TOP STUDENT OF THE MONTH, EARNS $2,750,000 IN 'SWEAT EQUITY' AFTER TAKING THE REDI COURSE
TOP STUDENT OF THE MONTH
Tim W., a recent graduate of the REDI Program, has turned his ‘sweat equity’ into 21 units and 2 historical bungalows in San Diego, CA – earning a 22% ownership equity interest, the equivalent of $2,750,000 after taking the REDI Course.
Real Estate Development is one of the most creative and entrepreneurial fields. Having learned the REDI Method putting together real estate development Joint Ventures, we asked Tim W. a few questions about his apartment project.
redi: tim, why do you love being a developer?
tim w: creativity! although i am a civil engineer, i am really an artist. i love looking at raw land and dreaming up the highest and best use for a specific property in a specific community. my belief is that in order to develop in san diego, you have to work closely with the community to deliver projects that are in line with the city and local community goals.
redi: how many units are there in your development?
tim w: 21 new units and 2 historical bungalows.
redi: how many investors joined you?
tim w: 4 investors. we raised $3,000,000.
redi: how did you determine pricing or rental rates?
tim w: we performed a market analysis, and updated the analysis quarterly throughout our entitlement process so we could ensure the project costs and projected rents were in line with our development goals.
redi: how were you able to find the site?
tim w: once we determined the neighborhood that was best for our development goals, we worked with our network of real estate brokers to find both on-market and off-market land opportunities. the property we chose was located perfectly in central san diego with walkability to major parks, restaurants, and bars.
redi: what were the initial obstacles and challenges?
tim w: the site was located on a canyon and involved some detailed civil engineering up front in order to properly plan the design of the buildings. there was also a historical element and as a result our project site includes two 1920's cottages that we designated historical as part of our project and entitlements.
redi: how did you overcome the obstacles?
tim w: we looked for creative solutions from the start, and we approached the neighborhood- planning group up front and asked them what they thought the neighborhood would like to see on the property. by approaching the neighborhood planning group early in the process we got high remarks from city council at the final approval of the project and we eliminated opposition to the project by working with our neighbors in a friendly way.
redi: what is the irr?
tim w: 22% irr on this 23-unit apartment project in san diego.
redi: what projects are you looking at now for possible development?
tim w: 50 to 100 unit multifamily projects in central san diego, plus retail to office building conversion projects in downtown san diego.
redi: why do you feel these new projects would be great investment for joint investors with you?
tim w: our long term ownership platform is ideal for investors that aren't looking for a quick flip, but rather a 5 or 10-year investment in a high profile asset in central san diego. our returns speak for themselves and every investor we've worked with is asking us to do more projects!
"Richard Michael Abraham’s knowledge and mentoring I would argue guarantees success."
If you are an investor interested in the potential of Tim's future projects, contact The REDI Foundation and we will provide your contact info to Tim W.