All Forum Posts by: Robert Ellis
Robert Ellis has started 340 posts and replied 3215 times.
Post: New Construction 4plex Vs Purchasing 4plex
- Developer
- Columbus, OH
- Posts 3,623
- Votes 1,736
Quote from @Robert Trevino:
Hello Everyone, I am located in Killeen, Texas and planning my next investment. We currently own 1, 4 Plex and am working on strategizing the purchase of the next one. I want to house hack the next 4plex with a conventional primary loan using 5% down. My other option that i am considering is doing a new construction on a 4plex. My question is.. does anyone have experience getting a conventional primary loan to build a 4plex and what if any experience can you share regarding the building of one. What can I expect when getting funding from a bank on something like this? Will they leverage the income potential like they would on An already built one? Who can i speak to in the construction/builder space that could help me get an understanding of costs /planning for a new build.
Thank you
building starts with land selection, plans, entitlements, permitting before you talk to banks
Post: Build to Rent or Die: Surviving and Thriving in the Competitive Real Estate Landscape
- Developer
- Columbus, OH
- Posts 3,623
- Votes 1,736
Quote from @Ryan Arth:
In our market, banks don't want to touch anything they consider spec builds right now (anything built for sale). The same banks are open to build to rent, and many builders here are at least dabbling in it now. So that is what we are modeling out for a development that we are working on.
building is on fire in columbus it's preferred over existing
Post: New member from Columbus,Ohio
- Developer
- Columbus, OH
- Posts 3,623
- Votes 1,736
Quote from @Celestin Youmbi:
Hello – My name is Celestin. I live in the greater Columbus, Ohio area. I am new to real estate investing and looking to connect with any local investor. Thank you.
nice to meet you my name is rob we focus on investor based new construction wholesale single family and multifamily pricing as a strategy for either hold or spec builds for a profit. good luck! connect with me if new construction in columbus is a strategy you want to learn about
Post: Tiny Home Builders
- Developer
- Columbus, OH
- Posts 3,623
- Votes 1,736
Quote from @Benjamin Carver:
Quote from @Robert Ellis:
Quote from @Benjamin Carver:
@Robert Ellis curious on your anticipated building cost for that
We changed this to a cantilevered front patio plus vaulted 12/12 parallel chord trusses. We will have 22' ceilings inside. Here are the elevations. I am working on construction set. There was a previous home built here so the taps are pretty cheap. I have an investor in NY who is doing this with me I bought the land and am deferring the GC fee. Our anticipated max construction cost is $98,000. It's only about 656 sq ft. Yes some systems are more but some are a lot less like Roof, etc. I'm expecting a $199k sale price. It's more of a concept to test our small build and see how it does but these do very very very well in our market. I wasn't happy with how the first one turned out. This way there is a 150 sq ft front covered porch. I'm going to run electric to that front so someone could put a hot tub. I had an expensive door on it but it wasn't worth the cost.
Great breakdown. Definitely want to get into development in the future of tiny homes, multifamily, etc.
that's where this is from. it comes from our stacked triplex. three of these on top of each other but the single family home we had to add a few upgrades to get our target sale price of $300 per sq ft or higher.
Post: High Equity Driver New Construction Stacked Triplex in Columbus, Ohio!
- Developer
- Columbus, OH
- Posts 3,623
- Votes 1,736
🏡 Investor Alert: Prime Development Opportunity in Columbus, Ohio!
Are you on the lookout for a groundbreaking real estate venture? Pink Development presents an exclusive opportunity to partner with us on a cutting-edge Build-to-Rent Stacked Triplex project in Columbus, Ohio.
🚀 Why Choose Our Development Services?
- Proven Track Record: Pink Development brings a wealth of experience, having successfully executed numerous projects in the Columbus market.
- Innovative Design: Our Stacked Triplex design is set to redefine modern living. With a focus on maximizing space and optimizing rental potential, it's a unique investment opportunity.
- Strategic Location: The development is strategically located in Columbus, offering accessibility to key amenities, schools, and entertainment hubs, ensuring high tenant demand.
- Expertise in Local Regulations: Navigating the intricacies of local regulations is our forte. We ensure a smooth development process with a deep understanding of zoning laws and building codes.
🏗️ Project Highlights:
- Stacked Triplex Design: Innovative layout maximizing rental income.
