All Forum Posts by: Dion Huey

@Kiran K.  If you are looking for cash flow and fewer managerial headaches, you might want to explore passive investing in RE syndications.

Hello, Bigger Pockets Community!

I am working on a mock real estate development project submission, and I am looking for some general rules of thumb on how best to estimate the following:

1.  Demolition, site preparation time and costs.  The existing site is a 60,000 square foot, 20-story building on Hong Kong Island.

2.  Construction Length of Time.  We are planning construction of two 24-story towers with a total construction floor area of 70,000 square feet over a two year period.  I looked into other projects recently built by a developer we would like to recommend and determined they typically complete projects of similar size and type inside of two years.

I understand many variables can affect both demolition and construction time, but I am only looking for a general rule I could apply in the absence of reliably sourced data.

Thanks for your time!

Hi @Tamiel Kenney, I think I have heard of them a while back, but haven't looked them up.  I will check them out.  Thanks for the tip!

@David Thompson  Thanks so much.  I will check out your profile.

Hi Marty, David is right. Only looking at your cash flow over your initial investment in the first year does not provide an entire picture of your return. The figure you mentioned gives you an idea of your annual COC return, however, you would want to consider other things such as capital appreciation, debt pay down etc.

Hi Manus, I am personally a proponent of getting both a formal and informal education. When I was 17, I was also deciding whether or not to go directly into RE investing, or go to university. I ultimately chose the university track, got a master's in finance, started a business in Beijing, and am currently working in commercial real estate brokerage in NYC. I feel that my formal education has helped me in many ways such as understanding how to read and analyze financial statements, performing cash flow projections, and understanding metrics that affect risk and returns. If you have the resources and can manage your time well, you might be able to do RE investing part time while attending school. I have a good friend that did this and he ended up making good money to pay for school. I wish you the best!

Thanks @Account Closed!  Good tip!

@Chris Purcell 

Our team consists of 10 real estate agents and associate brokers that focuses on commercial real estate in Brooklyn and Queens.  Collectively, we have money, but each person's risk profile is different, hence I am interested in eventually setting up an investment fund.

On a risk adjusted basis, this $7M deal was not as attractive as the $50M development deal our office has in the pipeline.  We essentially sourced this opportunity where we get some equity in a condo development project without using our own cash.  There is partial owner financing involved and we currently have multiple developers bidding for the build out.

@Kim Lisa Taylor

Hi Kim,

I will be looking for your book.  Could we connect on LinkedIn?

Thanks!

@Levi T.  Hi Levi!  Thanks for the reply and sharing an overview of the regulatory environment.  What you mentioned was exactly my concern, and I am looking to learn more on ways I can raise funds legally from both domestic and international investors.  I understand that I am going to have to hire an attorney and a book/course is not going to make me an expert, but it will provide me with a basic framework to sit with a lawyer and intelligibly ask questions.

Thanks again!

Happy Investing!