All Forum Posts by: Michael Le

Their loan will be based on the project budget. In your example the budget is $2M and assuming you can get a 75% LTC loan then the bank will require you bring 25% in equity, which you can contribute the land. So you wouldn't have to bring any additional capital and would start drawing from their loan immediately.

Site to do Business

https://www.stdb.com/

If it's your passion and you are having success in it, why would you never be fully on development? I'm not clear on that.

Seems to me if you're passionate about it and you can make a living doing it, why wouldn't you do it?

I raised about 1.5 acres of land that was in the 100-yr flood plain about 4 feet. It took 5000 truck loads. Fortunately I needed detention on another part of my land so we just shifted dirt from that. Saved at least half a mil because I didn't have to truck dirt off or on.

It's a pretty involved and complicated process, especially for your first investment. Why are you looking at doing this vs buying an existing property? No one will be able to tell you everything you need to know in a post that would take at least a book to answer. But at the very least you should start with an feasibility study on a specific piece of property and then engage a civil engineer and architect early on.

You'll generally want to have investors well before getting something like this under contract. At this point you should probably look to bring in an experienced developer co-GP to help with the project and raise. You could also flip the contract to someone else to move it forward.

Originally posted by @Michael Swan:

Remember, every dollar you increase the NOI, it is like a 12x rule on valuation.

Swanny

 Swanny, there are you finding 8 caps?! It's more like 20x rule nowadays... lol

Originally posted by @Luke Carl:

Curious to see what this thread would look like today. Is anyone actually finding 10% on multifamily?

I think many people are actually achieving these numbers (myself included) due to the crazy rent growth that has been happening. Can you actually find that in new acquisitions is another question? Pricing from Sellers are baking in these crazy rent growth but as a Buyer you can't account for it, so there is usually a gap.

Costar, ALN, YardiMatrix. 

My partner and I run one in the Woodlands. You can find it in Meetup under Multifamily Wealth Network