I need a step by step developer guide:
Situation is this
I live in NYC, I am going to look at building sales in the less than 20 Million price point.
I want to convert these buildings from the most likely deplorable condition they are in and turn them into mid-priced condominiums in the $1 to 5 Million range.
Either it is a gut renovation and adding additional floors on top of the existing structure. Or demolish and building new construction.
I need a step by step guide as to how I would accomplish this from acquisition to completion
Including using expediters, architects, contractors, project managers etc.
I want a framework for what is typical if I act as developer and I am raising equity from several HNW individuals who are active in real estate as operators themselves or just investors.
Act as developer or perform development consulting charging developer fee / acquisition fee / management fee
As GP I want a typical payout structure i.e waterfall model
List of vendors I will need to employ and at what stages before and after we purchase the property, like zoning analysis, market studies/feasibility studies, architects, engineers, contractors, project managers, etc.
I need a guide on achieving the following:
1. Hire and coordinate professionals performing due diligence studies.
2. Make recommendations of all professionals to be hired.
3. Arrange for interviews with all professionals.
4. Negotiate contracts with all professionals.
5. Coordinate vacating and demolition of existing buildings.
6. Pro forma initial development and operating budgets.
7. Coordinate professionals during pre-development, and development.
8. Assist in obtaining 421a tax certificates, negotiate acquisition of certificates.
9. Negotiate and assist in structuring deals with Lenders.
10. Coordinate with your accounting department/accountant throughout project.
11. Conduct feasibility study showing competitions choice for unit sizes, unit finishes, and unit pricing.
a. Establish project potential and assist owner in the development of the project plan.
b. Prepare pro forma initial development and operating budgets Work with Owner as needed and as requested to develop permanent operating budgets. – this could be done by PMT firm
c. Identify and recommend necessary vendors and professionals for the project including but not limited to architects, engineers, expeditors, general contractors, attorneys and insurance brokers.
d. Assist in negotiating contracts with all vendors and professionals as needed and requested by Owner.
4. Consultant shall provide advice to Owner regarding the rendering of the following services in connection with the development portion of the project as needed and requested by Owner:
a. Review demolition plan.
b. Attend weekly and or bi-weekly development meetings as required by Ownership and advise Owner’s professionals during weekly meetings.
c. Monitor approval and permit process.
d. Consult as requested regarding budget planning, loan management and requisition draws.
e. Advise on building services and tenant requirements.
f. Act as interface between tenants, and design team and Owner as requested.
If helpful I can provide the following examples:
Project Overview/Investment Memo, operating agreements, a subscription agreement, developer fee agreement, purchase term sheet, brokerage exclusive right to sell agreement, Response to Appraisal letter to the bank challenging the appraisal, JV Proposal Agreement,