All Forum Posts by: Emilio Ramirez

So we're talking apples to apples here, when a person passes the test they are a "LEED Accredited Professional" also desifnated LEED AP. When a building goes through the bureaucratic process with the USGBC and reaches a certain point thresehold it is LEED Certified. That was actually a question on the test whe I took it.

The LEED certification process alone will add significant costs, rarely adds value and we don't recommend it. If the owner wants to pursue green strategies, the LEED checklist is a great place to look for ideas. There are several items on the checklist that I would consider low hanging fruit and many more that would have first cost increases, but life cycle benefits.

As noted above all Federal Projects require LEED Certification. I am not aware of any program that provides funds for procuring a Certification.

And yes there are credits for water use reduction. This can be acheived through the use of low flow fixtures.

Dammit!!! I was preparing for inflation. How fo I hedge my bets?

Anyone have an estimate on how long it is from application submission to close for a 223(F) new construction project?

Do you notify the note holder that you entered into a sales contract?

Thanks for your input Louis. I have been working on a team. I have a family friend who runs a well established management company with the experience you describe. I am planning to meet with him in the near future to begin to chart out the project as you suggest.

Why are you going to buy it with an llc? Bank will most likely make you sign a personal guarantee. By being an owner occupied property you can qualify for the $8000 tax benefit from the us gov if you are a first time home buyer.The only issue I would wonder about, is how much of the property can you depreciate if you are an owner occupier? I would guess 50%.

I'm in the Milwaukee area. Market is pretty flat here.
22 mil in sfh with average price of $255k since the beginning of the year. Office space is dead. Foreclosures are moving. Retail is slow to dead. Some high end condosn hotels, apartments on the horizon. Several condo projects under construction that have low sales, buyers trying to get out and some in receivorship. Many construction projects being put on hold. State and city budget shortfalls. Pretty rosy picture I'm sure, but as in any market, plenty of opportunities. Didn't have the huge run up in costs furing the boom, but enough to make the prices here overinflated. Have seen lots of job losses and contraction of the economy which isn't helping RE.

Interested in development of multifamily residential and eventually boutique and/or luxury hotels. Currently own two rental properties that me and my wife have rehabbed and rented out. Background in architecture and construction and have an overall passion for the built environment. Looking to develop my own properties and am trying to put together my first deal. Thanks for the site and sharing all your wisdom.

Hello Folks,

Great site you have here. I'm a newbie and will introduce myself after I get this post done.

I'm working on my first development deal, a 65 unit independent senior living apartment building. I'm currently building the proforma and am trying to make sure I have all of my soft costs identified. I was hoping that some of you could help me spot items I might be missing and answer a few questions.

AE Fees
debt service(while under construction)
permit
survey
impact fees ( what are these?)
Land costs (is this a hard cost, soft cost or all on it's own)
Contingency ( I know I will have a construction contingency, do I also have a soft cost contingency? total project contingency?I understand it is up to me, what would you do?)
Phase I?
Market Study (i intend to do my own, but I'm not sure how to establish an absorption rate) the county gov't has some data published on this, but I would like to find a way to get my own numbers.
Builder's Risk (I would like to make this a construction cost. Can I buy this with my construction loan?)
Gen liability - Do I need this?
Prof Liability - Do I need this?
Incorporation (If I form an LLC with myself as the managing partner and 1 or two investors as limited partners do I need workers comp and do I pay unemployment ins? I would be the only active employee.)
Reserves (how do you determine what they should be? Is this a soft cost?Is this different than contingency?)

The project at this point will not cash flow until year three. How do i account for the losses in years one and two? Is this a soft cost?

Alright, I have a million more questions, but this post is getting lengthy. Thanks in advance. - Bwiab