BOOTSTRAPS REAL ESTATE DEVELOPMENT
STUDENT CREATES INVESTOR JOINT VENTURE AND EARNS $4,000,000
TOP STUDENT OF THE MONTH
Brian S., a recent graduate of the REDI Program turned a 20-acre vacant parcel of land into a commercial development, earning millions of dollars - all after taking the REDI Course.
Real Estate Development is truly a creative and entrepreneurial business. Having learned the REDI Method putting together real estate development Joint Ventures, we asked Brian S. a few questions about how he did it. Notice how he started with no money, used the methods taught in the Course, used his creativity and newly learned presentation skills, and changed the entire path of his life.
I have had the opportunity to talk with bright individuals who have had ideas for real estate developments but haven’t progressed passed the “idea” stage. They haven’t progressed past this day dreaming stage because they lack The REDI Foundation’s comprehensive and proven method. The REDI foundation’s comprehensive mentoring Course provides the expertise needed to be able to proceed and take action. The mentoring I’m receiving in the course is equivalent to having an expert developer as a business partner. This Course has been vital for me to move from the day dreaming stage to actual execution.
real estate development projects
REDI: Brian, as an executive of a large corporation why did you pursue a career change and take the 6-Month REDI Real Estate Development Mentoring – Certification Course?
Brian S: I wanted to pursue my entrepreneurial aspirations. I've always been interested in real estate development. When I came across the REDI Method program I knew it would be the perfect fit for me to obtain real estate development education and break into my first development.
REDI: What are the three the most important things you learned from your developer mentor, Richard Michael Abraham?
Brian S: I learned the entire development business from Richard Michael Abraham. The three things…
• Prepare a thorough Market/Feasibility/Joint Venture Study. You need to know the market/financial feasibility, and how to present it in a straightforward manner. You need to be the subject matter expert on your development.
• Confidence. When dealing with potential Joint Venture Investor partners, Richie (as his students call him) taught me that you must not be humble. You need to present a feasible project backed up by your hard work and research and you need to be confident in how you propose it. A humble developer with no money is going to have a hard time obtaining investment. You need to be confident in your dealings, and then once you've had success you can be humble. But until you have that track record of success you need to exude confidence.
• Market/Feasibility. Look for demand use. Perform the market feasibility and determine whether you’ve proven demand. Know what the highest value project would be. Don’t sit in an office and brainstorm.
REDI: How did you identify this 20-acre parcel of land and determine it was a sound development opportunity?
Brian S: My Market/Feasibility Study and use of the Value Generator Method helped me uncover the development opportunity.
REDI: How did you acquire this 20-acre parcel of land and what was the acquisition cost?
Brian S: Using my Market/Feasibility/Joint Venture Study, I was able to get a joint investor to put up the $450,000 acquisition cost.
REDI: How many lots did you subdivide the land into and what was your development strategy in terms of assembling the best retail buyers?
Brian S: The development consists of 8 lots, all zoned commercial. We currently are pursuing fast food, travel stops, coffee shops, and automotive. We are also developing a hotel on lot 8.
REDI: Who bought the initial first parcel of land? And how many acres did they purchase?
Brian S: The first sale was to Transwest. (Chrysler/Dodge/Jeep/Ram). Transwest bought 5.4 acres of land. The auto dealer is currently under construction – you can see their construction almost complete in the photo.
REDI: You have now sold a second 5-acre parcel of land for a hotel development of which you own a 50% interest in the development. Can you tell us more about the 2nd project?
Brian S: I am contributing two lots, which total 3.24 acres to a joint venture development. My ownership in the hotel development is 50%. We are developing a 69-room Microtel by Wyndham.
REDI: Is it true that you sold the first 5-acre parcel of land for roughly the same price you paid for the entire 20-acres?
Brian S: Yes.
REDI: As a result of this transaction and the sale of these two sites, what is your current profit?
Brian S: My development company is contractually due a significant development fee for developing the Wyndham hotel. Plus my 50% stake is currently valued at $2,800,000 based on the hotel appraisal of $5,600,000 upon opening. We are borrowing $3,079,000.00 to construct the hotel, so upon opening my net equity in the hotel will be $1,260,500.00
REDI: you still have about 10 acres left. How much additional profit will you make when you sell your remaining sites?
Brian S: More than $1,287,795.00. I project $4,000,000 in profit.
other projects brian s. is developing
REDI: How many other real estate development projects are you involved?
Brian S: I'm currently working on two other similar projects in Colorado.
REDI: What was it like being mentored individually, one-on-one by Richard Michael Abraham?
Brian S: Richie provides individual mentoring every step of the way that is essential in putting together an in demand, doable and feasible development. When you're just starting in this business you may have good ideas, but being able to prove the feasibility of that idea and format a proposal in a manner that is credible and will obtain JV investor partners takes training. Richie is very responsive and helped me out every step of the way so that when I was ready to launch my own development company I was able to do so with confidence and with the proper tools and skills to have success. Through the mentoring process we worked on my own real life real estate development project instead of some theoretical project. Hands on learning was much more valuable than classroom theory. There is nothing in the world like the REDI Method Course.