All Forum Posts by: Mayer M.

@Jay Hinrichs

Definitely understand ooc being fully steam ahead.

@Jay Hinrichs

That’s awesome!!! Been following your posts about your development, congrats!

Do you really think holding off is wise? I can’t imagine costs retreating anytime soon. For me everything is ready, bank is ready to close, etc. pausing for a year just seems to add even more uncertainty. My uncle who’s a Wall Street veteran says I can always hedge, but I don’t think that’s for me. He said maybe I should hedge lumber by buying WOOD eft. I also do not see rents increasing enough to absorb the added costs easily.

What are your thoughts on Philly? That’s we’re my projects are and have seen you mention you’ve dabbled in the Philly market

@Emilio Ramirez

Those developers that are building those multi family projects are definitely having to change up their proforma due to material costs. My project is a 28 unit, 27k SF and just the increased lumber cost added $200k to the project. Numbers are getting tighter

Hey!

So how is everyone handling the increased development costs, particularly the dramatic increase in lumber prices?

I have started to see people put projects on hold hoping that material costs come down, but will they? And if so, will it be enough to make a dent?

Personally, I believe lumber costs will continue to rise especially once inflation begins to set in.

I am slated to begin a new construction multi family project and the lumber costs are about $200k more than they would’ve been a year ago. The way I see it is since everything is already lined up and ready to go there’s no sense in pausing with the hope I can build for cheaper in a year.

What are your thoughts?

@Art Johnson

I don’t think meeting this criteria is possible at the moment. Perhaps you can find it in the rougher areas

@Joe Villeneuve

Dm me

@Joe Villeneuve

Agreed. Happens to be that I’m in the process of selling the 13 condos that cost me $50k for around $100k a piece.

@Katie Neason

You have one water main into the building correct? From the main meter you have a “spread” to all the individual meters

You need WiFi meters and a WiFi router in the room to relay the information to the company billing your tenants for the water

Go to truesubmeter.com and you can read a little on it. You’ll get it figured out

@Joe Villeneuve

Why do you say that? Not that it doesn’t necessarily make sense, but does it in all scenarios? such as a $50k condo that was successfully brrr’d (no cash left in the deal) and now worth $100k

And does it with a $7.5 mil property with the same scenario as above?

Perhaps I’m confusing equity vs. value

I know your a mathematician so curious on your thoughts

p.s. always love reading your posts

@Katie Neason

Hi Katie,

First, why were the meters installed this way? It appears you used meter spread where the main comes into your building from the street for the meters, why not just have the meters installed in each unit where the water comes in?

They should be WiFi meters and the meter company should be reading the data remotely