All Forum Posts by: Robert Ellis

We own a lot free and clear in Commerce, Texas. A college town in North Texas. We already own a triplex in the same city and have had great success with it.

We are in the early stages of planning to develop the lot to build a 4 plex. The property is zoned for apartment units so we are good on that. The challenge is we are limited by lot size. CIty code requires a minimum of 1500 sqft per unit and our lot is just over 6000 sqft. The main challenge is the city requires 2 off street parking spots per unit, but we are hoping to have a solution to that.

Please share what knowledge you have on what to look out for on the construction side when it comes to choosing a GC for the building,

We already have an architect working on the plans.

We are planning for two stories. Two units on the first floor and two on the second. We are aiming for (4) 2 bed 1 bath units with an expected rental income of $1100 per unit.

This is based on our experience with the current rental we have in which we can charge $825 for a 1 bedroom unit that is much older and without central HVAC.

Any advise is welcome.

I'd have to look more for the zoning code in your municipality but it sounds like a zoning concern. normally there is either a rezoning process or use variance process to allow for the difficulties with the site. Both of these are common variances in our zoning code. We construct a stacked triplex in Columbus Ohio and our three most common variances are lot size, lot frontage, and parking reduction. almost every single one has those three and we have 8 or 9 approved so far since we started last year. I'd recommend sticking to triplex for building codes anything over three units in most cities or states is commercial building code. below is what we designed which is three stacked two beds.

0 Votes

Dallas, Texas

Quote from @Lior Golan:

Hello everyone.

I will give you some background on me :)

I have been in the US real estate business since December 2019. I did 4 flips at that time, some of them were with partners, and some of them by myself. My last one was my biggest one which included a 1000 sqft extension to an 1100 sqft single-family house. In addition, it had a full gut with all-new plumbing, electricity, HVAC, etc... the renovation cost 250K+

All projects were done remotely with a back-and-forth arrival to the states. Even though it wasn't necessary because I always had a team that was doing the work that needed to be done physically. Mainly my realtor as my boots on the ground checking the job done by the contractor, and my contractor who was doing the work. Some of the projects were with a local partner as well and then the managing chores were split between us.

The lending perspective was stiff in the beginning, as I didn't have any experience at all, also no credit score, and that project was only by myself, so the leverage was low, but I could work on a low-price property to start.

Fast forward 5 years, I have built a credit score with 2 credit cards under my ITIN of more than 650, and done 4 properties as experience. After doing the last project that included extensive extension, I realized that New construction was something that I was to pursue. Also because of my passion, and also because flips are really hard to find nowadays that have a good margin of more than 10% profit from the selling price.

I started to do some digging in the main market that I am operating at right now and found a nice option that I liked:

Find an old house in a good area in the city metro, demolish and build a new one on top of it a medium to high-end home.
Why? Because the land already has all the utilities infra that it's needed water, sewer, electricity. The area is already developed. And would be an area that people would more like to buy because of the proximity to the city.

But I stumbled on some obstacles:

* Lenders are not lending upon the dwelling if the dwelling is planned to be demolished.

* In Some jurisdictions takes even 3 months to just get a demolish permit (even though permit expediter can be used)

* Because of these 2 above reasons, I would have to come with high money upfront as I would need to buy the property in cash. But even if buying it cash and then financing it, lenders won't finance the dwelling portion... which means more money.

Now, I am trying to pivot and thinking of the next good option. I thought about buying a non developed lot in cash, subdividing it, clean it (take out trees and bushes), get permits, and start building 1 property sell it and then build the second one...

The problem is that I am afraid of going this route because of messing with sewer, water, electricity... I heard that these expenses are really high. Maybe doing a septic tank instead of a sewer, but still, there is a need for water and electricity. Also, the areas that have raw land for that kind of project, are not close enough to the metro city center, hence I am afraid of the demand to buy. And finally, the profit gap can be low as these houses are sold for the median home price

What you guys can suggest/advise from your own experience? Any special lenders that you were using that accept foreign nationals?

Thank you.

