go through would be by building a product that appeals to young professionals & graduate students (location is super convenient to local university.) They indicated anything that produces rents under $1000 wouldn't be acceptable.

 I wanted to chat with someone who has actually done this & pick their brain on costs to build etc. How much per sq ft on construction for basic units, mid-grade, high end etc? (I'm in Florida if that helps.) I even think there may be opportunity to do some mixed-use space on the first floor, most likely just small rentable office suites for professionals (think lawyers, CPAS, real estate agents etc.)

(PS. This would personally be my first project ever. I have a money partner with good banking relationships- he has acquired and flipped many value-add strip malls & gas stations etc.)

All, I want to apologize for last-minute cancellation on my part. Had a family obligation pop up and can't make it :( 

There will be more to come!

It just opened so we could play it by ear, meet in the central courtyard and select the location from there.

@Veronica Zayas I am interested. I am a real estate agent, but I do some investing as well-specifically am invested in 3 land deals set to have construction completed by the end of this year. We can meet at Armature Works? Its one of the hottest new spots in town.

Are you developing and holding or developing and selling once tenants are in place?

Being an agent that has worked both the seller and buyer side of transactions in Tampa, I can tell you that if you have the capacity to get a conventional loan- go that route if the numbers are better. 

Sellers percieve FHA loans as more risky than conventional when vetting offers, and having represented many FHA buyers it takes a very aggressive type of negotiation to win in a multiple-bid situation.

I have an OCD personality. In addition, sometimes the shiny object syndrome is very much in effect when I come across a new business idea or real estate strategy. But in 2017, I made a commitment to focus. I did relatively well. In 2018, I am telling myself that I have two income-based goals. That is it. Any business not related to these goals can wait. I owe it to myself and all those I associate with to be focused. These goals are trackable and measurable.

#1 $100,000 in net real estate sales income, 4.8 million in volume assuming a 70/30 Split with no cap.
* 12 deals avg $400,000/unit
* 16 deals avg $300,000/unit
* 20 deals avg $250,000/unit

#2 $80,000 in real estate development income
* 2 deals with $40k net profit each
* 3 deals with $27k net profit each
* 4 deals with $20k net profit each

If I hit my targets, in 2019- I will have a real estate investment goal as well. Time to start building long term assets for cashflow.

What are your trackable, measurable goals for 2018? Lets share and check in throughout next year, and keep each other accountable. 

 YES! We are planning to do polished/stained concrete flooring. I think exposing the ceiling joists and ductwork is a bit more polarizing (but would be a significant cost-saving, right?), in Tampa this look is more common in trendy hipster "loft" style condos- but I haven't seen it much in single-family homes. But I think for the right end buyer, the fact its uncommon could really help the home stand out.

Roberto, do you have any pictures of some of the modern homes you built for $100-$110. Also any pictures of current builds you have with the exposed ceiling joists/ductwork?

Would love to take a peek.

I'm going to PM you as well. 

Dude- the contemporary property is gorgeous. How much did it cost to build per sq/ft? I know you said 20% more, but how much specifically?

Furthermore, are you holding these properties as rentals or did you sell them? In either case, did the 20% cost differential get more than a 20% increase in rental or sale price?