All Forum Posts by: Eddie W.

Quote from @Justin Hammerle:

@Eddie W. - I would explore using a mixed-use HOA if the residential developer is not opposed to it.

We could pursue a condo situation under a horizontal property regime however, my attorney does not believe I can sell condos (residential portion) unless the vertical structure is already built. I do not want to pursue any construction work on the residential portion of the property. I will consider pursuing construction on the commercial 3,400 SF portion of the property and lease to third-party tenants. 

I purchased 5 acres and now entitling ~25 townhome units with 3,400 SF of commercial space to be located at the entrance of the development. The jurisdiction may not allow me to subdivide the commercial space from the residential space. Our original intent was to sell the entire entitled development to a builder, but one particular builder does not want the commercial land. His valuation for the residential land is based on a fixed price per entitled door/unit.

If I want to explore retaining control of the commercial piece and go vertical with a leasable commercial space, what would you recommend as the best mechanism for monetizing/cashing out of the residential piece? Perhaps the builder purchases shares in the 5 acre partnership equal to the 25 unit valuation? Perhaps he signs a ground lease for the residential land? Both of those options require a long-term relationship with the builder, which I'm not necessarily opposed to, just curious if there is a cleaner way to break out this deal.

Hey everyone, 2 questions:

#1. Can someone help me with establishing the listing price of my land? My civil engineer is almost complete with all site drawings needed to submit for utility and jurisdictional approvals. We are seeking approval to have ~40 units built on 5-6 acres in the middle of a booming area outside of the City of Charleston, SC. It is not our intention to perform any construction work ourselves. We simply want to have all approvals in place and then sell the land to a builder who will then pull all permits in his/her name. FYI, I have decided yet if it will be townhomes or apartments, however, we are zoned for both.

#2. Can someone also advise on how to attribute the revenue from the sale of land with a neighboring land owner who is interested in "partnering?" The owner of the neighboring property (similar zoning as mine) asked if we could entertain a "partnership" where I coordinate all of the above work (listed in question #1) to include use of his acreage. My acreage is 5 but ~2 buildable acres. His acreage is 1.5 but ~1 is buildable. I purchased my land a significantly lower price/acre than him. I'm therefore reluctant to attribute revenue (purchase price) sharing based on our respective acreage costs. I'm also reluctant to attribute revenue sharing based on units/acre because the overall shape of both parcels combined yields higher density if and only if the retention pond is placed on my parcel.

Thank you very much!

Starting to dive in to Bigger Pockets and I’m excited to see where this journey takes me!