Cohen

[Kyle Bryant @TKyle]

Boutique builder needed to help me take this development all the way.

Here's the deal:

• I am looking to sell paper lots for 77 single family homes at $50k/lot. Target product for this development is custom homes $750k - $1.25M. Very strong demand in this area (right off I-65, 40 miles south of Nashville).

• We've got top notch site design and engineering teams at work on this project

• Lot sizes range from .25ac - .75ac

• City water, but County site plan approval (more relaxed); Soil site identified for STEP system; Engineers working on OPC.

• What I get out of this: I'll keep the dirt for 9 townhome lots, a couple duplex lots, and about 40k sq. ft. of retail/commercial

I believe this is an opportunity to create a totally unique and attractive development in Maury County, one of the fastest growing counties in Middle TN.

If you (or someone you know) may be interested in partnering on this deal, DM me.

I'll send you more details and we can chat.

[Cory Sylvester 📦 @StorageDataDev]

Here's how we avoid closing on land without the proper municipal approval to build a storage facility:

As part of our offer we include an entitlement period (post-due diligence, pre-closing period). We get everything we need in order to move to close.

Generally, if entitlements are long & complicated... they are that way for other uses besides self storage.

Long Island & Los Angeles are two examples of areas known for entitlement battles.

Sellers in these areas understand that if they want to sell, they have to give us time to get it properly entitled.

[Cohen @cohenwoster]

@ZeroBasis Civil engineering ftw

[Coby @Cobylefko]

A perfect city corner

[Civil Site Guy @CivilSiteGuy]

"How many lots can I get on this parcel"

Simple and understandable question. But good lord is it loaded.

I never know the number unless I have a landplan on a certified boundary & wetlands. If a parcel ends up a couple feet wider/more narrow, it can be dozens more or less lots

[Artem Tepler | R.E. Developer @ArtemTepler]

Most people don't understand the costs that go into "overhead" and "profit" for a GC. Here is a good summary:

Contractor's Cost Estimation and Pricing

The contractor initially estimates the hard costs, which include money paid out for labor and materials, required to complete the job.
These costs are then marked up to determine the bid price. The markup accounts for overhead and profit.
Overhead and Profit Components

Overhead
This term refers to all the indirect costs of doing business that aren't tied to a specific job. Examples include:Costs for trucks, tools, and equipment.
Office expenses, bookkeeping, and accounting.
Advertising, training, legal, and insurance fees.
Other business-related costs.
If a contractor undercharges and doesn't cover overhead costs, their business may not be sustainable.

Profit:This is the net profit or the amount left for the owner after deducting all hard and soft costs of completing the job.

The company owner's labor cost is treated differently depending on their role:If they work part-time on the job, their labor cost is a hard cost.
If they work in the office and draw a salary, this would be considered overhead.

Calculating Overhead and Profit
Different companies use various methods to calculate overhead and profit. For instance:Some companies categorize labor burden (employee benefits and taxes) as a direct job cost, while others consider it overhead.
Some companies markup materials, labor, and subcontractor costs; others may only markup labor.
Overhead assignment could be based on job duration rather than cost.
Some may use a line-item expense for the contractor's management fee instead of "profit."

Regardless of the method used, it is vital for a company to earn enough to cover all costs, with net profit left to reward the owner and cover future needs.

Typical Overhead and Profit Rates
The "right" amount of overhead and profit varies and tends to be higher for larger companies. Small companies, particularly those where the owner is onsite daily, usually work primarily for wages, with modest additional profit.
According to a national survey by NAHB, the average net profit on land-and-house packages was about 9%. Overhead, marketing, and sales accounted for another 10%.
Custom builders typically work on smaller margins (15% to 18% for overhead and profit on new homes), while remodeling contractors usually charge higher rates.
In difficult times, some contractors may reduce their markup to attract more work with lower prices.

From my experience talking to institutional GCs building MF in TX, market seems to be 5% profit. On our smaller subinstituional jobs we run it at 6% profit.

[The Investments Lawyer (Michael Huseby) @investing_law]

LP issues checklist. 📄

25 questions to ask before investing in an investment fund.

