All Forum Posts by: Simone Johnson

Hi Stephanie! Welcome to the BP community! You have definitely come to the right place. There is a wealth of information here on the site to start with. I am not sure if you have listened to any of the podcasts and if you haven't.... You should!

This is a great start right here as well.... it's the Ultimate Beginner's Guide to Real Estate Investing. If the link doesn't work it, you can find it under the Education, then guides tab.

https://www.biggerpockets.com/...

I would also recommend reading through all of the READ FIRST posts so that you can learn how to effectively ask questions and know the rules of posting. I have made some great connections and I am learning SO much on here. It's great that you are starting now. One of the things I hear the most about regrets from investors is that they wish they started sooner! So cheers to your new ventures and welcome aboard!

Originally posted by @Daniel Stys:

Simone, I couldn't agree more the recommendations above.  I have some Metro Detroit relationships and would be happy to try and connect you with some local architects, developers and contractors to help you with your project. If you are interested, please feel free to reach out.

Daniel Stys

Thank you. I'm so fortunate to have received such great recommendations and I welcome your assistance.

Originally posted by @Scott Krone:

@Simone Johnson With regard to a PUD (Planned Urban Development), most communities have one, two, or possibly two tools to guide you. They are the zoning code, community development plan, or possibly both. The community development plan identifies how a community would like to see their community change with respect to zoning. If there is not one, then the zoning code identifies the procedures for changing the zoning. That being said, it is not a given it can or will be changed.

The local Director of Community Development (typically within the zoning or planning department) should have a good sense of what the Zoning and/or community board/council is seeking, and if they are amenable to a change.  50,000 sf is just larger than an acre.  Without seeing the survey or the area, my experience suggest the only way to get both commercial and residential would be a mixed use condo/apartment structure (first floor retail, upper floors residential).

When going through the PUD process, the community assesses not only the concept, but also the development team to determine the likelihood of success. The team is typically the Developer, Architect and Contractor. In addition, a strong attorney who is familiar with PUD's is also important as the PUD will specifically state the program outlined in your submission package.

Our experience has varied from 60 days for an incredibly short PUD process with a zoning meeting and council meeting (where the use was approved but required updating) to 9 months and submissions to Architectural Review Committee, Zoning Committee, Plan Commission, and City Council. Being able to assemble a complete and thorough package to address all the requirements is critical. The zoning code should outline the requirements.

 I don't really know where to start to thank you for this. I am SO grateful for this insight. This is exactly what I needed. I now have a foundation as to who I need to seek out and what to do. I really appreciate you taking the time out to spell this out for me, you have no idea.

Greetings all,

I have finally worked up the guts to make my first cold call. The home is in Atlanta, GA and is a 3/2.5 home sitting on 2.16 acres on a quiet street and built in 1995. The home has been boarded up for about 8 months, empty for about a year or so. There were squatters in the downstairs and have messed up the basement apartment. I haven't been in the property yet, but Code Enforcement gave me a decent visual of how the property looked and told me the violations were more cosmetic than anything.

The owner, who I think bought it from a wholesaler, has just been absentee and now the home is facing abatement and a warrant has been issued for his arrest because he missed one or two court dates. I finally called, but he didn't answer so I sent a text with my name informing him that I live on the same street and was calling about the property.

When he didn't reply, I asked him if he knew that a warrant may (it was) have been issued for him due to missing court dates and that I would like to help. He replied immediately, and said he wasn't aware. I told him to check and that the home is facing abatement. I am sure he knows it is because Code Enforcement said he has been notified and they have been trying to get him to manage the property properly. I was able to get his correct cell number from them.

I asked if he had a few moments to talk because I wanted to see if I could help him and he said later today. I asked him for a specific time so I can make sure that I wasn't in another appointment and he said that we could talk today at 5pm.

Any advice on what questions to ask when I get him on the phone? Any creative strategies to get him to sell this home to me. I would like to live in this home and hack it. It needs some work such as a new porch in the back, and I know there are some holes in the walls downstairs but not sure to what extent.

In 1995 it was 80K.

It sold for 105K on 2/7 and then sold for 118K on the next day.

I know he hasn't done anything to this home. It will need work. I just don't know what to aim for because I don't know what really needs to be done.

Any advice?

Originally posted by @Account Closed:

Honestly, you need to do a feasibility study, or pay for one, to see if you even have a viable, money making idea for the area before you do anything else. 

I'm assuming you are an investor, and the point of investing isn't just to do things, it's to do things that have calculated chance at giving you a target return.  

 Thank you for your advice. This is exactly what I need, a feasibility study. I need to find out who exactly to speak to in order to ensure that this is a profitable venture. Have you done one before and if so, how did you go about it?

Originally posted by @Kevin Mitchell:

Hi, Simone. A couple of things come to my mind about your situation. 

(1) I have a good developer contact in that area who deals with large properties such as what you're speaking of. I'm happy to connect you. 

(2) An architect is a good idea, however, to ensure you're goal can be met and identify what's needed for zoning compliance, check the local zoning department. 

https://detroitmi.gov/departments/buildings-safety-engineering-and-environmental-department/bseed-divisions/zoning-special-land-use

(3) I recommend having an NDA/NCND between you and ALL parties you conduct business with regarding investing. Have it reviewed by a RE attorney from the respective state that NCND applies to. This will ensure you're legally compliant regarding contracting and RE law. I use Legal Shield and have had wonderful success with them. 

Thank you so much for this great advice. I would definitely welcome and appreciate speaking with someone who has experience. I will also delve into the zoning division and thank you for this link. I will also get a NDA/NCND  drafted immediately. I really appreciate you taking the time to respond to me. 

@Bill Hampton

Thank you so much. I will join. I am committed to this.

@Scott Mac

Have you completed a syndication before already? We’re you active/passive? How did you learn?

@Scott Mac

Hi! Thank you for your advice! I was thinking that an architect is the right start. When you say “that you get along with”.... have you had an experience where this architect hindered your efforts.

I will need to raise money for the entire project. The property is about $150k and over 50k sq ft. I want to actually keep the structure and develop on and around it.

Do you know about how much I should expect to spend on an architectural consult? Do I have them sign a NDA to prevent them from sharing my idea?

I was taken advantage of once and shared some information about a property to ask questions because I had a great deal and they went and bought and built on it. Didn’t include me or even pay me a finders fee. I still have salt on my tongue behind it and want to prevent this from happening again.

@DJ M.

Hi! Thanks so much for replying. I’m trying to figure out who? Like specific roles or titles of people? It’s zoned for special purpose in a single family residential area, but it’s an old business building that has been abandoned for about 5 years.

I don’t know if it’s possible to rezone the area for commercial/ residential mixed use.