All Forum Posts by: David Ferrette

@Sal Zafar

Have  you thought about selling of part of the land to pay for some of the duplexes?

Sal,

I think Jennifer is correct.  I am building a few spec homes in the Austin area and you will want to contact local banks to see if they do the loans you are looking for.  Chances are it will be a 12 month interest only loan based on prime plus.   You will also probably need to hire an architect unless you can create and submit the plans yourself.  

I am with Patrick on this one.  They are not bringing any value to the situation, they are only trying to exploit a situation for their own gain.  I am all for people making a buck, just not at the expense of others.

@Kevin Kelliher

Is the existing building a duplex?  If you plan to re-zone, good luck!  Are you looking to  buy and hold or sell the duplex once completed?  To demolish a home worth $203k, I would be sure to double check all of my acquisition, holding, money and selling costs before you commit.  If this is in Austin and you need to get a building permit, make sure you have sufficient costs in there for the LONG permitting process.    

I am confused why so many agents quickly say NO to this question.  You  will say YES to 3% commission on a $300k home for a $9k payday but you will say NO to a 2% commission on a $900k home with a $18k payday?  

If I wanted to list 3 spec homes each at about a $400k listing price, what would be be a fair seller's agent commission %?  Would you expect a lower % for the seller's agent since they are getting so much business from me?  All three homes are within a half mile of each other and are new builds.   I do feel that a good seller's agent can provide a great benefit to the seller, it just seems that $36k for 2 months of work seems a bit excessive.  I would like to hear from both agents and investors.  Thanks all!

Matt is correct. By asking such an open ended question, you are showing you have not taken the time to do any research on your own and you just want others to "fill you in" on what to do. I suggest you listen to the BP podcasts, read a few books on REI and then come back with a more direct question.

When you say "wheelchair accessible", do you mean someone can wheel up to the front door?  f you want to make a unit  fully accessible, there is a lot to it.  Talk to a local architect or look at the international building code chapter 11 for what all goes into an accessible unit.  There are also state standards that come into play.  You wouldn't want to advertise as fully accessible only to be sued later down the road for being mostly compliant.

I can make it.

@Carl Gorson

The one important question you did not ask is what can you provide to a potential mentor that will make him or her want to guide you along your way. A mentorship is a two way street and something should be gained by both parties. A mentor (not a coach as J Scott mentions above) will want to see what steps you have taken so far to show that you are serious about this endeavor and that you will not be wasting his or her precious time. I suggest you go to as many local REIA MeetUps as you can and just talk with the other investors that share your passion. Friendships, partnerships and mentorships will form by caring not only about what you need but also what they need.