Where are you looking? I'm in Columbus Ohio and Miami Florida

0 Votes

Quote from @Genna Golden:

Developers, I am trying to figure out my land value in order to contribute it as part of my equity/gp position in a mixed use development project. I have a pro forma for what we believe is our best/most economical use. (3 stories, not the allowed 4 stories to avoid elevator and higher construction costs) with portion of ground floor being retail. About 25 units. I can work backward from pro forma and use final presumptive sales values. The issue is that I have a loan on the property and existing building. The development/entitlement would have to include paying off balance of $550k loan. If I choose not to level and develop the 3 unit dated commercial building, I need to refi and find new tenants. Beyond the loan payoff I would need to consider the $410,000 put into down payment. I plan to pay approx 200k cash involved in the entitlement process. I'm told that entitled land in the area is valued at $30,000 a unit but will need to verify. Expertise and thoughts welcome.

get with an institutional level lender like Berkadia. get an institutional level appraisal from someone like colliers or something else. put it into an SPV and raise the capital, transact the land at a new price and buy it from yourself. Take title in separate. This is the most efficient way. No bank will give you credit for land or new value. Best way is to bridge it with an equity raise and sell land equity to investors and recapitalize yourself for permitting, etc. We are doing this right now for a hotel deal in Columbus Ohio in this structure.

0 Votes

Salem, Oregon

Quote from @Angela Wang:

Hello World of Real Estate Gurus,

I am new to the community and looking to build serious business relationships and help each other accomplish our goals. I have been house hacking single family homes by myself in Tampa, FL for almost 3 years. I want to scale into BRRRR and house flipping in Tampa and Miami, and eventually commercial retail. I've been traveling around Asia (South Korea, China, Hong Kong, and Singapore) to build foreign investor relations that my networks have introduced me to. I would like to start a syndication and work with lenders, construction companies, agents, property managers, lawyers, and investment experts to tackle investment opportunities. I'm also open to other markets. Let's connect and discuss how we can do business together!

If you want to look at new construction single family as an alternative to flipping in miami I'd be interested in connecting.

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Tampa, Florida

Quote from @Scott Blake:

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $1,220,000
Cash invested: $650,000

The property listed is my model home in my development. I only do ground up new construction. I currently have a little over 6 million in active homes being sold. I am getting ready to do a large multi family development.

What made you interested in investing in this type of deal?

I have been a builder and developer for 30 years. This development is in a gated community nestled in the mountains of Western NC. I needed a model home to promote the homes I build, and it gives people a chance to see the finishes in the homes I have listed for sale during the construction process.

How did you finance this deal?

Construction loan and cash injection.

How did you add value to the deal?

I built it. It appraised at 1.22 million.

Lessons learned? Challenges?

I have been a builder for 30 years. I have built 100s of homes.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a licensed broker, so I list my own properties. This allows me some leverage in case of market downturn and having to fire sale properties and still obtain profit.

did you do a sale leaseback to get the cash out of it and sign a lease? or could you go into the deal structure a little more? we've looked at using profits from the build to prepay rent to investors or put it in an escrow account for drawdowns during the lease period. For example, 3 year subdivision sell out. Build single family home and with profit put it in escrow the whole build time and sell it at market price. not only becomes a comp but their rental is paid for 3 years in the future.

0 Votes

Quote from @Isaiah Cuellar:

Hello everyone, hope all is good. I'll be purchasing a duplex in Columbus, Ohio soon, and I'm looking for a real estate attorney to work with along with lenders and a property manager. I'm an out of state investor but I'll be moving here as well so if you're out there, feel free to reach out! We can hop on a call or preferably meet in person (I'll be in Columbus for the next few days).

don't leave out new construction as an option too. I'd look for a triplex not duplex. numbers don't work on owner occupied duplexes anymore if you are moving here and your intent is to occupy.

0 Votes

Columbus, Ohio

Quote from @Dominic Petoral:

I’m looking to expand my network and knowledge in the multifamily investing space, particularly in the Washington, D.C. area. Does anyone have recommendations for local networking groups, meetups, or masterminds where active and aspiring multifamily investors gather?

I’m especially interested in groups focused on syndication, capital raising, and deal structuring—where investors collaborate, share insights, and potentially partner on deals. Whether it’s a recurring meetup, a paid mastermind, or an exclusive investor network, I’d love to hear about any high-quality groups that have been beneficial to you.

Additionally, I'm open to connecting with investors in Miami, NYC, and Houston who are looking to learn, collaborate, and grow in the multifamily space. I'd also love to connect with experienced investors who are actively willing to collaborate with beginner investors but who already have knowledge of the commercial real estate (CRE) industry. If you're an investor open to helping newer players in the field or know of groups that foster this kind of mentorship and partnership, I'd love to hear about them.

Looking forward to connecting—appreciate any insights!

Thanks,

Dominic

if you have specific ties to miami I'd be interested in connecting. my focus is on ground up construction and land entitlement in all asset classes in Miami Florida and Columbus Ohio. I'm a licensed general contractor in columbus ohio

0 Votes

Washington, DC

Quote from @Chris Seveney:

Quote from @Don Konipol:

Quote from @Robert Ellis:

Quote from @Don Konipol:

There’s lots of confusion, incorrect information, and false assumptions being made about the legality of raising capital for investment. So here is a very short, quick outline of the legal process in the U.S.A.

