Good news/Bad news.
First bad news: This is the official update to the thread titled “Zero down deals don’t work!”.
A couple months ago, we pulled the plug on that deal due to worsening market conditions and the lack of progress on a proposed road paving project. We took our earnest deposit back on the last day of our contract.
Now the good news: We put our new project under contract. We’ve had a harrowing few weeks but the deal is done.
Here’s the new digs.
blue
Our Skytrak is sold. Frank sold it for 47k cash.
Replies
Should be exciting. Do keep us up on how it goes. I will be really interested in the progress as well as how the financials turn out. I always thought this would be a great idea for an apartment building but never found one in the right area. Good luck! DanT
Thanks Dan. I will fill you in with the details including the plans and financials too if you'd like to hear them.
Here's pictures of the left portion of the building (picture #2) and the right portion of the building (pic #6).
If someone could stich them together in a photo program, I'll be quite appreciative.
Anyways, the building is 40,000 sf comprised of the original elementary school, the high school (pic #2) and the auditorium (pic 6). The auditorium is 6100 feet total including about 1200 feet in a basement under the stage. The remaining 33000 sq ft is divided equally in 3 levels. The lowest level is sunk about 4' below grade.
This would make a great apartment building but this area is saturated with cheap housing because there are still enough units leftover (converted barracks) when the closed the Wurtsmith Air Base many years ago.
blueOur Skytrak is sold. Frank sold it for 47k cash.
they didn't line up perfectly, but here's my attempt."Listen, strange women lying in ponds distributing swords is no basis for a system of government."Jon
Yes that's it Hector! Thanks!!!!
My fantastic buyer's agent and property manager, Darla, will be sending me some panoramic shots of the school asap. She would have taken them today but it's snowing up there.
Thanks again for your effort!
blueOur Skytrak is sold. Frank sold it for 47k cash.
You're welcome. Glad I could help."Listen, strange women lying in ponds distributing swords is no basis for a system of government."Jon
Blue,
Looks like yer gonna have to put the tool belt back on....
from the photo even my untrained eye can tell yer gonna need some SERIOUS siesmic retro-fits...
buy some stock in Simpson....
GLUCK!!!
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from the photo even my untrained eye can tell yer gonna need some SERIOUS siesmic retro-fits...
You must be looking at a wrong photo Mr T. There won't be a single seismic retro fit in this building. It's all concrete. The only framing is in the roof of the original elementary school. I can't wait to get up in the "attic" and take some photos.
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
this don't look like its sinking on one end???
View Image
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this don't look like its sinking on one end???
Lol! Now I know what your talking about.
That picture was spliced together with a photo program. The right end is showing some perspective while the othersare shot straight on.
I'll be getting some true panoramic views, possible later today. Right now, Darla, our property manager is swamped with a laundry list of things that need to be done.
blue
Our Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
I think it's a great idea what you're doing.Would all condos have the same floor plan?Are you going to leave the gym for the residents to have as an exercise facility?Are you going to finish out one condo and use it like a model home and then start taking orders?If so, make the model very close to the entry (so the visitors don't have to walk through a mess to get to the model)Here where I'm at someone did something like what you're doing and they finished the condos like high end lofts.Good luck!^^^^^^
S N A F U (Situation Normal: All Fouled Up)
Would all condos have the same floor plan?
No. We'll build one condo unit as a model, then let the buyers use up as much square footage as they want to build their own custom condo. We are thinking that the average size will be about 1500 sq ft.
The gym is still up in the air and we are racking our brains. I'd love to keep it as an amenity for the residents but the value as a theatre is just too tempting. We're thinking that we'd like to convert it to a plush concert hall/ theatre to serve NE Michigan. There isn't anything like that anywhere on the East coast.
so the visitors don't have to walk through a mess to get to the model
I can assure you that there will be NO MESS. The halls will be clean and the construction clutter will be inside behind closed doors.
We are aiming at high end loft buyers. That seems to be a niche market that is still going strong here in Michigan.
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
I could be wrong...
It might be frost heave in the middle....
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Hey Blue - since you got the gym, we need to get together a BT round ball league.
"Let's go to Memphis in the meantime, baby" - John Hiatt.
http://grantlogan.net/
Hey Blue - since you got the gym, we need to get together a BT round ball league.
I'm getting myself into shape and putting together a team and I'll be glad to welcome all competition. I've dropped 34 pounds over the last few months and I'm getting my wind back.
Bring it on!
blue
Our Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
Blue,
Oscoda hey. I was pretty close with my Alpena guess, in the other thread.
