All Forum Posts by: Kristi Kandel

 In Columbus, OH we are starting to see the impacts of the Intel investment into the market. It's now projected that there will be approx 100B in industrial developments. The city has been and continues to invest in its infrastructure and obtaining smart city grants to stay current. The city core population is supposed to double from 1M to 2M by 2030 and increase to 5M by 2050. The surrounding suburbs and communities are bracing themselves for the overflow in an already challenging housing market with not enough supply and the focus on affordable housing within the city and surrounding communities. Housing is where jobs go to sleep at night and must be planned for in a deliberate way in conjunction with the jobs that come to town. 

I'm very impressed by the agency cooperation in central ohio. They understand the bigger picture and understand that community leaders from all sectors need to work together to create cohesive developments that address ALL needs surrounding grown. That way they can masterplan communities that thrive with live work and play as their communities grow rapidly. 

I'd suggest looking into affordable housing as a key component of growth around any megasite. It might be worth picking up 5 acres zoned residential with density of at least 20 units per acres while it's still cheap if you can sit on the property for a while and look at developing it in 5-10 years. 

1. get a RE attorney to outline the facets of the LLC. Operating Agreement & the buy/sell agreement.

2. create a simple one page document between all 3 partners listing roles & responsibilities leading up to acquisition, work to stabilize, then the daily operations. Include outside parties like accountants, property management, CPA, legal, etc. This will make sure you're aligned and that your attorney can draft the proper clauses. 

3. Outline the primary exit strategy and a couple possible secondary strategies as commercial loans typically adjust every 5 years and the interest rates/market changes could impact your primary strategy. 

4. Outline how you'll address the asset in the event that the Tenant defaults early / doesn't renew the lease and what your options are to get another tenant in. Both from a time and cost standpoint. Who is the primary contact for the Tenant? 

5. outline how distributions should be addressed. Are you leaving all profit in the account and taking one payout a year (1/3 1/3 1/3) AFTER the prior year's taxes are finalized? 

6. Agreed on understanding how your partners are funding the deal AND how liquid they could be if something goes wrong. 

7. What are the reserves you agree to hold in the account, what reserves do you want to build up for capital improvements, etc. 

8. Get a term life insurance policy for all owners so that way the other owners aren't dealing with the beneficiaries of the partner upon death (yes even if you're young plan for the worst case scenario) and the policy will pay out the equity to the beneficiary. 

Basically think through everything that could go wrong and plan accordingly with legal documents so that you are covered if/when things go south and you can keep most of the emotion out of the deal when emotions are running high. 

Jurisdictions have put in regulations on what zoning codes will and won't allow. Many AHJs have stated that shipping containers cannot be homes/used and the same with metal buildings. Both are generic ordinances that once stopped people from using raw shipping containers and random metal buildings for housing that caused blight in communities. Today we build with metal buildings and shipping containers all the time HOWEVER, that also requires things like putting stucco, siding, etc. on the exterior so it doesn't look like a metal building and sometimes it requires a special use permit to allow for metal/shipping container construction. You have to speak at the public hearings and explain to the AHJs why their codes are outdated and the reason they were created is no longer valid. 

Typically you cannot run a commercial business out of a residential zoning. If you were going to get a business license and run a legit commercial operation you'd need to check the municipality's zoning code and see if a daycare is an allowed use by right or with a special use permit. You'd need to speak with the planning/zoning dept to verify after researching the code. 

If you intend on putting 30K into a property you don't own you'll need to make sure you have an ironclad lease agreement that does not allow the seller to back out of the sale to you. Also that your lease allows you to make improvements to the property. 

Typically the lease to own/rent to purchase scenarios are a way to allow a buyer without enough funds to purchase outright apply monthly rent towards a future downpayment/purchase. Then after you own the property you'd start making substantial improvements. 

 Ahhh gotcha. I only invest in larger commercial developments focusing on clean energy projects (mostly in CA right now) and affordable housing in NV, OH and looking in FL, TX, CT, ID, and AZ right now. 

No, what's his deal? Looks like they maybe invest in smaller SFH products?

 Daniel - I've been in RE development my entire career and started my company in 2015 in CA. Checkout this book I wrote sharing the story. If you want to connect after just DM me and we can setup a call! 

https://drive.google.com/file/d/15VTePj526pwUR21OUn-4QNOmx-R... 

I'm also in the process of completing a Development 101 course which should launch by the end of Q1 2024 and we'll have a masterclass that likely launches in Q3 2024. There aren't many resources for development out there and we are trying to fill that gap! 

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1. 1. Automate & simplify as much as possible.
2. 2. Create cool features/or unique decor that don't cost a lot but makes the property standout from other similar places in the area
3. 3. Have plenty of parking & trash cans (in bear cans depending on the market) to avoid a mess or annoying neighbors
4. 4. Have clear directions to the property so neighbors aren't constantly bothered
5. 5. Match all similar amenities for similar properties in the area
6. 6. Flat screen tvs are super cheap and streaming TV. Putting one outside near a hot tub or deck is a "cool" and cheap feature.
7. 7. Create a super cool outdoor area for campfire and maybe unique chairs like tree stumps, logs, etc. that are permanent and more interesting than chairs. Hang some string lights to create a cool ambiance at night.
8. 8. Potentially do a low cost tree house
9. 9. Maybe do a low to the ground zip line between trees for adults and kids
10. 10. People are coming to the mountains/lake/beach so sprucing up the outdoors for picturesque photos that could make the place go viral on someone's social (so include your QR code/social throughout the house so they can tag the property)

 It completely depends on your team, time, and strategy. STRs are a business where LTRs are much more passive and require much less time and effort.