Say "NO" to This Real Estate Deal!

Name: Say "NO" to This Real Estate Deal!
Uploaded: 2021-10-26T21:39:48+00:00
Duration: 53 s
Channel: Tim Hubbard
Description: Tim Hubbard describes evaluating his first real estate development opportunity in Colombia. He is on-site, planning to partner with a friend, and…

26 Oct 2021 · 1 min

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Tim Hubbard describes evaluating his first real estate development opportunity in Colombia. He is on-site, planning to partner with a friend, and considers a prime lot that would support a large project (15+ stories) requiring demolition of existing properties and significant upfront capital. He ultimately identifies risks that turned him off the deal, notably an unfriendly/poorly compatible architect and a purchase price/financial structure that was unattractive.

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I'm down here in Colombia, and I'm really excited about the opportunity to do my first development. And so I've been researching the market. I'm going to be partnering with a good friend of mine that's just finishing his development. So fantastic, fantastic lot for sale in the best part of the whole city. But this was a risky deal. This is to build a big, big development, like, you know, 15 stories plus would be demoing two properties that were already in the area. And there was a lot of upfront money for this. Our bottom price was just too low for them. But there was a couple other things that turned me off to this deal. One was the architect that was working on the plans. He already had the plans together. He just didn't seem like a really easy guy to work with. So that's important to consider, especially if you're looking at doing a longer project.