All Forum Posts by: Ben Fraser

Hi Ryan, I'm currently based in MI but I've concluded that my ROI growth is too slow going so I'm going to be expanding. To that end, I'm looking in MN IL OH, TN, AZ TX, VA NC SC GA FL, and WA. It's a lot of research but I enjoy it. I'm data driven, using blockgroup-level census demographics and county-level parcel data. Based on what I'm seeing, I suggest taking your cues from the growth of metro areas. For instance, is Cleveland's metro area (surrounding cities that support a main city, or two) really growing when you compare it with the Columbus, OH metro? And what about the Tampa Bay metro, for instance (hint, it surpasses both of them)? So, when scouting new areas, we all know (thanks to BP!) that we need to look for areas with strong job growth/decreasing unemployment trends. Job growth and high employment are not necessarily the same thing as migration into a city/region could possibly exceed stellar job growth numbers. So we also need a strong trend of net positive migration. In addition, we need to talk to other REI's to try and understand market cycles (so we aren't buying in at the peak). Metro areas are very useful in understanding all of the above on a regional level, without getting bogged down by RE-arbitrary city boundaries. So, in one example, buying in the right neighborhood would capture the stellar job growth and positive in-migration. That's why I feel the need to look at census blockgroups in metro areas. Now, if all this sounds a little confusing - don't worry, the good news is that metro areas (by virtue of their multi-city nature) can support multiple job growth areas and, thus, neighborhoods. I'm working on a set of posts here, to my blog, to further explain all of this, and with some pretty cool maps too. Good luck!

Impressive project!

Maybe you should get a partner because, if you are certain about the value of the deal then maybe a partner could help you triple it. In such a scenario, you would make more, maybe spec out 1 house and then sell custom builds for the other 7.

Clearly, you need to speak with the City and/or County, and possibly the Township. You might also head to a REI meeting and also a Planning meeting.

If you go to a Planning meeting, think about sitting quietly for the first one. I don't know your time constraints, but a little recon might be in order. You will see how they handle their business, for starters. Are they sticklers? Probably. Do they have a 5-year or 10-year Plan? Absolutely! What information do they need vs. what information do they not need but greatly appreciate?

As for hiring people, wouldn't you rather just hire one person (a GC) who can handle it all, including the architect, engineer, etc.? Just a thought.

Good luck!

Quick question for you Aaron. How did you know it was worth over 60? It's not a trick question but it is a leading question, as they say on TV :)

Basically, if you're not a real estate appraiser and/or a real estate agent and/or contractor with lots of experience then you might not know. Also, the money a buyer or seller spend on an agent is usually money very, very well spent. They give you access to the MLS, for one thing. I mean, you could go online to look at the MLS but they pay money for early access and then give access to you so you can know about deals immediately. Also, they have comparables, that is, they know what properties are selling for in your price range and/or area of interest - if they don't then find another one!

Realtors are some of the most hard-working people I've met. They might not be digging for coal, but they are usually up at midnight on your behalf, or working on the weekend for you. In fact, I like to up their commission when I sign an exclusive representative contract with one because then you know they are working extra hard for you.

Also, you never mentioned an inspection on the FSBO. Were you not going to get one? That is not advised. An inspection gives you leverage in the negotiation and you get a to-do list if you close. Win!

One last thing. Don't be down about this first try. I've often found that one deal falls through because a better one was clearing the runway. Patience is key. But, if you can't be patient, then just be persistent. Your deal will come, a realtor would help.

The chances the city and/or the township has a plan for your property is pretty high, given the proximity to the bigger city. But if the current zoning allows mobile homes and RVs then there's not much they can do about it until the next revision. Beware though, the next Plan revision is in the works, it's always in the works is what I'm saying, and you might miss out. That's why it's a good idea to get in touch with the planning officials. And here's a tip for that. To get prepared and get the lay of the land, so to speak, go and attend a planning meeting. They should happen every two weeks or monthly. You don't need to ask them anything, or have an issue to be there. You can just go in and observe. You will probably learn a lot about their future plans that way, and so, if you do decide to re-zone you will know better how to make the approach. Also, if you have any sort of objections to their plans then you are urged to let them know - they usually get feedback from a few regulars so a fresh opinion is quite valuable if it doesn't involve screaming or cursing (which I'm sure you would never do). Also, the advice from the others to think about a subdivide is generally good, especially in the sense that you won't have to use the whole piece for the collateral when you proceed. However, a planned-unit-development is also an option to consider. This is a close-up process with the Planning Office and usually unfolds over several years in Phases. Planners like them because they get to work closely with the owners and it gives a little more predictability (a lot of their decisions about zoning and strategy is based on projections because they don't know all the variables of community growth ahead of time). Also, a quick note on subdividing, it might be a good idea to use an LLC to protect your investment and limit liability. I'm no tax lawyer or CPA, I've just heard of it and it stuck in my mind as a way to keep those profits in the event of a dispute, God Forbid. Another quick note on mobile homes, if you can get a mobile home sellers license that can open up a lot of possibilities. There's a BP podcast on that subject and it was excellent. Finally, you mentioned a co-signer. What about a partner? 50 acres is large and a partner might help you make more money, even if you have to split it with them, because maybe they will help you speed it up. Good luck!

