All Forum Posts by: Wryland Reed

 @Scott Morris:

I am looking in the Miami area, as close to Miami as possible.

Homestead can be 2 hours+ in traffic, so I am afraid that is too far, I will look at anything in the Miami area.

I have raised $150,000 from investors and am looking for land to purchase. What is the best way to find land that hasn't hit the MLS listing system... what sources have you used for finding land that you have purchased that helped you get a good deal?

I am working creating the best terms for an investor on a 15,000 sq ft lot where 2 things can be built:

12 2 bedroom apartments that rent for $2,200 each. $26,200/month & $314,400/year. NOI as 60% of gross= $188,640 / 5 CAP = $3,772,800. potential sale price - taxes - realtor fees - loan origination - holding costs.. Hedge funds will pay 5-5.5 CAP. Or this can be held for rental income.

For 6 3bed 2 bath homes, building at about $130/foot @ 1400 sq ft = $182,000 × 6 = 1,092,000 + 545,000 land = $1,637,000 build and acquisition cost. Sale price $700,000 × 6 = $4,200,000. Profit =2,563,000 - taxes -  realtor fees - loan origination - holding costs. We do have to get confirmation that the city will allow this type of construction.

We are looking at bringing in an investor at @ 6% preferred return + 40% profit. There are 2 $1billon+ developments in the area that are increasing the value and gentrifying this area significantly and will continue to do so over the next several years.

If you have experience building a multihome project, or a 6-12 unit+ apartment complex with investors, what investor terms did you provide and what advice do you have for this type of project and how do the returns and expenses compare to your area?

We are building new SFH in the area for about $150k home + 250k land= 450k-400k with a sale price of $850k with crews and 4 flips under construction in the area with good relationships with our builder, and contractors working on these projects.

Sorry for my typos, sent that on my phone. Just learned to type yesterday 😂

Good idea to weigh that out. I think it all depends on your end goal.

If you are getting approved for 100k, is that because that is the price of the investment you are purchasing? If that is a piece of land or land with a structure to rehab.. using leverage and getting a loan is a good idea to help you extend the power of your money, and also build more credibility with your lender for larger loans and better terms in the future, all while increasing your credit score for more loans down the road.

The only downside is if you want to take out another loan while you are still inbthe 6-12 months of rehab on that property, otherwise, you are building credibility with your lender and all the points mentioned above.. which are all positive.

So if you goal is to start multiple projects, yes, the 100k loan can keep you from getting an 850k loan at the same time.. but you probably won't be extending yourself and doing two projects at the same time... so there is no loss from that aspect.

I see it as more of a benefit, than any negatives. Also starting with 1 project of any size is better than waiting and trying to start a much larger project later... so if you don't have a plan to start two projects, this is definitely a winner if you are happy with the cash flow the project will yield, and the cash out refinance, and equity you will hold in the property... again, I think it goes back to your end goal.. are you trying to get homes to BRRR to hold with the highest possible cashflow? If yes, start if this will net you a good monthly positive cashflow. If not, go to the next deal which may be 500k, but net you 5x more monthly, and take the SAME amount of time to rehab and BRRRR that, but just find and start soon and the $500-800k BRRRR would by far be the better option for higher monthky positive cashflow...that would be your only loss here..inneficiency of a smaller project that could take the exact amount of time (think of code compliance or covid complications making your smaller project take a year... the same time a larger project could take) as a bigher price point project which yields 3-5x more a month.

I have a local real estate investor partner that has used a lender for his projects and he gets very good terms with just 10% down, no interest until 2 months, and they have given him better and better terms after first starting a terms that weren't as good. They may be worth giving a call. Message me and I can get you their info, I haven't used them myself, but we may be using them this month as part of a new project we are getting close to breaking ground on

I am doing my first investment project and have raised $150k. I looked at bank terms today and it looks like about $75k in interest after 2 months, origination, and other bank fees for a 1 year new construction loan on land.. though they only require 10% down, so I am looking for hard money lenders now to get more reasonable terms. Where is the best place to find hard money lenders for new construction (with experienced real estate partners/investors)? Where have you found hard money/private money lenders in Miami?

What hard money terms and fee structures are standard? Can you please include a percentage and itemization as well as term length? I have several people that are potential investors to ask, but would like to offer them standard hard money terms to consider.. or find someone with experience lending hard money. Thank you for your help! Figuring this out day by day, but hit the ground running every day!

@Lance Pederson Thank you! Can you give details on why there is a % preferred return followed by a x/x split? What does that mean and why not just a straight split? 

Also as far as structuring this, I spoke with an attorney that wanted to charge a LOT to set up a fund.. kind of like insurance, the better the contract, the more insurance on the investment structure.. which leads me back to door #1 where I just sell these as individual home projects with a blanket operating agreement from a real estate attorney project by project, and simply offer 10 in bulk, and if I sell 5 or 10 at a time, deal with them as single projects with single operating agreements on each property.

Are you part of an investment fund, have you set one up, can you provide more details on your experience in this?

I am working on a new construction project to build a new home or two on our first project together as a group of 3-4. 3 partners have a quite a bit of experience on their own real estate projects and have portfolios.

I am bringing everyone together for this and also have several investors that may be part of the project or part of the next, so I am starting a fund to build 10 of the same model home in the same target market. Initially it is about 450k cost with 850k sale price. Building 10 of these with 20% down + a buffer puts an initial raise at $1million for a fund.

The question is- if you have been a part of a real estate fund, what is the best way to structure something like this? I prefer to package 10 new construction homes to build and sell in one fund raise, and then begin when the fund matures because I may already have it funded, or can within 6 months or less if some interested parties don't find it to be the right fit. I assume this is better than raising for 10 single projects. Can anyone with experience or part of a fund like this, or anyone that has raised a fund like this offer advice on the best structure for new construction build and sale?

 I love door knocking and meeting home owners and getting connected with residents in target areas for projects.

I am specifically looking for land, and often find all types of real state for sale such as single family homes with air b&b rental units, duplexes, triplexes, multi-family, apartments, vacant homes, all kinds of things by asking owners if they would sell their own home or if they know of anyone selling land, a home, business, apartments, or commercial space.

In the Miami area.. what is the best way you are using to find buyers for these type of deals to sell as a lead or wholesale (not going to list these as a realtor), what groups do you network in to find buyers? Do you have a good example of a recent few buyers you found for your own deals, and how did you meet them (looking for networking groups, groups of people, and places either online or other places)

Turns out that it is 2 lots away from a multi-family zoning, thank you! Just found these 2 sites when looking for land for a build project. Still wwiting to hear back on a confirmation for another home's zoning.