Official Gramps' Memorial Eternal OT Thread

#72,026
#72,026
LouderVol said:
imo a lot of it has to do with the product that has been built.

no one is building real starter homes that are affordable. the ones that exist are being torn down and replaced with a cookie cutter house that is 3500sqft and costs 600k+.

one of the things pushing people away from building starter homes is the upfront costs and challenges are insane, and with a smaller/cheaper house you aren't going to get the same return on the investment for more work. not to get political in here but the small home market is being squeezed from every angle.
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3500 sq. foot home here is 7figures.

I have a Florida Cracker Box (1200sqft 3/2) that would sell for 450. I have another home that I live in that is a 2600 4/3 with a pool that is in the 750 range. I get harassed daily by callers trying to buy the smaller home for cash offers. The big investment conglomerates are buying everything in sight. It is hard to find anything to rent in this county for under 1500 regardless of size. The small house would rent for 2500 with zero issues. It is not a number that the typical single parent can afford.
 
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#72,027
#72,027
ClearwaterVol said:
3500 sq. foot home here is 7figures.

I have a Florida Cracker Box (1200sqft 3/2) that would sell for 450. I have another home that I live in that is a 2600 4/3 with a pool that is in the 750 range. I get harassed daily by callers trying to buy the smaller home for cash offers. The big investment conglomerates are buying everything in sight. It is hard to find anything to rent in this county for under 1500 regardless of size. The small house would rent for 2500 with zero issues. It is not a number that the typical single parent can afford.
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As a single, licensed architect with 11+ years of experience, I would struggle with that cost.

the value of a particular home varies greatly based on location. I have a pretty typical house here in Atlanta. I paid 320k for it. about a mile and a half away on the good side of the interstate you can find pretty much the exact same house and lot for twice that.

going back to the first apartment I lived in here in Atlanta 11 years ago the price has tripled.
 
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#72,028
#72,028
LouderVol said:
As a single, licensed architect with 11+ years of experience, I would struggle with that cost.

the value of a particular home varies greatly based on location. I have a pretty typical house here in Atlanta. I paid 320k for it. about a mile and a half away on the good side of the interstate you can find pretty much the exact same house and lot for twice that.

going back to the first apartment I lived in here in Atlanta 11 years ago the price has tripled.
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Kudos to you, man. Another problem I have is whether or not I want to stay in Knox. My LLC is planning on opening a second place out in West Knox, and once I get that going and hire a GM to run both spots, I might dip out of Tennessee again.
 
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#72,031
#72,031
Several times recently i start banging out a post for the homies...get a paragraph or 2 hammered out with my trusty 2 thumbs...get a text message, phone call etc mid post....and when i come back to the screen here my post is there for a second. Then it disappears. Permanently. Have yet to have anything to say important enough to type twice. Hold it down fellas.
 
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#72,032
#72,032
LouderVol said:
As a single, licensed architect with 11+ years of experience, I would struggle with that cost.

the value of a particular home varies greatly based on location. I have a pretty typical house here in Atlanta. I paid 320k for it. about a mile and a half away on the good side of the interstate you can find pretty much the exact same house and lot for twice that.

going back to the first apartment I lived in here in Atlanta 11 years ago the price has tripled.
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I have a good friend who is head of mortgages for Synovius bank here in Atlanta. He says Atlanta is screwed for at least a decade. That's how far behind we are on new builds. Lots of blame to spread. Tons of companies lost their ass in 08, tons of companies won't be overextended again, and localities not being friendly to new builds.
 
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#72,034
#72,034
volfanhill said:
I have a good friend who his head of mortgages for Synovius bank here in Atlanta. He says Atlanta is screwed for at least a decade. That's how far behind we are on new builds. Lots of blame to spread. Tons of companies lost their ass in 08, tons of companies won't be overextended again, and localities not being friendly to new builds.
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Charlotte is same. Wifes a realtor. No inventory...WAAAAY overpriced. Nightmare. Thats with 29,000 new apartments to be completed next couple years...most in the nation over even Austin TX from the article i read. Traffic here is headed towards ATL traffic too. Yaaaaay..
 
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#72,036
#72,036
marcusluvsvols said:
Several times recently i start banging out a post for the homies...get a paragraph or 2 hammered out with my trusty 2 thumbs...get a text message, phone call etc mid post....and when i come back to the screen here my post is there for a second. Then it disappears. Permanently. Have yet to have anything to say important enough to type twice. Hold it down fellas.
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before you leave VN try copying the message in VN. when you come back you should be able to paste it back in.

