Subdividing A Building

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I was thinking about buying a furniture store on a busy road and subdividing into 5 smaller retail stores. Who has experience with doing this kind of thing. What other things do I need to consider when it comes to putting up four walls?

Comments(16)

  • ddstew20th November, 2010

    More than 4 walls...consider the utilities, each needs seperate electricity, gas, water, cooling, heating, entrances, bathrooms, noise barriers, fire codes, security between units, zoning change, parking, occupancy, etc...

  • real_estate_now13th February, 2011

    I would start with local city zoning , explain what you want to do and see what they say. The utilities do not have to be separate - they can be paid equally or you can pay them and charge more rent if you plan on keeping it. If you plan on selling it, then an association would be needed.

  • savana17th February, 2011

    Quote:
    On 2011-02-13 15:08, real_estate_now wrote:
    I would start with local city zoning , explain what you want to do and see what they say. The utilities do not have to be separate - they can be paid equally or you can pay them and charge more rent if you plan on keeping it. If you plan on selling it, then an association would be needed.


    This is what exactly I was thinking and it will be worth knowing more details.

  • jimandlacy30th October, 2010

    Drivel!

  • ITBInvestor30th October, 2010

    jimandlacy, I believe Mr. Drivel may be Mr. Washington (aka dominicter) in http://www.thecreativeinvestor.com/ViewTopic66987-50.html
    and leenalidiyer in Real Estate And Construction Business At Washington DC

    One post wonders.

  • savana17th February, 2011

    You will get everything on Google. Whatever you search it gives you the exact result and it will be worth getting all the real estate related information here.

  • cjmazur23rd April, 2010

    most of these are state specific questions. The best bet would be to talk to the planning or building department in the city/county where you want to build..

    If you have the investors already, then you may have run afoul of securities law by unwitingly have "solicited" the investors.

    They pretty much canned answer is an LLC per group of houses/investors, but you might want to look at a c-corp and the perk under the recover act for Qualified Small Business Stock.

  • joel25th April, 2010

    I agree. An LLC is the way to go. If it is cheap enough, you can set one up per property.

  • ashwin28th April, 2010

    I think if you form a land development company , you can hire a general contractor, to build homes on your land, ( really buy home from GC) then sell to the buyer( consumer.) For money you can borrow from investors, use it to buy the home from the contractor , then sell home to buyer who will get financed from the bank to repay back, from which you will keep your profit and repay investor along with interest or part of profit. This way you will not require GC liscence,as many states require extensive past expereince and passing of tests to grant license[ Edited by ashwin on Date 04/28/2010 ]

  • savana17th February, 2011

    Quote:
    On 2010-04-25 22:46, joel wrote:
    I agree. An LLC is the way to go. If it is cheap enough, you can set one up per property.


    I would like to know more about LLC as, I dont know much about this and it is worth knowing spme more updates that are necessary for us to know.

  • joel12th August, 2010

    Try using the Comparable tool here. It is based on live data that is within our database that we compile on a month to month basis. (Over 6 million active on any month).

    While it does not provide sales data, or current rent data, it does provide a good estimate at the neighborhood/zipcode level.

    http://www.propbot.com/Comparable-index.html[ Edited by joel on Date 08/12/2010 ]

  • jomelrose14th August, 2010

    Try www.eppraisal.com

  • rememory14th August, 2010

    Thank you for the replies. These sites do help.

  • champakshah10th October, 2010

    First you have to define your objectives and narrow down what you want to accomplish --for SFR --those three sites mentioend above - are good --Zillow is usually higher priced-- each city has special info but you have to spend lot of money --or time - also HUD and Sensus Bureau will have info--but you are wasting too much time and energy --if you are looking all over eastern sea board--because prices in Richmond , Virginia and Charlotte NC will be lot different --for same sq feet house -- if you are invetsor- look near you first --know the neighborhood- and then decide -last six - twelve months prices have dropepd 30 % --so can not compare on old data --

    I am in Atlanta, Geogria --here I can buy bank REO for $30,000 --to $60,000 and upto $300,000 ---
    Once you narrow down and want to buy specific house-then realtor should help with comps and past listing history
    [ Edited by champakshah on Date 10/10/2010 ]

  • real_estate_now14th February, 2011

    The problem with eppraisal, zillow, trulia is they are all based on median price. While their price range (low to high) has some value, I would be very careful not to make decisions based on the median value, which is truly random and jumps around from month to month. I would take the lowest of all the 3 values, assume it need everything inside, do an aerial survey (google earth or bing) and do MLS comps (realtor.com or your favorite real estate site) for Sold or under contract properties (avoid for sale property prices). After all this is done and you can get it for less than the lowest of all these values, then only hire someone to drive by and do a quick inspection or do it yourself. You want to make the house is still there and not demolished for example. Only then start calculating repairs to see what you can offer. Otherwise, on to the next one.

  • savana17th February, 2011

    I have to look for such sites and will see how it will be helpful for us. I heard about Zillow and the way they do market analysis.

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