Have you ever wanted to own your own building? The process can be very intimidating, because it requires a whole lot of skills and experience that most people rarely use. You are good at running your business and making it profitable. If you hire us, we will provide you with the expertise you need to get your building built and purchased, while you focus on doing what you do best: running your business. Let us handle the myriad details of your building project for you. We will be able to save you from many “rookie mistakes” that are easily avoided if we are brought into the project at the earliest possible moment.
But my contractor/real estate agent/architect says he or she can handle all of this for me. Do I really need a separate firm to do construction management and development?
What are the advantages to owning my own building?
What kinds of services do you provide?
When is the best time to hire a developer for my project?
Should I build my own building, or just buy an already existing building for my business?
Should I have a building all to myself, or find partners/investors?
Is owning real estate a good investment?
When building your own building, first and foremost you are doing this because it will improve your business. We have seen businesses improve their sales by double digits because of greater visibility, a more appealing building exterior and interior, and a more convenient location. These are the main reasons for owning owner-occupied real estate. The needs and goals of the business drive everything else.
If you are interested in owning real estate as an investment, that can also be a very wise move financially and professionally, but the criteria and process are quite different from owner-occupied real estate. We have a great deal of experience with helping investors purchase and sale real estate, so we are happy to help with that, but for our purposes here, you should be aware that this is a very different animal.
However, as a building owner, you will enjoy many of the same advantages that any owner of real estate has. While no one can predict the future and individual results vary greatly, historically real estate has held its value better than other assets in a downturn, provided a good hedge against inflation, and with an amortizing loan, is eventually paid off. While past performance is no predictor of future value, it is usually a good idea to place at least some of your net worth in real property. Real estate is an asset that you want to hold for the long term, and this is doubly true for owner-occupied real estate. When you are ready to retire, you can either sell the property or put it out for lease and earn income even when you’re not working in your business. We can help you design a building that has the best chances of having a good resale value. There are also a number of tax advantages you might be able to take advantage of. While we are not tax advisors, we can work with yours or help you hire one who can make sure you maximize your tax advantages. It is very important that this be done up front, even before land acquisition, because correcting this later on often results in a taxable event itself. The type of entity which holds the property and how it is structured can make a huge difference in the amount of taxes you pay.
How much will it cost me to hire you to develop my property?
If you use our brokerage company to purchase your property, there is no up front fee. Construction management can usually be removed from the general conditions portion of the contractor’s contract and added to ours, since we will be performing those services for you instead of them. This portion of our fee adds nothing to the cost. The rest of our developer fee can be added to the construction loan and paid out with construction draws from the lender, usually at little to no out-of-pocket cost to you.
Our fee is very reasonable, less than what you pay in real estate commissions or your contractor on a percentage basis. Because we are able to structure the best deal for you with the best financing options and the least possible out-of-pocket expenses, and because of our experience with value engineering construction projects and hiring the best service providers, we will provide you with value and savings well in excess of what we cost.