[Jason G]

Hello everyone,

I need guidance in regards to investing in commercial real-estate. I found this new town that is being constructed (thirty minutes away from me) in central Florida. I pass through this town once a month and I have watched it grow over the last two years. So far they have created many homes centralized on golf course, a school and one restaurant.

The nearest convenient store, grocery store, or recreational fun other than golf is twenty minutes north. The road that run’s passed “Harmony Fl” is 192, if you’re traveling south from Orlando, you would want to take this road as a shortcut to 95. The city is in the process of creating four lanes because of the traffic increase.

Here is what I was considering and I’m not sure how to assess the situation to determine if it would be viable or for that matter getting “started”. Would it be a smart move to purchase a few acres across from this town that is being built and build a Storage facility, Coffee shop?

I would like to put some form of business, so I can keep my current job and still maintain the property and business.

Thanks,

Jason

Also, here is the town http://www.harmonyfl.com/

[akula]

great question

the default answer is "no, it would not, because such a transaction would yield inferior, risk adjusted, expected returns"

in other words, if something goes wrong with this deal - you're toast, therefore it's a bad investment for you personally. might be ok for some other guy, but not for you.

there is a three fold way to asses these investments:

1) Does this asset type match your risk profile and expectations?
(These are questions about borrowing capacity, experience, personal financial objectives etc..)

2) If not, how can the transaction be structured to correct the situation?
(These are questions about using unlisted syndicates or listed property trusts, different kinds of lease arrangements, underwriting contracts etc..)

3) How should the funds be allocated?
(These are questions about picking what properties to develop and the details of the project plan)

Overall, I'd really VERY STRONGLY suggest that you go make a consultation with your local property syndicate about these matters. Go find guys who are doing this stuff and ask them where you can learn their trade. There will be workshops.

Undeveloped property is an active investment. It will not match your objective of "keeping my current job", unless you structure the transaction to get the same exposure, but without the active management.

Originally Posted by Jason G

Here is what I was considering and I’m not sure how to assess the situation to determine if it would be viable or for that matter getting “started”. Would it be a smart move to purchase a few acres across from this town that is being built and build a Storage facility, Coffee shop?