✅1. Fund Term

If the fund is a closed-end fund, how long are LPs locked in? Can the term be extended? Can the LPs terminate the fund early?

✅2. Investment Period

How long is the period in which the fund can make new investments without LP approval?

✅3. Distribution Waterfall

How are profits split between the GP and LPs? Is there a preferred return? Is there a "GP catchup"? Is the waterfall American or European?

✅4. In-Kind Distributions

Can the fund distribute assets other than cash to the LPs?

✅5. GP Clawback

Is there a GP clawback at the end of the fund's life to ensure the GP didn't receive more carried interest than it was ultimately entitled to?

✅6. LP Clawback

Do LPs have to return distributions under certain circumstances? Are there time/amount limits?

✅7. LPAC

Is there a limited partner advisory committee? Can you get a seat on the committee?

✅8. Recycling

Can distributions from LPs be reinvested by the GP? Are there time/amount limits?

✅9. Capital Call Notices

How long do LPs have to fund capital calls once the GP gives notice?

✅10. Management Fee

What is the management fee percentage? What is the denominator of the management fee? Are there reductions to the management fee?

✅11. Other Fees

Consulting fees? Acquisition fees? Property management fees? Development fees? Disposition fees?

✅12. Subsequent Closings

Can the GP keep raising funds after the initial closing? For how long? Do later-close LPs have to pay catch-up interest to be admitted? Can the GP waive the interest requirement?

✅13. Fund Expenses

What expenses are paid by the fund?

✅14. Organizational Expenses

Is there a cap on organizational expenses payable by the fund?

✅15. GP Removal

Can the LPs remove the GP for cause? Can LPs remove the GP for any reason? Does the GP get a haircut on carried interest if removed?

✅16. Key Person Provision

How much time do fund principals have to spend on the fund? What happens if they don't satisfy the time commitment?

✅17. GP Commitment

How much is the GP committing to the fund? Can the commitment be funded via a management fee offset?

✅18. Investment Limitations

Are there limits to what the fund can invest in?

✅19. Leverage

Can the fund use leverage to make investments? Are there limits?

✅20. Co-investments

Can you co-invest alongside the fund? What are the fees/carry on co-investments?

✅21. Successor Funds

When can the GP raise the next fund? How will investment opportunities be allocated between this fund and the next fund?

✅22. Indemnification

Are the GP / fund principals indemnified for wrongdoing? What is the standard of care?

✅23. LP Withdrawal

Can LPs withdraw from the fund?

✅24. Gates/Lockups

If LPs can withdraw, are there any time/amount limits to how much an LP can withdraw?

✅25. Reporting

What reports are given to LPs? Are financials audited? What is the time limit for getting your K-1?

[Rudolph Companies @Rudolph_Cos]

Its tax season. As a GP, we get numerous calls around this time every year relating to LP K1s. 90% of the calls revolve around explanation of what are the important parts to review.

Lets breakdown a K1 in so non-CPA's can understand their tax implications:

1/

[HANS LOREI @hanslorei]

There is no way AI does not significantly impact architecture & design soon

It is absolutely here on the marketing/media side already

[Baird Kleinsmith @bairdk]

I have a lot of free time. Mostly ski, sometimes work.

Made possible by a badass team of 3 in Venezuela & Peru, who will manage 8 properties to🤞generate:

$1,400,000 revenue &
$1,000,000 net operating income this yr

The people, processes, & tools making it happen:⬇️

[Phil @and1largefry]

📍trenches

[Helpful Landlord @heIpfullandlord]

I spoke with a real estate investor recently who told me he'd purchased 8 homes remotely, and they're averaging $500/m net profit.

His numbers: 20% down on a $200k home is $40k to earn $500/m.

To do the same with $SCHD (a popular dividend ETF), you'd need to invest $177k.

[Reed Westwood @reedwestwood]

We the Real Boiz 👨🏽‍🎓 #2020

[Cohen @cohenwoster]

@JeffGuthrie32 Thanks man 😘