All Forum Posts by: Emilio Ramirez

$150-$225 in denver for a spec selling in the $1-2 million range... but then again it depends how you define construction costs. Seems like everyone has a slightly different definition.$450/sf seems a little high for a spec..  but then again you're on the coast. My buddy in santa barabara is building at $600-$1600/sf... so $450 would be a bargain... :) 

not to mention not all contractors have the same business model. If you're getting bids from custom home builders, their pricing tends to be higher as it is geared towards homeowners as opposed to investors.

Builders risk has nothing to do with workers. It is the comparable to homeowner's insurance when there is no house on the property and it is being built.

Absolutely you should be "cautious" in hiring day laborers. As a contractor your number one job is to minimize risk. If you are the prime and pulling the permit you need GLI and possibly workers comp and possibly professional liability. It depends on client (you) and jurisdiction. Talk to an insurance agent who specializes in new construction.

Nice work Sam. Congrats on getting that first deal done. I've recently started educating myself on multifamily and have been analyzing deals on loopnet. Can you summarize the underwriting?

At 7.5 million thats about 112k per door.  What kind of rents are you anticipating? Does the model only work with rent growth? What other value adds are you planning and where do your expenses fall? Congrats again and continued success. 

Don't know Austin but you should be looking for an experienced land surveyor. Ask him specifically if he's done lot splits before and what the process is. This info should be available on the planning department website. Read it so you have an idea for your self before you talk with him. This will help you vet your land survryor. Get at least three bids and ask them the same questions. See how each of them answer. 

Most SFHs are zonned for single family... meaning you can only have one legal dwelling unit on the property. In order to change to a two family you would need to check your zoning. Usually you can find this online. If not, you have to go down to the zoning department.

i would educate myself and network. 

Why is he interested in seller financing? Is there significant deferred maintenance? Is he interested in cash flow? What's the budget for getting the property up to snuff? Do you like your neighbor? Could you partner with him?

Form LLC. Refi the house at $160-170... 10k for his move and a little extra to prep the house for rental. (This is assuming minimal costs to do that). You manage the property. He brings the equity and split the cash flow. Buying outright seems to be a bit high for a rental property.

I would look up some of Brandon's webinars/podcasts on valuing single family homes for rental properties. Don't get excited about it. Try to evaluate like Spock. 

Nice work Bill! Sky's the limit!

I would call myself an investor friendly builder. I prefer working with investors because they are generally not emotionally attached to the home construction and can usually fund multiple projects. Because I know there will be limited hand holding and the potential for more work, I'm willing to agree to a lower fee than a high maintenance client. We are out there, just have to find one in your neighborhood as I work in Denver :) 

What's the cost of living in California compared to other places? What's the cost of labor? What's the cost of utilities? What's the cost of taxes? What's the cost of materials? What margin are these companies looking for? What is the building code? Answer these questions and you'll start to understand why a modular company on CA has different pricing than a modular somewhere else. Not to mention that whole earthquake thing.