Transcription
complete 12. Is it 12 or 20? It's 12 additional homes to close out phase one. And we're actually about to get ready to start the road work. So, we about to repave our roads and do all of that other infrastructure. Um, now that we're getting out of phase one and into phase two, but this is what it looks like to build a community from the ground up. You get to be able to choose the street signs. You get to be able to do the HOAs, create the HOAs, create the architectural design that you want in your community. Right now, me and Derek have decided that we're not selling any of our property to outside um investors. We're just going to keep every single thing to oursel right now.
Yeah. Which you can do that whenever you develop or you if you want to get a large cash infusion, you can sell a bulk of lots to a builder. You just want to make sure that when you sell into a builder that they're not going to undercut your pricing. And the way you do that is by putting it in a contract, right? Saying this is the price per square foot we're building in this community. These are the amenities that we expect in the property. These are the um these are the regulations in regards to the home. So like if they got to have a certain amount of siding, brick, you know, the garage doors, you can't build carports back here. You got to have a garage door, right? Um privacy fence other than the first homes which are part of a common area. So that area is maintained by the HOA, right? So long as they follow those restrictions and do those things, then you know you can bulk sell property to investors. We just choose not to do that. We choose to go on ahead and build this out our way. This is a project that we started with our opportunity zone fund whenever um back in 2019.
2019. Yeah. And so um right after um the opportunity zone initiative begins. So um this is a great way to create group economics and create partnerships and be able to acquire large properties. Any questions about developments that me and Derek could answer.
So all of these properties you built the ones that are already we built everything you said.
You built everything and they are all for sale.
No, they already sold.
They're already sold. The four you're walking into are not on the market yet. They're under construction. And the reason why we don't put them on on the market until we're about 80% complete is because we want to make sure that all of our costs make sense for the sales price that we're asking for.
Did you have to pave these roads?
Yes. So, these roads were already um paved, but they're not paved according to code. So, because we have a relationship with the city, they allowed us to start the infrastructure and come back later and do the roads because the roads are a very costly expense.
Yeah. And right now, all the roads are private. When we finish this road work, uh, the roads will become public and we will no longer be responsible for maintenance. So,
this is, y'all remember what I said? What this looked like when we purchased it?
What it look like?
Yeah.
Yes. Yes. Yeah. Yeah. So, um, this is about 15 acres. Yeah. And so what we did guys was whenever we acquired this property, me, Pastor Bobby, Tony, Steph, Derek, a few other of us, we walked all four corners of this property. We staked it. We declared it for the Lord. We had communion on this property. Um, we poured salt on this property to cleanse it. So we walked all up and down these pathways to be able to cleanse this this filth back here. So we did a lot of work back here to, you know, make sure that this is a kingdom property.
Yes. So, um, like I was saying earlier, I have, um, a property that I'm about to have, uh, properties built on, and the I started it started the project before I got into this class and found out more information, but the first property that we are going to have built, I have a contractor. I know to shadow the person. What other advice would you have for me to do or to kind of question him about as I'm shadowing him?
Have you seen his work?
Yes.
Okay. And so you walked through his projects already?
Yes.
Okay. So that right there is enough.
Okay.
Because you have actually walked through his properties and know that he can build what he said he's going to build.
Well, I want to shadow him in order because the next two properties I would like to try to do it myself.
Yeah. So when you shadow him, that means you don't make no noise. You just learn, right? So when you're shadowing him because he's already doing it and you've verified and witnessed and you know you've seen his receipts, all you doing is paying attention and taking notes and then when you have questions you can ask him, right? Um, but in regards to looking to see what he shouldn't be doing and things like that. I mean who's handling the draws? Are you or him?
He is. Well, that's what I assume to just stand back. But I'm like, okay, am I supposed to be like, "Okay, did you do you know?"
No. So, you know, we have a draw schedule um in our um portal system where you can um put in every, you know, Excel block a percentage of the completion of the project, I would never allow a outside contractor that's not my partner to handle my draws, right?
So, what happens is, you know, if a house is 100%, right? And your first draw may be 15%. And in that 15% he's had to pull permits. He's had to pull um, you know, um, he's probably done the foundation. He's probably done the blacken. You know, the framing. All of that stuff is probably going to be in your first draw. Right. Right.
Maybe your second draw. Depends on how you break it down. But I will break it down according to 100% schedule. And if that first draw is 15%, then you know he got 85% left to draw on. So, when that house is at 50% completion, you should be able to walk around and see that you got 50% left of work.
Right? Okay.
Okay.
How how many properties will be on the um 15 acres?
Yeah, that's a great question. So, um, I believe it's 68 um duplexes.
64 duplexes.
Yeah, 64 duplexes,
21 single family uh
and a 48 unit apartment complex,
which will be
right behind you right here.
Yes. And then the very front partial is commercial. So we would, you know, look at bringing in a commercial partner, which we have someone in the inner circle, me and her just got to get together and meet. Yeah.
Um, could you give us some more advice about how to leverage like opportunity zones if there are a lot in our neighborhoods because you mentioned the opportunity zone, but I wouldn't even like know how to, you know, leverage it.
Yeah. So the first thing is you got to reach out to your local government to see where the properties are are that are actually in the opportunity zone. That's the first thing. The second thing is that there's no um initiative right now, right? Scott Turner would have to bring that back. So that's what investors are waiting to see because the first opportunity zone I believe expired in 2024, 10 years. Yeah. 2024 because it started in 2014. So um we're waiting to see.
Yeah. And I and I'll add on top of it. So there there's two two things you have to do. You first have to apply to be a qualified opportunity zone fund. So, you just find an attorney to do that. The second thing is you have annual filings that have to be done. Uh, and you just have to find a CPA that's familiar with it. At at this point, like at this stage, a lot a lot more CPAs will be familiar than when it the program first started. So, but it's a very simple form. Like, I could fill it out. I don't, but um, you know,
we we let our attorneys do that.
Yeah, for sure.
Thank you.
You're welcome.
So, our HOA, we wrote them and told them we wanted speed bumps in our neighborhood. They put them down and then the city was like, "Y'all gotta get them out of here." Um, I guess they didn't do something. Is that something y'all will be able to do here? And then will you all have an HOA for the community?
We have a HOA now already in effect. Um, so this the thing, you can't just go put speed bumps down unless your roads remain private. Because our roads are private, we can do whatever we want. But the moment we have to turn it over to the city, we're not just going with the city law. We're going with the state law. And so from there, that's a huge difference. Your speed bumps may not be up to the city standard or the state standard, you know. So, that's probably why they're saying, "Hey, you got to get this off of here." And a good HOA wouldn't have done that without the proper permit.
So,
yeah, if you want speed bumps and it's a public street, you need to go to your city council.
Yeah. And on top of that, they probably going to charge y'all more for your HOAs that they didn't lay those speed bumps down.
And yeah, anytime, you know, we I mean, we're like that as well, right? We got expense. Now, we're not charging our residents for the roads and things like that we have to do. But every time somebody break a um street like like that one up there is charged to the community. That's kids coming in the neighborhood throwing shoes and all kind of stuff up there cuz they just they just, you know, malicious. It's a $4,000 fix right there.
You always say start with the end in mind.
Did you know you wanted all of what you told us commercial? Was that part of like when you went to the planning board, did you have all of that already there and they approved all of that? Absolutely. I walked in the mayor's office, put it handwritten on my folder and Joel Rodo looked at me and he could not believe that I was serious about putting every last thing that I told you guys who was putting back here. Um, but again, I wrote the vision out. I made it very plain to see.
And I got with an engineer who approved it and laid it out and then we got approval.
Come on. Hey. Hey. Hey.