It’s not time to fight the zoning but to jump on it.

By
Real Estate Broker/Owner with Foster Group Realtors WA DOL# 26639

 

Wake up! Time to do something fun!  Rather than look at another beat up, badly managed, or empty building let’s do something new. That triplex lot, that sad empty commercial corner, that undeveloped acreage with great zoning.  Local Counties and Cities are even supporting building more homes and developing some of those empty or rundown commercial lots.  They are dusting off long term plans for development in underused commercial locations and re-development of target neighborhoods.  It’s not time to fight the zoning but to jump on it.

 

We were starved for anything new for years.  Who could fight the tide against new construction?  Well that’s over. Low rates, great construction costs, are in our favor. Banks have portfolio money and are looking to lend.  Vacancy rates are near all-time lows.

 

If you are tired of hunting through slim inventory of multifamily and high priced commercial now is the time to invest in new construction.  The downside of patiently waiting for the project to complete is offset by the instant equity gains and great cash flow prospects at the end.

 

If you think it is too hard or if want to be a passive investor and don’t need the headaches, I have good news.  Builders and banks and land owners are all looking for just that bit of cash to make it happen.  You are the delta! 

 

An example or 2 might help:

 

Large: 80 unit waterfront condo site, land owner will partner and subjugate to bank. Bank will lend for construction using both the land and cash as security. Builder ready to go. Sales and demand for units is solid. Pricing at completion will be modest. A $10M project can be done with as little as $2M cash.  Returns look awesome in a 2 year time frame.  The IRR is astounding.  Units will be affordable too. This is not another over-priced project.  Sales projections are around $250.00 per foot.

 

Small: Our client had $900,000 to invest.  We are building him 9 units with a 7 CAP return and 20% equity bump on completion.  Start to finish 8 months.  He will be netting $63,000 a year (vacancy rate 1.5%) and own brand new multifamily property appraised at over $1.2M in 8 months.

Not ready for sdomething new? There are still few great existing deals and opportunities in Whatcom.  We just sold 7 very nice condos in Cordata for average $135K each.

 

Let’s have some fun in Whatcom County. Give me a call or send me an email for more ideas. Let’s brainstorm over coffee.

 

Best

 

Doug Foster doug@dhfoster.com 360-920-1114

 

Foster Group Realtors, Keller Williams

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
18,799

Foster Group Realtors - HomeSmart One Realty

Ask me a question
*
*
*
*