- Prime Location: In the heart of Columbus, near essential services and attractions.
- Proximity to Key Developments: The area is witnessing rapid growth, enhancing long-term investment potential.
💰 Investment Snapshot:
- ROI Potential: Our detailed financial projections indicate a robust return on investment.
- Tenant Attraction: The unique Stacked Triplex concept is designed to appeal to a broad tenant base.
📈 Why Columbus, Ohio?
- Booming Market: Columbus is experiencing rapid growth, making it an ideal location for real estate investment.
- Strong Rental Demand: The city's economic vibrancy is driving a surge in rental demand, creating an ideal environment for lucrative returns.
📹 Exclusive Virtual Tour: Want an exclusive peek into our vision? We're offering an immersive virtual tour to interested investors. Let the development come to life before your eyes!
📞 Contact Us Today: Ready to explore this lucrative opportunity further? Reach out to us for detailed project plans, financial projections, and to schedule a one-on-one consultation.
Rob Ellis
Pink Development and Construction
614-400-8762
Post: Direct to Builder Build to Rent / Ground Up Spec Homes Columbus OH with underwriting
- Developer
- Columbus, OH
- Posts 3,623
- Votes 1,736
I hope this message finds you well. I am thrilled to share with you an exciting opportunity that has been in the works over the past eight weeks – the development of a strategically designed floorplan named "The Lillian."
After extensive research and market analysis, we've crafted a floorplan that not only caters to the current demand for rental properties but also positions itself as an ideal spec home for resale. Our target market includes investors looking to capitalize on the growing demand for homes between 700-1300 square feet, a niche that has shown promising returns.
Here's a snapshot of what we've been working on:
- Market Research and Design: Our team has diligently studied the market trends, incorporating a linear regression model to identify the sweet spot for a floorplan that optimizes both rental potential and resale value.
- Strategic Partnerships: To enhance the success of this venture, we are open to collaborative partnerships with other builders. Whether you're an experienced builder or just starting out, we believe in the power of combining different skill sets for mutual success.
- Financial Projections: We have conducted a thorough underwriting, providing detailed insights into Internal Rate of Return (IRR), returns, leveraged returns, and more. Attached, you'll find our comprehensive financial analysis outlining the potential for maximizing equity and achieving substantial returns.
- Construction Cost Target: With a target construction cost set at 75% of the appraised value, we are currently working with national vendors to finalize finish schedules. Our goal is to bring the cost below $284,619.60, ensuring a profitable venture for all involved.
The first groundbreaking for "The Lillian" is scheduled for January 2024, and we are actively seeking investors for additional projects interested in breaking ground in either Q1 or Q2 of 2024. If you have any questions or would like to discuss this opportunity further, please feel free to reach out.
We believe that this project not only offers a solid investment opportunity but also contributes to the growth of our community. Attached is a detailed business plan, and we look forward to building houses and partnerships throughout 2024.
Thank you for considering this exciting venture with us. We look forward to the possibility of working together and creating something truly impactful. Please reach out via phone or email if you want to learn more about any of the supporting documentation to this journey or explore what this could look like.
We want to help grow your build to rent (BTR), spec home, or ground up / new construction projects this year! New builds are a great strategy.
P.S. - we are expanding our BTR product to Tampa Florida with lot selection and full turn key construction for investors from start to finish on 2-4 units. Tampa has several submarkets such as St. Petersburg, New Port Richey, Hudson, Spring Hill, Ruskin, Sarasota, and Bradenton that have overlays that allow for multifamily construction. Please DM if interested in this market. We will have our finalized floorplan for Florida within 2 weeks. We already have 12 lots all of which we have visited in person and vetted them.
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Post: Direct to Builder Build to Rent / Ground Up Spec Homes Columbus OH with underwriting
- Developer
- Columbus, OH
- Posts 3,623
- Votes 1,736
Quote from @Magnus Wikström:
Seems too expensive to make economic sense... Sorry
check the underwriting this is just one floorplan we have many plus an infill triplex that has higher returns. 1/3 the profits are lost from resale. thanks for the feedback though just need more support.
