Steps Needed To Increase Value On Golf Course/apartment Community
I am purchasing a Golf Course and Apartment community I would like to figure out a way to increase my profits and property values after the purchase has been made. Is there someone I should work with to analyze the current costs and expenses and can provide me with ways to increase value and profits along with reducing expenses and will provide suggestions to increase value? Note the Apartment Community is profitable and has been recently renovated and is 95% occupied.
give us some of the numbers you are wanting to improve on.
Have the rents been increased to market rates after the remodel?
Is the golf course private or public?
Is there lessons available to public or members?
Is there a pro shop?
Are there any concessions available for extra cash flow?
Is there room for expansion?
Good Luck,
Robert
[addsig]
I will review the info and provide the information you requested, But I have a question is there someone I should have on my team that can evaluate my project after I have signed the PA to lock it down and then provide me with information to improve not only this project but all properties I purchase? I need a project analyst that will identify areas I as the owner can improve add, change that will provide increases in value and profits. Any suggestions?
duplicate a terifically successful, full service, restaurant and stick it in your complex.
You may want to check out a 2 day conference being held by the Urban Land Institute in March. It is titled "Developing Resort, Second Home, and Golf Course Communities"
There are sessions on Market Analysis for golf courses, Value Adding, etc....
Go to www.uli.org//conferences
Thanks so much for all of the GREAT Information, I have implemented a Great program with your suggestions and will be working with the NGOA. Also look for my invitation to the club when the dust has settled: what better way to thank you all than with a round on me or at least at a great promotional discount.
Keep the ideas/suggestions coming!
Thanks for response, the problem with that is the reason he is trying to sell so badly ( obviously he didnt tell us this but we found out on our own through due diligence) is he started work on the house without permits, and now the towns really pissed at him and the inspectors wont come to the house.( quite frankly i think hes a fool and wouldnt want to even be near a partnership with him).
Is the seller able to carry a second for the down payment amount? Some lenders are willing to accept this-
Chris
Yes the seller will carry a second, but almost every lender ive spoken to dont want to get involved without our money involved too. They want to see 150k not 50k involved.
Sounds like your remaining options are to find another partner with funds, therby diluting your share or finding a hard money lender. Hard money is expensive (4 points, 15% locally), but if your numbers are real it should work.
Bill
Yes it does look like this one would have to go hard money (expensive as has already been mentioned or look for an additional partner to help with the downpayment.
OK, let me get this straight...you got an apartment thats selling for $75k, thats gonna be worth $275k once your paint the walls and install stainless steel appliances...is that correct? You also think that the city will just let you change the title deed and lots to sell them as individual units. There are a lot of things missing here and you also dont know how difficult an apartment to condo conversion can be. Maybe you should try and flip a stright rehab/sell 100k property first....doesnt look like you are ready for this to me...but its your money...not mine.
Hello all, thanks for all the input it has been helpful . ( except for the negative, oneway thinker rglover) But to update you all i found a lender who is financing the entire purchase, plus the 300k rehab loan with none of our own money involved. We close in two weeks and the first phase of construction will start shortly thereafter.
Quote:
On 2007-02-01 15:27, rglover548 wrote:
OK, let me get this straight...you got an apartment thats selling for $75k, thats gonna be worth $275k once your paint the walls and install stainless steel appliances...is that correct? You also think that the city will just let you change the title deed and lots to sell them as individual units. There are a lot of things missing here and you also dont know how difficult an apartment to condo conversion can be. Maybe you should try and flip a stright rehab/sell 100k property first....doesnt look like you are ready for this to me...but its your money...not mine.
Im not just going to just paint the walls and install new appliances. ( although that will be done). All the units are now going to have all there own heating units and seperate utilities. Plus the floor plans are all being changed and opened to be more profitable. The purchase price is approx 450k for building rehab 300k for a total of 750k . The building is 15 min outside of NYC by train with the new light rail system within 3 walking blocks. This is a very desirable area . The comps for two bedroom condos in the area with similar square footage is 220k low end 260 high end. The final value of the building will be approx 1.5 million. Our lender agreed to finance up to 52% of the estimated final value and the appraisals are all finished. As far as changing the deed and the city , thats what lawyers are for. We have one who is handling the conversion and obviously all the approvals for the conversion had to be there for us to even consider this project. Also if you read my original post one of the partners is a gc and has been building, flipping and renovating homes for over 10 years.
Please for further posts, constructive criticism or useful information only, If i wanted be told i couldnt do something or wanted negativite responses i would visit my local bank.
Well Scott. I do admit, I was a little doubtful on how you were getting your 1.5 mil. Actually, it still doesnt come close to that to me. But it does look like a lot of money can be made, and your restructuring logic and partners are sound. So you are correct, not to listen to my opinion. Good luck.
Lots of people will work on finding you a property and only get paid if you close. They are called Realtors.