All Forum Posts by: Laura Janosko

Hi Everyone,

I currently work at Novogradac and Company, a valuation firm specializing in tax credits, and am blessed to have found a job that I truly enjoy. One of the reports my company writes for developers/investors is a reasonableness opinion for developer fees. The IRS requires that all new developments involving tax credits submit a reasonableness opinion upon closing. In the past, tax credit developers had been taking fees up to 20% of total project costs, which was well above what market rate developers typically charge . We write reports that determine whether the fees tax credit developers pay themselves is market oriented. In order to determine what developers are paying themselves in the market, we obtain interviews from developers about fees they typically charge.

The interviews are incorporated into our reports using the name, title and company of the person we spoke with. Our clients are typically national financial institutions, so the interviews should help you build your businesses as well. 

Any information regarding what developer fees are as a percentage of total costs would be greatly appreciated. In addition, we are trying to determine what premiums can be charged and what those would be as a percentage, for example, one percent for the developer being involved in acquisition. 

Further, any information regarding typical asset management fees, management fees, incentive management fees, construction management fees and asset management fees would also be helpful.

I am available by phone at 216-239-5546 or you can also email me at [email protected].

Hi Michael, I feel like this is almost a catch 22. If the demand for parking is high, it would be difficult to sell a commercial building that offers no parking. In order to sell you would either have to offer a discounted price or lease your parking to the buyer at a discounted rate. On the other hand, if there is little demand for parking, you may not be able to charge for parking. Overall, I think you would get a better return buying a lot that has not been maintained or a vacant lot in an area with high demand for parking. The company I work for uses nearby parking lots and garages as "comps" to determine the investors return. I'm sure you could easily do the same by looking online or calling nearby lots.

Thank you both. My parents are not thrilled with my decision to invest in real estate, which probably has something to do with it. I'll be sure to ask about the 203K loan and get Brandon's book. 

I graduated from college in 2013 and started my job as a junior real estate analyst in January 2014. I've been saving $1,000 per month and am proud to say that I've reached my goal of $20,000 to purchase my first investment property :). My fiance and I are currently renting, but we're looking to house hack a triplex or quad in Lakewood, OH. Any advice on which type of loan to use? My parents had a difficult time with FHA when they purchased their primary residence 25 years ago and are discouraging me from using it. I'll be purchasing the home myself and earn $39,000 per year, so I'm not eligible for many of the first time home buyer programs. Any advice about lending programs or contacts for anyone looking to sell a small multifamily in Lakewood would be greatly appreciated!

Hi Mindy,

I work at an appraisal firm and we do extensive research into markets all around the country to value or determine the feasibility of proposed affordable developments. We start by looking at overall population and number of household trends over the past decade, we then look at what they are expected to do over the next five years. We also look at employment and unemployment trends from 2003 to 2015. We consider the best markets to be those that are consistently growing in population, number of households, and total employment and are above the national average in all of those categories. The city's unemployment rate being below the national average is always a good sign, but less reliance is placed on unemployment than the previous three factors. We also look to see if there are any employment expansions in the area that would increase the demand for rental housing.

When looking to invest in small multifamily homes, I would look research vacancy trends and talk to some real estate agents in the area. The populations, employment and household trends are only available at the city level (to the best of my knowledge) and, as was mentioned before, some city's vary street by street. I'd look into crime rates in the property's immediate area and talk to local investors/real estate agents to get the best feel for your market.

Hi @Darren M.! Still saving money through Betterment before purchasing my first duplex or triplex. Started with $0 savings and would like 25K before purchasing. Looking to purchase around this time next year. Til then listening to podcasts and learning a lot at my job. What are you looking to purchase?

@Chris Adams I haven't started investing in real estate yet. I graduated from college in May and started my first full time job in January. Right now I'm investing through betterment until I can save up enough money for a down payment. It should take less than a year. By that time my lease will be up, and I can purchase an owner occupied duplex.

Hi @Judson Laipply

Agreed! The site and podcasts have taught me so much. I would love to help put together a Lakewood meetup. Restaurants such as Deagan's and Pier W have private rooms in the back. Or we could go someplace cheaper like Winking Lizard. Maybe meeting around 6:30 or 7? Let me know what you think, and we can start a new post to get all the fellow investors in Lakewood together.

Thanks for reaching out!

Hi Chris,

I don't have any experience as a landlord, but I'm a 23 year-old renter with no credit for the same reason as your prospective tenant. The PM required that I pay double the security deposit.

Hope this helps!

Thank you @Brian L. @James Wise @Zoran M. @Pierre Thernize @Ramon Jenkins and @Rich Armentrout for welcoming me to the community!

@Brandon Turner I'll be sure to check out the case study. Thank you for recommending it.

@Steve Baldwin My exit strategy is listing the property with a real estate agent. I work in real estate valuation putting together appraisals and market studies for multifamily and mixed use properties. Half of my job is calling comparable properties to determine rents, vacancies, market demand, amenities, turnover, leasing pace, and utilities paid by the tenants. We use this information to value our proposed property and determine if our proposed rents are feasible. The other half is performing market and economic analysis to determine whether the proposed development is in the right location. Based on information gathered through interviews and analysis, we recommend that the development should or should not be built.

@Paul Timmins I've been reading the Beginner's Guide and listening to podcasts and will start looking into REIA clubs. Thank you very much for the suggestion.

@Mindy Jensen That would be great! Can you please send me his information?

@Joe Fairless I am looking at properties approved for HomePath Renovation Mortgage Financing and hoping to keep the down payment below 5%. Any idea how much money I should have saved up for improvements and repairs for an owner-occupied duplex?