All Forum Posts by: Robert Frazier

It's a banner week for our fledgling development business. After  3.5 years we have permits for a 17 unit redevelopment project.

We had hopes that we would break ground within a year of buying the property....that fell by the wayside for 2 reasons:

1) we had worked with the city to increase density through an affordable housing scheme that did not go as planned. One of the project neighbors slowed the project by 6 months by appealing the staff decision through design review, planning and zoning and city council. The city nor our architect understood the structure of the affordable housing regime that allowed this delay.

2) our architect was incompetent in moving the project forward. This is something you can't always know before you start...he came recommended by others. But it turns out that he is a serial sand-bagger. Slowly moving projects when forced to by clients.

I should have fired him 2 years ago but I was pot committed and didn't have the balls to start over with a new consultant.

What I learned is that moving on quickly from an underperforming consultant is vital.

If you own 25% or more of any LLC you are required to register with a FINCEN ID for beneficial ownership by January 1st or you could be subject to $500 per day fines.

Have you taken care of business?

 With our structure, the development company owns about 45% of the equity when complete, and I own 50% of our company.

So it will be about 22%

 Love to use comparisons to value the market. This is the way to make any decision. See what other people are willing to pay.

I am learning about Fix and Flip strategies (I've only done developments).

I want to grow my income from Real Estate while working on developments (ie waiting for zoning, permits and building)

What have become your go to finishes for fix and flips to maximize value? I'm looking at the bottom third of the market to focus (in Boise that is under $450k). 

Are you doing butcher block, quartzite or masonite for counter tops? What color are you painting your stock cabinets? What flooring choices are best bang for buck in each area of the house? Finishes for fixtures? (Brass, brushed nickel, etc).

Love to hear how others are making these decisions.

You can do the process under an LLC and sell the LLC to a non-profit.

What is your process for underwriting a rental by adding an ADU (addition or division)?

Are you getting estimates in DD to decide?

What forces more equity growth (addition or division)?

All of my investing has been in re-development and I’m looking to learn the flipping business for income.

I can see the process and opportunities for properties worth flipping, but I’m trying to see the way to build a business around flipping for income while I work on larger re-development opportunities.

where have you learned financing and operations?