1. Any capital raised for investment purposes, in which one or more parties is NOT active in the management of the investment entity, is a securities offering.
2. All securities offering must be REGISTERED with the Securities and Exchange Commission, unless the offering is covered under an exemption from registration.

3. There are three primary exemptions from SEC registration. The exemption for intra state offerings (the offer is made to investors residing in a single state), the exemption for investors with FEDERAL accreditation (Federal banks, investment banks of a certain size, Federal funds dealers, etc) and the private placement exemption. Since single state offerings are very limiting, and many states require state registration and compliance with inherent costs, the private placement exemption remains the most popular.

4. There are two methods of “private placement”. The old traditional one was the general exemption for private placement. The sponsor, with the help of a securities attorney, determines that the offering meets the (often ambiguous) requirements for determination of private placement and proceeds with the offering. The advantageous of this type of offering is simplicity, cost, and speed.
The second method of private placement, is compliance with the SEC “safe harbor” Reg D. Sec 504, 505, or 506 b or c. This will necessitate the production of a Private Placement Memorandum (PPM), Operating Agreement, and Subscription Agreement. Current cost are $8,000 to $15,000 for legal fees, inclusive of Form D filing with SEC and notification filing for the states the initial investors reside in. The advantages of the Reg D are (1) if the sponsor complies with the Reg D requirements, the offering as to it being a private placement will NEVER be challenged by the SEC. Further, if disgruntled investors sue, the sponsor has a “definitive defense” as well as a “statutory defense” in a lawsuit. This means that by merely complying with the Reg D requirements, the sponsor should have enough of a defense to beat any lawsuit. I can tell you from personal experience that a small few investors will consider suing EVEN IF THEY MADE MONEY; and that no attorney will take their case (at least not on contingency) if the sponsor complied with Reg D, absence fraud.
As important, all sophisticated investors will only consider investment in private offerings that are Reg D, or occasionally Reg A, compliant. The most important aspect of Reg D is the 506 c offering, which ALLOWS general solicitation and advertising, and eliminates the requirement of the sponsor and investor having an established relationship.

I’d be happy to answer any questions or provide any clarifications; and encourage comments of any kind.

Could you do more of deep dive into Reg A offering and 506 C and when you should do each one? We are doing single development offerings in SPVs through a 506 C offering for projects that are ground up like in Columbus Ohio but for larger deals in Miami Florida where an acre of land can be 100 million dollars in an unlimited height district you really need to be raising from institutions and the largest publicly or privately held companies in the country. We've also looked at subdivision funds that would purchase and develop a subdivision and take it all the way to completion with project sizes approximately 25-30 million in construction, land, and entitlements with exits around 50 million but I wanted to know which structure is best used. these are two very different markets. one we could be fine with check sizes 50k-500k, the other one we would need minimum checks of 3 million and up. it could be a 7-8 year development with a billion dollar sell out if your building is as big as those that are 1-2 million square feet in Miami. thanks for posting hope this isn't too much to ask.

I’m no expert in Reg A, so my help with it will be limited. Historically Reg A was a way for small companies to raise capital in a small PUBLIC offering, with the available use of general solicitation and advertising, often or hopefully leading to having a trading market in their securities. A few things happened in 2015. First and foremost with Reg D 506 c established with the use of general solicitation and advertising eliminating the necessity of going the Reg A route in order to advertise your offering or to not be under the restrictions of a private offering. So essentially Reg D 506 c is a hybrid between a private and a public offering. Reg A is a non registered PUBLIC offering. In 2015 the amount that could be raised was greatly increased and two “tiers” created - up to $20 million and up to $75 million. As a public offering the sponsor is responsible for compliance with many SEC requirements that a private offering under Reg D is not, especially as it relates to reporting financial and other information on a periodic basis with the SEC, providing investors with financial statements, adherence to investor control in electing board of directors, etc. However, Reg A offerings are not restricted to accredited investors as are Reg D offerings.

I’m not sure that Reg A is any more likely to attract “big” capital than Reg D is. I believe @Chris Seveney has successfully completed a Reg A offering. Perhaps he can describe his experience and better answer your question.

Yep we have done a regulation A offering (Getting ready for our next one now). There is also Reg CF. If raising $5M or less Reg CF is the way to go, with Reg A you can raise up to $75M per year (not sure any real estate firm has ever done that with a Reg A). Reg A will easily cost you $100k to get it setup and then the question becomes do you do it on your own or bring in a Broker-Dealer, Escrow Company, Technology Company, Transfer Agent and other players or do it yourself.If you are doing a Reg A do not expect it to be like a 506c where you can do it with one or two people - you are gonna need a team. Also you have to have SEC compliant audited financials. That could cost you another $50-$100k between the firm who does the audit and if you have someone who could do it in house or use a third party.

