Looking for Vacant Lot and Advise for JV

[RebeccaBryan]

Hello,

Last evening I met with one of my tenants that has the potential of being a great JV partner. He owns a construction company and moved here from Ontario last May with some of his employees. He rents one of my houses for himself and his employees to live in. He plans to move his wife and kids here in December. His wife is skeptical so I gave him a copy of "Alberta Market Economic Update" to show her. He was impressed.

Anyway, for the past few months I`ve been throwing the idea out to him of doing a JV with me. Last night he and I did some brainstorming and I found out that he is interested but he would like to build a house new and then sell it for the profit. I hadn`t considered this before as I`ve been buying existing properties and renting them out. That`s what I know, so that`s what I do.

This has forced me to "think outside the box" as I am extremely confident that we could team up and be successful.

He`s extremely busy with his business as he frames houses and has no time to arrange for this build to happen. (that`s where I come in) We discussed that if I find the vacant lot and arrange financing and all the other details, he will organize the build and the contractors which I could help with as well. I`m thinking he could organize the onsite part and I the offsite.

Ideally I would like to find a vacant lot. I`m thinking I could probably find a lot that has a condemned house on it to buy, however, that would be costly to demolish it. Is it possible to find a lot in a newer area or are they all owned by builders?

I am also thinking that whatever spot I find will dictate the build that is most sensible.

Does anyone have thoughts on financing? I`m thinking I should do a business plan if I decide to do a multi-unit property and keep it. Any thoughts on this?

I can see that I will have many questions as I pursue this and I am looking forward to any advise that any of you may have.

Happy Investing,

Rebecca Bryan

 

[JefferyJohn]

Hi,

Sounds like it could lead to great things!

To answer one of your questions, it is possible to find vacant lots in a new area . . . I know of a brand new subdivision at Beaumont, upscale country residential area called Copper Creek with lots for sale.

If you end up looking further down this road please let me know and I can provide you with all the information you would need to build there.

Enjoy the journey,
Jeff

 

[DonCampbell]

Hi Rebecca,

There are many experienced speculative-builders in the city who, during this plateau, have been stuck with un-sold inventory and prices have been adjusting accordingly.

What you may consider investigating is buuilding the house not on spec, but as a custom order. Finding the buyer before you build. (lots of people coming from out of town etc.). OR you may wish to investigate the finances of building a four-plex that is for rental.

Good to hear that the builder has some of his trades, however you`ll want to ensure he has all or most of his trades lined up with reliable people because in this hot market, it is still taking many many weeks to even get quotes on certain trades.

How about him turin ghis team into a professional and reliable renovations team. There are MANY investors looking for that on an ongoing basis.

 

[RebeccaBryan]

Thanks Don,

I`m meeting with him tomorrow so I`ll suggest these ideas to him. I just know I have to be comfortable with what ever I decide.
I`m comfortable with keeping it fairly boring, just like you suggest, and repeating what I`ve been doing over and over. The only reason I`ve considered building new is because my tenant/JV partner suggested it and seems so enthusiastic.

 

[Gene]

Hi Rebecca Bryan,

Just a note to say you are not alone, i am a builder in Fort mcMurray and Edmonton area, I have been doing Jount Ventures to construct single famity homes for the last two years. My Company is Loyal Properties Inc. Web site loyalproperties.com. Take a look it may help.