All Forum Posts by: Steven Clark

Can you convert the land value into a fixed unit instead of a percentage? Perhaps convert it into shares and base future partner shares on that value. i.e. if the property is worth $500K, the owner gets 5 shares then all other buy-ins are based on $100K/share or something like that.

https://www.biggerpockets.com/users/allisonlin1215

Sean,

Seems you like you need to phone a friend or two and raise enough capital for the down. On a challenging lot it doesn't seem like a 1 or 2 year note would be too hard to negotiate for owner-financing. Otherwise perhaps you could tie up the property with an option contract. I could see you facing some price-risk in that scenario however. 

Good luck and let us know if you are able to put together a deal. 

Safer is relative, a new development on the edge of nowhere vs the last vacant lot in a desirable and walk-able neighborhood wouldn't exactly compare. Make sure you account for sewer and water cap fees in your build cost projection unless you know they've been paid by the original developer. One key advantage I could see in a new neighborhood is simply the free exposure of buyers interested in the new subdivision especially if you can offer better finish or a more appealing design than the competition if it's all fairly cookie-cutter. 

A 4-stop may cost you in the neighborhood of 80-100k. Beware in 4 stories and above in residential the building code requires an elevator that will accommodate a stretcher. That generally pushes you into a minimum 3500lb capacity elevator. If you go online to Otis, Schindler, or Thyssen Krupp you should be able to find the number of a local rep who can give you a solid ballpark number for your area.

In the northwest I've seen builder's cost before overhead and profit go from $75/SF to over $100/SF for the average custom single family in the last 5 years. @Paul Halphen is on the money with his labor and sub shortage comments.  We're seeing a fair amount of commercial construction and an enormous apartment construction boom and every single sub is booked months out.

You're question is huge, if you can find other local developers they would be your best resources. I've worked as an architect in the Seattle and King county area and give you just the briefest of overview of the planning and permitting process.

I would start with the zoning code and review the development standards for the adjacent single family zone. You can do a walk-in meeting with a planner at Seattle DPD, King County, Renton, kent, etc. wherever the lot is and they can give you the basics if you can't find it online. You will be looking for minimum lot size, maximum unit density, setbacks and street development standards. Combing through those should give you a ballpark of what will fit physically. 

Each of the local jurisdictions has their own process for lot subdivision. Again, I highly recommend an informal meeting with a city or county planner who can give the list of requirements for starting the process. Seattle is significantly different than the county or other cities. At minimum you will have to apply for the rezone and replat/subdivision to start. You will be required to complete a SEPA, and likely a master-use-permit or a PUD permit depending on the jurisdiction. There will be a public notice and public meeting for approval of those changes and the subdivision. If you're wanting to develop what is now a public soccer field you can expect a significant resistance and NIMBY response.

Find a professional architect or planner to guide you through the site selection and planning process. They will have a team of consultants (civil engineer, landscape architect, etc.) available that they've worked with before to help you finish the design process. If you know an architect or someone in a related field, buy them lunch and pick their brain. If not, make a few calls and see who's willing to give you a bit of time, it's good marketing on their part. I've done site layouts for developers my firm worked for before either on a time and materials basis or for free depending on the previous relationship. 

I can recommend a few local firms. (I have no financial interest in any of these) Triad Associates of Woodinville, Rolluda Architects in Seattle, or Milbrandt Architects in Kirkland. 

@Guy Azta I'm an architect not an HVAC engineer but I think atmospheric means it runs at a static vent pressure without a blower. There is typically a maximum horizontal run allowed before turning vertical or something to that effect. If it's too far from the sidewall you've got to go up unless there is an option from the mfr for a fan kit. Check with A.O. Smith for the options on that unit. 

The exhaust flue to the roof shouldn't be too expensive but may require being in a fire rated drywall shaft if it goes through multiple units on its way up. Once you confirm the requirements with the mfr a good local HVAC installer should be able to give you the best advice on a solution. 

Best of luck

Sketchup is the easiest, most approachable design software to get started, it can be used for design modeling as well as construction drawings with the layout tools. Also it's free.

I don't see value in replacing a 3-4 year old unit. I would get a 2nd estimate on the repairs also.  If you want to get into the numbers yourself you can get a pretty quick life cycle cost analysis on the equipment options with this calculator from energy.gov  https://energy.gov/eere/femp/energy-cost-calculator-electric-and-gas-water-heaters-0