I'm a trained urban planner from Indiana with no actual work experience (about to graduate with Master's) but I do have a tad of experience from your side of things with Zoning Departments because of my properties. I'm new to BP so I hope I'm not disobeying the rules by including links to the City of Gardena Zoning documents... To begin, IMO, the best thing to do I strike up an email conversation with someone in Gardena Zoning. Just before you do that, it will be helpful to review their planning documents (below links). Being polite and courteous will go a long way with the person you contact because the job is quite stressful (so I've heard). But, by actually having read the following docs and asking informed questions of them you will begin to stand out as a superstar. I've done this! Take care though. Just because you've read these docs doesn't make you any kind of expert so do make sure not to portray yourself as a know-it-all. ************ Gardena Building, Subdivision, and zoning regulations are contained in Titles 15, 17, and 18. You may view a complete copy of the Gardena Municipal Code (GMC) with keyword search capability by clicking here (http://www.codepublishing.com/CA/Gardena/). The Gardena Municipal Code is updated routinely. Ordinances that have been approved by Council (adopted) but not yet published in the Municipal Code are listed on the City Clerk’s web page. Click here (http://www.cityofgardena.org/2016/04/26/gardena-ordinances/) to view. In addition, a handy fact sheet was prepared by our Community Development Department entitled Quick Reference Guide to City Regulations which is recommended for your review. Guide to City Regulations (http://www.cityofgardena.org/wp-content/uploads/2016/04/quickreference.pdf) ************ Good luck, I think you have a shot :) Most people who want to re-zone, or who are trying for a variance are trying to go from R1 to an R2 so, it sounds like you're doing the opposite and your idea might be received more warmly than you might think. Please feel free to @ me any follow-up questions you have. I'm glad to help. PS. I grew up in CA a little. Beautiful place, wonderful people!

Hi Bee-Bee,

Depending on how far south that is, S. Curry Pike can get quite rural. On the other hand, the closer to 3rd St. you are the closer to the Walmart and Sam's Club you get. And, personally, that is not a plus in my book. Basically, we are talking about the west side and this is where most of the commercial development in Bloomington has occurred in the last 10-20 years.

However, despite all the development, the west side elementary and middle school districts in that area still aren't that great. Bloomington High School South is the better of the two high schools (and I say that reluctantly having gone to Bloomington High School North myself) because a lot of SE neighborhoods (where you aren't looking at buying) are quite expensive.

So, my advice is to try and buy closer to the IU campus, the SE especially. That way you can appeal to both parents and college students. There are still some deals to be had in Garden Acres (which isn't really SE...) for instance, and that particular neighborhood is within walking distance of the College Mall and the new Whole Foods grocery.

In any case, good luck!

Ben

Marc,

Thank you for being the first to comment on my intro, and my graduation!

Who's your team in the Lil 5? I'm obligated to root for the Cutters since I'm a townie. As to my property, I wish it were zoned MF or C but it's AgRes, it's very steep in most places, and it's way out by Lake Monroe (but not shoreline unfortunately).

And, please do bring on the urban planning questions when they pop up, There's not much point in all that studying unless I can use it to help people. Even better, I'm quite familiar with Bloomington and Monroe County planning/zoning.

Ben

Absolutely. So much data is out there, beyond the Census. For instance, I'm looking at Duluth, MN. I'm not really interested in buying there. It's a class project. Personally, MN is too cold for me but I have a ton of data on it, all the way down to the parcels' tax info. The Census doesn't supply that; I got the shapefiles free from the state.

Hi Jon, hi all,

I'm all about open source data and software so I have to recommend the QGIS software and the US Census data. The 2016 Census data is available now. QGIS is free-to-download and free-to-use geographic information science (GIS) software.

The Census data is also free, of course, and it usually comes in spreadsheets (.csv and .xcl). However, by using QGIS, the real power in the Census data is found in their "shapefiles".

These they call TIGERLine and if you have QGIS you can open them up as full-on maps. You can then read the software instructions (37 pages long but worth it) and you will know how you can use QGIS to display the Census data in various, useful ways.

For example, if you wanted to know which neighborhoods were, in 2016, above average in median income or were, in 2016, more owner occupied than renter occupied you could see it on the map in equal interval categories (100-75%, 75-50%, etc.) or custom categories (0-50%, 50-60%, etc).

I'm not sure this is what you're looking for because all the posts so far haven't mentioned Census data. Also, I'm new here so I want to make sure to follow the rules: I am not affiliated or receiving compensation, of any type, from the US Census or QGIS.

Hi BP'ers!

I'm a new member living in Lansing, Michigan and I'm about to graduate from Michigan State University with an MS in Urban Planning. Go State! I currently own 2 SFR's in Lansing, one I live in, one I'm fixing up. In fact, that is how I found BP - I was searching for some fixer-upper advice on Google. I'm going to list both of them soon so I can relocate when I find a job.

I'm originally from Bloomington, Indiana. Go Hoosiers! Indiana University-Bloomington is where I earned my BA in Geography. Also, I own a vacant land property just outside Bloomington. I listed it too so I can take all the investment money I have to my name and make a fresh start in a new geography.

Did I say I'm graduating soon? Well I am and I'm looking for a job in either the Urban Planning or Geospatial Analysis arena. Actually, it would be ideal if I could score a job where I can do both! And, I want to find my new job in a hot real estate market that still has room to grow. That way I can augment my vertical job income with some horizontal passive income (a little something I picked up on from the BP podcast with Pat Hiban).

Finally, I'm looking forward to participating in the Forums. I expect I will best be able to answer geography- and urban planning-focused questions. I'm not afraid to ask my own questions either. Thanks for reading!