The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

What would you do?

8 SNAKE

Contributor
User Power
Value/Post Ratio
18%
Aug 15, 2007
224
41
Midwest
I love how creative some of the ideas are on this forum. Lets take this one for a whirl and see what comes out.

Say you've got a business partner with a ton of experience in construction. The partner has approximately 90-120 days to devote to a project on a full-time basis, while you are mainly the financial half of the plan but will also contribute some sweat equity where needed. You need something in your own back yard and live in an area of the Midwest that never had a real estate boom or bust, just steady growth. The economy and job markets have remained stable and show no signs of change in the near future.

What do you do and why?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Allthingznew

Contributor
User Power
Value/Post Ratio
13%
Aug 26, 2007
408
52
Have the 90-120 days started or can you start them when you choose? Planning a project takes quite a bit of prep time before the ground is ever broken. So whether or not the clock is already running influences what to do.
 

ProInvestor

New Contributor
User Power
Value/Post Ratio
13%
Aug 15, 2007
77
10
Australia
First you have to find a site and work out the numbers that would support your investment.
Then you have get a architect to design something.
Then one has to get council/local government approval.
Then one has to get finance.
Then one has to construct the project.

Within 90 days it would be very difficult.... And thats assuming NOTHING goes wrong....

First off I would have a look at demand for units or shops (strip mall).
I would probably go residential and would build some inexpensive units.
Then I would probably lease option them (or rent them depending on demand).

Of course there has been no info provided so I couldn't even guess at what the figures would be and whether it is a good investment or not, but the above is in my opinion provides the less risk with some upside... (excluding for the fact one is probably going to run out of time in construction).

Rgds.
ProInvestor
 

8 SNAKE

Contributor
User Power
Value/Post Ratio
18%
Aug 15, 2007
224
41
Midwest
Have the 90-120 days started or can you start them when you choose? Planning a project takes quite a bit of prep time before the ground is ever broken. So whether or not the clock is already running influences what to do.

Clock has not started yet.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

nomadjanet

Contributor
User Power
Value/Post Ratio
17%
Aug 28, 2007
301
50
TX
90-120 days from the ground up might be a strain. We are coming up on Fall, bad weather & holidays. On the other hand, can you get into a multi family rehab? Is the money sufficent for this? Are there any available that would cash flow? Are there any that could turn condo & sell? Small strip center would also be a good choice but it is usualy easier to money out on residential if time is short. That is a generalization of course and your area may be different.
Janet
 

EasyMoney_in_NC

New Contributor
User Power
Value/Post Ratio
5%
Sep 9, 2007
348
16
Wilmington NC
whats the structure of the deal between you and the partner?
is he getting paid? what? when and how?
why does he have the time?
is what you want to build, within his normal product?
do the numbers, having answered above work?
sale or rent of this product? who holds it once finished?

there's not near enough info to answer a question like that. I would say jump all over it if things look good, but I know what I'm doing (I'm a GC)and could easily assess a situation like this one. Not knowing anything about you or the deal.......?
 

Allthingznew

Contributor
User Power
Value/Post Ratio
13%
Aug 26, 2007
408
52
If you can start the clock when you want, you might could set up a small retail strip mall kind of builing maybe 10k-15k sf. You could do all the prep work so ground could break when the weather is good and the TI's don't need to be done by your general, your builder is building a shell.

nomadjanet had a good idea if you can line up a larger rehab project or a few rehabs back to back.

I don't know if there would be enough of a market for it, but you might be able to spend the time with the contractor acquiring knowledge and write a book.

A how to from start to finish of a project. Ins and outs, tips, tricks, "secrets" of the develpment trade. These would be things the reader could either do for themselves or have confidence in believing the contractor is acting in their best interest or knowing if he's not. If you have a contractor with a good many years of experience he may have seen a lot of things, both good and bad that owners have done that could make a difference for a person starting out.

Waiting for plans and permits can be quick and easy or slow and painful, and can even hold a project up to the point it no longer makes sense. What do you do when the neighbors don't approve? How do you get them to? Your contractor might have some great experiences to share.

There was a thread somewhere on here asking why more people don't go into developing. Money was a prime factor, but I would guess know how is key too.

If a person new to develping could have a roadmap and know the steps and what to expect, some of the ways around obstacles, that would be less money on mistakes in the learning curve. Then their biggest challenge is getting past their own fear, and finding the financing.

Maybe your contractor has this kind of info or maybe not, but what if he does? Just something different than the obvious. Good luck.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

8 SNAKE

Contributor
User Power
Value/Post Ratio
18%
Aug 15, 2007
224
41
Midwest
whats the structure of the deal between you and the partner?
is he getting paid? what? when and how?
why does he have the time?
is what you want to build, within his normal product?
do the numbers, having answered above work?
sale or rent of this product? who holds it once finished?

If we end up structuring a deal, it would be a split of equity and not any type of pay for work being done.

I'm not sure that I want to build from the ground up at this point. I'm leaning more toward a rehab (both new and rehab fall within his normal expertise/experience) due to the timeframe. It's possible that I could end up renting (I'd plan that into my exit strategy to make sure that the numbers worked either way), but I would prefer a sale at the end of the project. My goal is to build up my net worth right now.
 

Jason_MI

New Contributor
User Power
Value/Post Ratio
8%
Jul 25, 2007
106
8
Is the plan to hold it or sell it? Your market will dictate the type of construction, and 120 days is enough time, depending on how tight the contractor is with his subs and scheduling.
 

EasyMoney_in_NC

New Contributor
User Power
Value/Post Ratio
5%
Sep 9, 2007
348
16
Wilmington NC
If we end up structuring a deal, it would be a split of equity and not any type of pay for work being done.

I'm not sure that I want to build from the ground up at this point. I'm leaning more toward a rehab (both new and rehab fall within his normal expertise/experience) due to the timeframe. It's possible that I could end up renting (I'd plan that into my exit strategy to make sure that the numbers worked either way), but I would prefer a sale at the end of the project. My goal is to build up my net worth right now.

Again I know what I would do. I'd build and buy him out at the end (his pay). Rehabs always rear some ugly unknown head, at least with new.....its new, no surprises. New also rents better. If you want to build YOUR net worth why have a partner. Give him a flat fee to build some homes for you, keep the fee reasonable with the assumption that you'll be over seeing the final stages of completion and be done with him at the end. Go re-fi out of the construction $$ and be on your way.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

jimculler

New Contributor
User Power
Value/Post Ratio
3%
Sep 14, 2007
60
2
Tampa Bay, FL
If you had enough money, build or rehab multifamily. More investors are going to be interested, and your profits should be quite a bit more.

If not, I know some guys who build spec homes one at a time and do ok. Although it is a lot of work, for a much lower margin.
 

yellowpad

PARKED
User Power
Value/Post Ratio
0% - New User
Oct 3, 2007
30
0
52
Orange County, CA
If I have 90-120days on "standing by" status to help out if needed, I would take my weekend toys out and go golfing daily. If I continue to do this for that amount of time...I would be a good player by the end of this project. If I keep this routine up, I would be a greatttttt player after a few projects done :)
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top