Post: Mobile Home Development
- Developer
- Columbus, OH
- Posts 3,623
- Votes 1,736
Quote from @Logan M.:
Quote from @Robert Ellis:
Quote from @Logan M.:
Quote from @Robert Ellis:
Quote from @Logan M.:
Quote from @Robert Ellis:
Quote from @Jay Hinrichs:
other than the obvious land use rules. ( is this Oregon ).
the main thing we found when looking at land to do a park on in Oregon was Absorption.
A lot of money out to buy the dirt then the cost to set up the park which can run 20k plus per pad. then the time it takes to fill the park.
those are the calcs you have to run to see if its going to work.. Of course if your all cash drag and holding costs wont matter in the long run.
So for us they simply never pencil from ground up because of the cost and absorption time.
All these mobile home park investors imagine if they opened up their minds to truck parking facilities and did all the same utility improvement, higher density for parking than mobile home, didn't have tenants, same on site manager. Much higher returns.
Trucking is going through a major contraction right now and if self-driving trucks ever become a thing you are out of business.
you still have to park self driving trucks my friend ... and only some portions of trucking are going through a "contraction". Flat Bed is super strong, aggregates and trucking that supports new construction is extremely strong right now and is booming. I'm not sure if you know much about these industries than what you listen to on the news. Every truck parking facility that is built in our market is fully leased up quickly. And here's a really good kicker, if trucking is in the tanks, all the trucks have to be parked right? There you go!
Your last line is a great point. I am not saying that it doesn't have a use and won't have a future use but it is a lot easier to create a parking area than something with a higher barrier to enter. How long before it is overbuilt? I don't know the answer and maybe it will never get there.
No one is developing them it's too niche. it's more of a local developer type product but they are high cash flow and very low cost to operate and setup and you can pull out a lot of cash from refinance or sale. very little development. just focus away from rural markets you don't want to compete with overnight trucking.
Great information, I image you are trying to buy within metro areas, probably light industrial zoning I would imagine.
Yes in our market it's just general M and then this would be a permitted use you'd apply for. I'd only look for existing zoning. Some times it's easy to split off from existing manufacturing they tend to have a lot of land.
Post: Questions regarding ARV & appraisal
- Developer
- Columbus, OH
- Posts 3,623
- Votes 1,736
Quote from @Brad S.:
Quote from @Robert Ellis:
Then what you want to do is somehow assess a value, or demand, difference, for properties in your subject location (urban). So, you can compare the data in the suburban area to the urban area (your market area) and estimate a location difference. Typically that might point to a % difference, like properties in the urban area may sell for 5% more than those in the suburban area, etc. You most likely need to do this with sfr's, since you don't have enough multi-family data in both areas. I would also ask experienced busy local realtors in your market and see what their opinion is. And as I said in a previous post, you may have to go back multiple years to find new builds in the urban area and compare them to resales and see if you can estimate a value difference.
There is no easy way to do this in that complex situation and many appraisers, IMO, are not skilled or educated enough to do that type of deep-dive analysis, and/or do not get paid enough (in the current appraisal climate) in order to take the proper time and use the proper tools to do what's required. I, myself have had bad appraisals on some of my deals. And even with a data supported rebuttal, it didn't make a difference.
But, on the other hand, those imperfect situations can also create opportunity, since you are kinda setting the bar for new build units in that urban area.
Good Luck!
I am a realtor in my market I'm just wondering your standpoint. Best answer is to create your own comp if you build the same place over and over and to continue to set once a year or so if you can in my opinion. New entry to a market is always difficult until you create some velocity.
Post: Tiny Home Builders
- Developer
- Columbus, OH
- Posts 3,623
- Votes 1,736
Quote from @Benjamin Carver:
@Robert Ellis curious on your anticipated building cost for that
We changed this to a cantilevered front patio plus vaulted 12/12 parallel chord trusses. We will have 22' ceilings inside. Here are the elevations. I am working on construction set. There was a previous home built here so the taps are pretty cheap. I have an investor in NY who is doing this with me I bought the land and am deferring the GC fee. Our anticipated max construction cost is $98,000. It's only about 656 sq ft. Yes some systems are more but some are a lot less like Roof, etc. I'm expecting a $199k sale price. It's more of a concept to test our small build and see how it does but these do very very very well in our market. I wasn't happy with how the first one turned out. This way there is a 150 sq ft front covered porch. I'm going to run electric to that front so someone could put a hot tub. I had an expensive door on it but it wasn't worth the cost.