As always, great content Ron! This definitely covered the different nuances in the entire project and somebody starting new in the space would benefit from watching out for these blind spots. Two ways in which my projects differ significantly are (a) phasing out the development and leasing into 2-3 phases - this helps with financing as well as leasing (b) we almost entirely ignore leasing brokers and instead rely on in-house social media marketing to lease - our tenants are regular small-business owners living within 5 miles of the development and are easily targeted on social media. Lastly, the equity returns are good but definitely not 10X on a project.
Yes, phased development costs more per building, but comes with less risk on lease up and financing. Do you pour slabs at all? Or completely from scratch?
How are you getting financing for ground up development I heard from someone who built a flex space they bought the land and then went to a bank to get a loan worth 2-3x of what the land appraises for and then phase out the project.
I’m just a regular guy in the health industry. I’m considering buying 4 acres in Waxahachie an up-and-coming area. Do you think that’s a good idea by and hold? It is commercial.
I think that’s a great market. What do population numbers look like? When buying 1-2 deals, the location of the property and price paid matter more than the city. 👍
Hello, Great information. I own 40 acres of land on major corridor freeway in an area of heavy trucking business, w/ 14 acres zoned commercial. Im ready to get started with industrial outside storage and flex space buildings. How do I connect with you and the right people . Bob
I have been working on a project in Panama City FL. I have the entitlements from the county; mostly. The seem to ask for more every time I turn around. I am thinking I should I get a partner to help me cross the finish line? It is six 16,000 sq/ft flex warehouse space. And what does that look like?
@@RonaldRohdeLaw I have yet to choose a contractor or financing. Frankly I am running out of money. I hate to go into holding pattern. I am concerned my engineering will expire and will have to do it again. I would like to partner with someone who has done this before. A builder or a contractor type person.
@@RonaldRohdeLaw No loan on the property. I did not even think about that. I was just assuming I had to have all the entitlements in place. That is something I will follow up up. Thanks
Drive! Look for buildings that are off market. Otherwise, loopnet, brokers-(costar), crexi look for "for lease" listings and see if they will sell@@AnilKumar-gz6yk
Hello Ronald, i'm new to Flex Space business model and been looking to gain knowledge and some type of training. Hamza investments offers a course for 5 K. Thoughts?
Thanks! Interesting market, as a borough it’s pretty small. Some big manufacturing but your best bet is probably contractor garage. The vendors who serve the residential population.