I would not do a Reg A for a single deal, I would recommend it for an evergreen fund.

Last thingI will mention, we have 800+ investors (I believe or close to that) - your accredited investors will be the bulk of the money.

from what I've seen 506c is how blackcstone even raises their capital. we would have an open ended evergreen fund I believe on the equity side that could push each subdivision development into a sub reit. I have to talk to a securities attorney. our land for a subdivision is 20-30k per acre in our market in columbus so a 50-100 acre tract of land is 1 million to 5 million. we'd need 3 total because we don't want to work with accredited investors unless we have to and the institutions I talk to want checks at 5 million and up so we would subdivide close end funds by markets / metros. Columbus for example would be 3 subdivisions, the ones the institution decide to keep or close on get assigned to the subentity for that market and if they are sold to a builder they'd be closed in a double close, if the fund closes them it would be in the subreit. each subreit would allow us to have development values of 500-1000 housing units and each subdivision approx 100 million so up to 300 million per subreit depending if the institution wants to sell the land or build all the houses or do a combination of both. with larger land tracts we can also subdivide into a planned development and have smaller tracts of land carved out for build to rent, apartments, retail, or other uses so we aren't just going to put in subdivisions. most complaints by municipalities deal with wanting mixed use development patterns. this is nothing compared to the urban stuff we have to do. I think in this structure it would be all 506 c offerings and you are right. we expect each sub fund to be closed and an open ended evergreen fund above that basically acts as a land bank and sells to sub entities post entitlement or that we hold our own holdigns in from the land gains we generate and those can be used as collateral. this is just the structure that allows us to entitle 1000-2000 horizontal lots per years at national scale.

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Quote from @Neal Coppola:

As an investor who had been engaged with Rent to Retirement and Delta Build Services for a new build in Cape Coral, I'll share my experience with the hope to add perspective.

I, like many, found Rent to Retirement through Bigger Pockets and as one that sees Bigger Pockets as a reputable company proceeded with reaching out regarding the opportunities that were being offered. My due diligence on RTR found nothing but positive feedback, an engaged owner, and satisfied investors, mostly here on BP. The opportunity that was presented was that of a new build, 4 bedroom/2 bathroom single family home to be completed at the time in a 12-18 month time period and at a cost much below market value and at current rates (at the time) would have significant cash flow. So, to answer some questions - Why RTR? They provided investors such as myself with an opportunity to own a property at below market value and if I chose to keep it as a LTR, with significant cash flow. Why Cape Coral? Frankly it was the location in which the above was presented as being possible.

Moving on to my experience. From the beginning, most interactions were positive, however being in sales, I always felt like there was a snake in the grass. I was introduced to a lender, an agent to find the land, and a builder, in this case Delta Build Services. I paid cash for the lot and signed a build contract. After over a year, I had yet to have an approved building permit and very long story short, hired an attorney to get me out of the build contract. I have since sold the land. I consider myself fortunate as all in I only lost $20k.

I applaud Adam Bartomeo (as well as other local agents) as he has provided invaluable timely local market insights and information, both here on the BP forums as well as responded to questions presented to him privately.

What I am unable to wrap my head around, and Robert you touched on this, is how do companies such as Rent to Retirement, Delta Build Services, and others come out of these situations with their reputations intact/not be in a class action law suit, etc? RTR continues to have a 5 star rating on BP and is touted throughout the platform. Ironically there is a sponsored at for RTR within this thread.

All in all, I learned many very valuable lessons and hope that other investors that are involved in these unfinished builds are able to get to a point where they can put this experience behind them. All my best.

Great commentary. I've spoken to the contacts on the builder side at rent to retirement. What they did was require framing to be completed and pretty much the structure dried in before they will now market the property to their list. That helps a lot. They are now selling inventory from preferred relationships over the others. I think that's a big improvement. I learned about all of this when I went to BPcon I went and visited Cape Coral and drove the market and all the spec builds too. That's about all that I can say about that part of it.

In my professional opinion, what it doesn't address is the value proposition for firms like this. Build to rent is a great concept. But build to rent DEVELOPMENT is different than build to rent spec purchases. These are inventory homes from big builders that anyone can find. Traditional purchases are 3% and some firms want as high as 5%. They also want us to keep our inventory off market so their value prop can be preserved.

