All Forum Posts by: Barry Ruby

@Mathew Giron

Mathew,

Are you looking to fund the project with a single or multiple investors?

@Anna R.

Anna, what do you intend to do with the land?

Do you own or properly control it?

Prior to engaging 3rd party consultants and paying for their input are you able to use it to underwrite the highest and best use of the property?

Please let me know if you’d like some help with this.

@Charlie Duquette

Hi Charlie, let me know if you find a property and need some help analyzing and tying it up properly

I'd be happy to help you do that

Robert, You can save yourself a lot of time and money by doing preliminary underwriting to determine the highest and best use of the site while conserving 3rd party fees (architect, land planning).

Let me know if you'd like some help doing a high-level feasibility analysis

@Patrick William

Hi Patrick,

Your concerns about confidentiality are valid as is your question about priority.

It would be unwise to make an offer to purchase the property without having a fairly good idea of its current and built out value.

Valuation can be established by running the numbers for each scenario to get a sense of deal performance.

At the same time that you conduct underwriting, you can do a “soft” probe into zoning regulations to confirm the ability of getting the deal permitted.

The situation requires you to do a bit of a dance between site control and vetting it for feasibility and performance.

Let me know if you need any help with doing the tango.

@Shaquez Wilkerson

Hi Shawuez,

I can send an input worksheet. If you return a populated copy of it back to me, I will send a full analysis of your project to you that will give you the data and performance figures you are looking for.

Let me know if you would like me to send the input sheet.

@Arn Cenedella

Yup, i still have mine as well…but don't use it much

@Arn Cenedella

I started developing property the day after dirt was invented. I ran all my numbers with a hand held HP pocket calculator and a legal pad.

I jumped on computers and programming spreadsheets as soon as the technology arrived and have evolved with it ever since.

There is no doubt that many of the time tested methods work and should be applied but I believe that also holds true to embracing technology.

There is nothing wrong with using it and everything wrong with placing too much confidence in it.

Having the ability to create and employ a robust pro forma model is a critical skill set in my underwriting and managing a project.

The problems that may come from doing spreadsheet analysis come from poor use, faulty data and a penchant to believe one’s own BS.

@Kobe McDaniel

Hi Kobe,

I have developed a fair amount of property in your neck of the woods.

I'd like to take a look at your business plan.

@Marco L.

Marco,

Are you looking for for a value add deal or a property that has little or no deffered maintenance?

In either case, the cap rate to focus on is the acquisition cap rate which represents the UNLEVERED year 1 cash on cash yield you will receive before introducing debt payments.

Given the current cost of capital, introducing -7% debt against a -4% acquisition cap rate will surely trash your after debt coc.

The only way a 3 or 4% acquisition cap can work is with a healthy value add development plan.