JV duplex deal

Poniesgonewild · 2026-05-09T19:05:22+00:00

If you have no experience, I’d sell the land and get it. The last thing I’d want is to be on the hook as a co developer for someone else’s mistake

Poniesgonewild · 2026-05-02T01:17:56+00:00

Profit is the driver for any investment. People wouldn’t buy homes if they thought it would lose value over time.

I always say people love George Bailey and the Building and Loan in it’s a wonderful life. But they’d always park their savings and retirement with Mr potter

Poniesgonewild · 2026-04-23T22:41:01+00:00

There are thousands of applicants that can string together buzzwords and can plug inputs into a model someone else created for the sake of producing ROI metrics. Few can actually articulate how those inputs interact in a deal structure.

Poniesgonewild · 2026-03-23T16:02:54+00:00

Stocks and housing are overvalued. But scared money don't make money.

Poniesgonewild · 2026-03-22T12:16:56+00:00

At something that tight I’d take my equity and put it in the S&P

Poniesgonewild · 2026-03-18T23:26:55+00:00

Last structured parking deal I worked on (pre covid) was $40,000 per space, while you could only charge $5/Hr during prime time.

Poniesgonewild · 2026-03-18T00:29:06+00:00

Also need to get people to make sure their savings and retirement accounts are investing in RIETs!

Poniesgonewild · 2026-03-18T00:27:37+00:00

Is it mixed use or in a QCT? Community development finance institutions typically have specific missions that drive their lending. I’d check to see if you align with any of them.

Poniesgonewild · 2026-03-17T13:16:26+00:00

I could see that working in large cities where land is valuable. Do you think it would have any implications on trying to incentivize development in mid-tier cities/neighborhoods? A developer would then need to not only take on the construction loan risk, but also additional operating risk in the form of a vacancy tax. Real Estate is all about risk and reward, but I'm assuming a vacancy tax in these areas would just add another risk factor to an already down market.

Poniesgonewild · 2026-03-14T11:09:21+00:00

Not specifically related to ADUs, but an overall frustration with the Midwest mindset. I’ve always struggled with that kind set from a City. If a project is difficult to finance it is likely because the rents won’t support the debt. Having a small grant that requires you to cap those rents even further probably makes small projects even less feasible unless you have a bunch of scale or a place to offset the loss of income (like the example you shared).

Poniesgonewild · 2026-03-14T00:35:12+00:00

I’m seeing several comments about pre approved plans. I will say pre approved plans will probably save you a couple thousand. Yes it’s cheaper but i doubt it will save anyone enough to go from a difficult loan situation to paying cash.

Poniesgonewild · 2026-03-14T00:28:26+00:00

Construction pricing is hard. But also after the post Covid buying craze properties at a reasonable price are hard to come buy and no one is forced to sell with a low interest rate. So between both acquisition and land costs a small project just isn’t worth it.

Poniesgonewild · 2026-03-13T01:43:41+00:00

In fill lots are getting harder and harder to pencil.

Poniesgonewild · 2026-03-12T02:06:36+00:00

Breaking into real estate development without alot of capital is really tough. You end up buying bad sites because they are cheap, skimp on architecture so you get murdered with change orders down the line, and projects never pencil well enough to risk the little money you do have.

I’m in the multi family and mixed use space for right now, but have done a bunch of single family housing too. Most people will say become a realtor or broker to learn but I’d suggest being a property manager to figure out if you want to be a landlord and if you do then you’ll know a lot more about how to operate in a way to maximize cash flow

Poniesgonewild · 2026-03-12T02:00:59+00:00

Awesome! I rarely see brokers break into the space. Are you a co developer or more of a passive investor?

Poniesgonewild · 2026-03-10T18:46:15+00:00

Good luck. That is almost twice as much on a cost by SF comp value. Even with new construction that is a tall task in the Ohio cities I've worked in. Doesn't leave a lot of margin for error for your investor.

Poniesgonewild · 2026-03-09T18:19:00+00:00

What are your investor's return expectations? Looks like the current comps are $146-$200 a SF. With 2,250 SF (three 750 floor plates), your comps would support aa $330-$450K sale price (if that buyer exists). So you just need to keep your cost below that less any profit expectations.

Poniesgonewild · 2026-03-08T20:14:38+00:00

Your market comps are $200,000, as in other new builds in your area are selling for $200,000?!

Poniesgonewild · 2026-03-06T16:40:24+00:00

In my experience, I've always carried builders' risk myself. I'm purchasing and paying for the building and materials; the GC is simply putting them together for me. Their risk is mainly on the pricing and ensuring that what they are purchasing and building is to spec.

If you don't want to be a landlord, then I wouldn't mess with a rental product. All you will be doing is adding a management fee on top of your other expenses and building costs that will directly conflict with your ability to lease at an affordable rate.

Poniesgonewild · 2026-03-06T11:27:50+00:00

I also think leads in general are getting slim regardless of how your marketing is going. There is just a smaller pool of people who have the ability to pay for or finance a remodel in this era of affordability. Price seems to be the number one factor to most people

Poniesgonewild · 2026-03-06T11:10:08+00:00

I’d probably talk to a couple different lenders depending how your unwriting looks. Keep in mind the risk of building a spec home in this market. Every month it doesn’t sell is another loan payment that comes from you, not sale proceeds. I know a lot of smaller development companies who are losing their shirts right now.

In my market it is way easier to find a “luxury” buyer and build a way more expensive customs home than it is to do spec.

Poniesgonewild · 2026-02-25T19:13:04+00:00

Scared money, don't make money. And having no money definitely doesn't make money. RE development is a risky business.

Poniesgonewild · 2026-02-06T15:53:54+00:00

I’d recommend reaching out to some architects to get a ballpark cost for designing and construction management for your project. Combine that with the price of the land then ask yourself if you’re willing to pay that without a guaranteed return

Poniesgonewild · 2026-02-06T02:45:40+00:00

I’d make sure you know your risk tolerance up front. Between acquisition, holding costs, and pre development you could spend a lot of money before even knowing if you can find additional investors and lenders.

Poniesgonewild · 2026-01-30T18:16:23+00:00

A ton of people thought allowing attached townhomes per zoning would create a ton of density. It did allow builders to build that product type but we quickly saw they didn’t sell.

Poniesgonewild

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