I do that a lot if I am having to go back to other pages or other threads to make sure I am quoting the right thing or tagging the right person. I would imagine it works if you leave the app/website on your phone too.
 
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#72,037
#72,037
volfanhill said:
I have a good friend who is head of mortgages for Synovius bank here in Atlanta. He says Atlanta is screwed for at least a decade. That's how far behind we are on new builds. Lots of blame to spread. Tons of companies lost their ass in 08, tons of companies won't be overextended again, and localities not being friendly to new builds.
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imo this is one of the worst parts.

every location says they want improvements, but they don't want the changes that come with the improvements,

the process is so complicated and involved now its hard for any developer to try new things. Rent-to-own set ups, buyer financing through the developer, or owner-coops. even the tiny home movement faces a ton of problems even though the ROI on those can be insane.
 
#72,039
#72,039
volfanhill said:
I have a good friend who is head of mortgages for Synovius bank here in Atlanta. He says Atlanta is screwed for at least a decade. That's how far behind we are on new builds. Lots of blame to spread. Tons of companies lost their ass in 08, tons of companies won't be overextended again, and localities not being friendly to new builds.
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And a lot of us sold out to corporations that are trying to squash competition…..at least that happened up here
 
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#72,040
#72,040
LouderVol said:
imo this is one of the worst parts.

every location says they want improvements, but they don't want the changes that come with the improvements,

the process is so complicated and involved now its hard for any developer to try new things. Rent-to-own set ups, buyer financing through the developer, or owner-coops. even the tiny home movement faces a ton of problems even though the ROI on those can be insane.
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Supply chain has been a bitch too.
I had a window issue on the last addition I did. I’m just working me and my sons know. I’d imagine supply chain management is a full time job for medium to large companies now.
 
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#72,041
#72,041
Orangeslice13 said:
Supply chain has been a bitch too.
I had a window issue on the last addition I did. I’m just working me and my sons know. I’d imagine supply chain management is a full time job for medium to large companies now.
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oh yeah. We are typically now trying to release our electrical drawings early. It can take 2 years to get transformers in still. typical construction timeline is 18 months. so contractor has to buy the transformer, sit and do nothing for 6 months, then start up construction. it used to be we would review things like windows a couple months into the construction process, now we have to review that before they even begin underground work. the first month of construction is hell for us in the office, and its got to be worse on the contractor.

it makes financing complicated. typically construction loans start when the contractor starts spending money. but with no construction going on for 6 months, that's a lot of time to be accruing interest with no movement in the project. so either the contractor buys the transformer themselves and will wait until construction to charge the owner; the owner has to eat the construction loan, or the owner has to get separate financing just for the transformer; which complicates the terms of their larger main construction loan.
 
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#72,044
#72,044
LouderVol said:
oh yeah. We are typically now trying to release our electrical drawings early. It can take 2 years to get transformers in still. typical construction timeline is 18 months. so contractor has to buy the transformer, sit and do nothing for 6 months, then start up construction. it used to be we would review things like windows a couple months into the construction process, now we have to review that before they even begin underground work. the first month of construction is hell for us in the office, and its got to be worse on the contractor.

it makes financing complicated. typically construction loans start when the contractor starts spending money. but with no construction going on for 6 months, that's a lot of time to be accruing interest with no movement in the project. so either the contractor buys the transformer themselves and will wait until construction to charge the owner; the owner has to eat the construction loan, or the owner has to get separate financing just for the transformer; which complicates the terms of their larger main construction loan.
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It’s a crazy way to do business
 
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#72,045
#72,045
Orangeslice13 said:
It’s a crazy way to do business
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its real ugly now if the construction gets halted. There is so much money sunk into construction that it doesn't reflect anywhere close to the progress of the construction.

the early parts of construction have always been the most expensive parts, as you have to order materials you are going to use right then, but also any long lead items. now most things are long lead items. A client may have to spend 50% of their entire construction financing before they are even 10% out of the ground. If it goes on pause, they are eating that 40%.

that level of risk, and with the reduced ROI, its just not as good of an idea to invest in building right now. we are seeing ROIs of about 3 to 4% now. used to be double that easy, and with pretty much none of the risk of having to eat that 40%. must better to take a 5% ROI on some of the financial investments currently going on.
 
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