Single family homes even the smallest that we build with tax abatements in Columbus Ohio would be very hard pressed to make the numbers work. In my opinion the concept of a 1-4 family structure and less deferred maintenance is a great one, but their and every other intermediary problem is the value prop makes no sense and shouldn't get those high fees.

The alternative is to build direct to builder and structure it in the same way. Find the land, purchase the land. Construct the home. But the difference is, you should have some site selection inputs. We only do these triplexes in 4 zip codes in our market in Columbus Ohio in 43205, 43206, 43207, 43203 where not only existing multifamily trades at a premium, but new construction single family homes sell at a minimum 25% premium to suburban areas and rents are the same premium. This allows both us to win and charge for new construction and the investor to build 25% below market where they can build, rent, refinance, repeat. Urban adjacent infill 3 family new construction multifamily is by far the absolute most efficient way to not only build but preserve your investment. The difficulty becomes getting zoning approvals, finding land that is a good enough price, and locating them in a good enough area where rents and property values are 25% above the market minimum.

Cape Coral new construction is the opposite. it Is selling less than $200 per square foot. In our market in columbus our goal is to build so you can refinance all your money out. There isn't a lot of room for intermediaries in my opinion because the knowledge gaps are so great at these organizations. These are glorified realtors and people with a little bit of project management experience. But for an investor to be able to control the full process is important.

if we got too busy I have other builders who could build our Floorplans in our market under $200 per square foot but we maintain capacity for that exact reason. I'm glad you made it out okay. This is what we found to work best in columbus it's a stacked 3 family with 2 bedrooms and 1 bath per unit. its 668 square feet each unit and rents for $1600-$1800 and is tax abated. Build cost is $394k and land costs are 50-70k right now in these zip codes. I think single family should be reserved for buidling for a profit and rentals should be reserved for infill and 2-3 units total.

1 Vote

Cape Coral, Florida

Location: Prime site near BZA (within 750 feet)
Size: 4-story structure with 56 dedicated parking spaces
Development Value: Estimated at $2M-$3M upon completion
Potential Revenue: Ideal for triple net lease or long-term operation

Why This Project Stands Out:

Fully Engineered & Designed – Advanced automated parking system for maximum efficiency
Strategic Location – Solves a major parking shortage in the area

Legal & Planning Considerations Addressed – Staff recommendations reviewed, variance justified under Duncan vs. Middlefield
Investment-Ready – High ROI potential with strong demand for dedicated parking

This parking structure is designed to enhance urban mobility, increase property value, and offer a lucrative real estate investment. Despite initial challenges, all necessary approvals and modifications are being addressed to move this project forward.

🚀 Serious investors & developers – now is the time to get involved!

Watch in HERE

0 Votes

Columbus, Ohio

All Forum Posts by: Robert Ellis

Robert Ellis has started 340 posts and replied 3216 times.

Post: Developing a new construction 4 plex Commerce, Texas

Post: Advice for a foreign national flipper who wants to start in new construction

Post: Figuring land value after entitlement with loan and building in place

Post: Looking to Scale and Try New Investments

Post: Model home for a gated community

Post: Looking to build a team

Post: Networking & Mastermind Recommendations for Multifamily Investors in DC,Miami,Houston

Post: A Very Succinct Outline for Legally Raising Capital

Post: Incomplete new builds in Cape Coral FL

Post: High-Value Automated Parking Structure – Investment Opportunity!

Robert Ellis has started 340 posts and replied 3216 times.

Rounded Star Post: Developing a new construction 4 plex Commerce, Texas

Rounded Star Post: Advice for a foreign national flipper who wants to start in new construction

Rounded Star Post: Figuring land value after entitlement with loan and building in place

Rounded Star Post: Looking to Scale and Try New Investments

Rounded Star Post: Model home for a gated community

Rounded Star Post: Looking to build a team

Rounded Star Post: Networking & Mastermind Recommendations for Multifamily Investors in DC,Miami,Houston

Rounded Star Post: A Very Succinct Outline for Legally Raising Capital

Rounded Star Post: Incomplete new builds in Cape Coral FL

Rounded Star Post: High-Value Automated Parking Structure – Investment Opportunity!

Post: Developing a new construction 4 plex Commerce, Texas

Post: Advice for a foreign national flipper who wants to start in new construction

Post: Figuring land value after entitlement with loan and building in place

Post: Looking to Scale and Try New Investments

Post: Model home for a gated community

Post: Looking to build a team

Post: Networking & Mastermind Recommendations for Multifamily Investors in DC,Miami,Houston

Post: A Very Succinct Outline for Legally Raising Capital

Post: Incomplete new builds in Cape Coral FL

Post: High-Value Automated Parking Structure – Investment Opportunity!