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The past week was cumbersome. Typical in development, we had a large delay come up, and also a great new partner join the team.
Our project was set for Planning Commission review on May 3rd. Our General Manager asked for another three weeks before closing. The owners of our lot, now in their early 80’s, who have an lawyer about the same age, said no way. Not only did they say no way, they personally went down to the Planning Department and made sure our application was pulled.
That alone is a set back of two months. After having made it to a meeting date, we were pretty positive. Now, we’re still with a good attitude, but funding was awry.
Funding the project, we are $185,000 short of our needed amount to buy and develop.
Real estate has a powerful aspect to it - people. I haven’t been in my new hometown for but three short years and I have met people with numerous different bank account values. For this project, which the total value is less than $1m, many people won’t take on a project this small. I had to find someone who wanted a starter project.
In less than a week I had two sets of people ready to take on the project after they saw our cash flow projections, as well as demographics related to demand. What a good day!
At this point, a syndication is started and partners get comfortable with each other. One set of partners wants to be silent, while the others want to be included to a degree with the General Manager running the project. At this time, we have all green lights to move ahead.
Now back to buying the land. The price is $140,000. The listing broker said they would reject anything below this number. We offered $120,000, close in 2 weeks. A couple days later, the rejection came back. In my experience, $120,000 with no contingencies and all cash would make me think that I had a pay day coming, if I were a seller. Today, we’re rallying around another offer, and due to a set of partners being out of country, a bit of waiting is going on.
For me, this looks good. Even if this property is unavailable when we move forward again, there are many open lots available for our model. The deal of a lifetime comes by once a week. If we can get our first choice, it will save time and lots of money from having to start over in some ways.
Our project was set for Planning Commission review on May 3rd. Our General Manager asked for another three weeks before closing. The owners of our lot, now in their early 80’s, who have an lawyer about the same age, said no way. Not only did they say no way, they personally went down to the Planning Department and made sure our application was pulled.
That alone is a set back of two months. After having made it to a meeting date, we were pretty positive. Now, we’re still with a good attitude, but funding was awry.
Funding the project, we are $185,000 short of our needed amount to buy and develop.
Real estate has a powerful aspect to it - people. I haven’t been in my new hometown for but three short years and I have met people with numerous different bank account values. For this project, which the total value is less than $1m, many people won’t take on a project this small. I had to find someone who wanted a starter project.
In less than a week I had two sets of people ready to take on the project after they saw our cash flow projections, as well as demographics related to demand. What a good day!
At this point, a syndication is started and partners get comfortable with each other. One set of partners wants to be silent, while the others want to be included to a degree with the General Manager running the project. At this time, we have all green lights to move ahead.
Now back to buying the land. The price is $140,000. The listing broker said they would reject anything below this number. We offered $120,000, close in 2 weeks. A couple days later, the rejection came back. In my experience, $120,000 with no contingencies and all cash would make me think that I had a pay day coming, if I were a seller. Today, we’re rallying around another offer, and due to a set of partners being out of country, a bit of waiting is going on.
For me, this looks good. Even if this property is unavailable when we move forward again, there are many open lots available for our model. The deal of a lifetime comes by once a week. If we can get our first choice, it will save time and lots of money from having to start over in some ways.