It sounds like that area might be pretty flush with reasonable housing. Will you shoot for higher end? Seems like it might be good for the "snowbird market".
Maybe should have kept that Skytrac. It would be nice for moving materials up to those upper floors. I guess, you're maybe figuring on just GC'ing, and subbing the work. Atleast the general economy in Michigan, might make it easier to lock in some decent subs.
Good luck!
Brudoggie
You were very close with your guess Brudoggie! I was afraid you'd swoop in and steal my deal!
This market is indeed a snowbird market. It's close proximity to Lake Huron and the Au Sable River make it a wonderful summer destination.
We sold the Skytrac because we are now 80% GCing and 20% subcontracting. We started shifting away from subbing last spring and our marketing efforts are now taking hold. The machine sat idle for most of the summer and we just didn't want to keep paying the note on it. We will be able to rent machines for less.
And you are right, the general economy will make it easier to find competent help.
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
Blue,
No worries about me stealing your deal. That's alot bigger animal than I want to tangle with right now. I'm into simplifying my life at the moment.
As was said, there's money available out there. We have a local developer doing revitilization in a very small town nearby. They've bought 4 historic properties, for pennies on the dollar. So far they've redone 3. Really nice stuff. Way beyond what a sane person would put into the places, atleast in this market. They must be getting some return, in the form of tax breaks or grant money.
I'm just getting started, on a renovation of a 100 yr + old historic home. The new owner saved it from the wrecking ball, by only a two week margin.Previous owner was going to demo, and put up a small strip mall. Would have been an absolute shame. The new owner is GC'ing themselves, looking to create office space on the main level, and a possible residence on the upper two. This is a long term customer of mine, with great vision, and dedication to doing the place justice.
I have alot of respect for those of you, who will step out and try to make a neglected property into a jewel of growth, for a depressed area. I'd like to join the charge, but don't have the resources at this time.
It's the innovation, and vision of folks like you, Blue, that will put Michigan back on the map !
I have a client, who does exactly the type of developement you are looking at, only in the Atlantic states. I can put you in touch, if you are interested.
Brudoggie
I have alot of respect for those of you, who will step out and try to make a neglected property into a jewel of growth, for a depressed area. I'd like to join the charge, but don't have the resources at this time.
I don't have a lot of resources either at this time. I'm coming off my third year in a row of losses. I tied this deal up with zero money down and 72 hours to raise 6k if the owner accepted the terms. I did it with twenty dollars in my wallet and I would gladly write a 6k check off a credit card. I could easily split off the gym and sell it for 180k cash in less than the 6 months that I have to do my due diligence. We already know we are closing this deal. Were just now trying to figure out the particulars.
Zero down deals do work. It doesn't mean the sellers aren't getting any money, it just means that the buyers are using OP (other people's) money.
Were going to the bank early next week to see what they will need to fund this operation.
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
have a client, who does exactly the type of developement you are looking at, only in the Atlantic states. I can put you in touch, if you are interested.
I am interested. If you could, will you please email me?
Previous owner was going to demo, and put up a small strip mall
I'm all for that too, but this particular property doesn't lend itself to an idea like that.
blue
Our Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
What's the plan?
Girls school to train apprentices for Bosshog?
In Calif you could split it up into storage units and make money.
Joe H
What's the plan?
We are currently still in the dreaming phase but the general consensus from the team, the architect, property manager/purchasing agent/ and developers (Gandalf and I), is to put approximately 5 residential condo units on each level. We will create a mixed bag of 3, 2 and 1 bedroom units. We are also looking to re-develop the gymnasium and stage area into a theater.
This project will be the catalyst for a major revitalization in this depressed town(s), in essence, a renaissance. I'm locking up additional key buildings and development sites as soon as I get back there later today and early next week.
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
goodlooking... appears well maintained building.... better than anything i ever started with...
the market here is pretty flush with units for sale...
just a couple notes... if it's over 40years old.. and it appears to be... then you might want to check... depending on the amount you spend to rehab/convert it... you could be looking at a 10% tax credit for all money spent on improvments (this is want many developers go to the table with for "the money we're putting into the deal" these tax credits are just about like 97cents on the dollar cash... if you can figure out a way to make this property "historic" and placed on the national historic register... (not a real hard thing to do) then you can get 20% tax credit... IF and it very well may be in a federal enterprise zone (allot more of these exist than people know) then you have a few added benifits... well more than a few... do your research this information should be easy to get... but usually those that should know these things... DON'T...
good luck
p
Pony, thanks for those tax credit tidbits! They won't help me because you have to owe some taxes to use tax credits LOL! Darla, is researching state and federal monies and I'll pass on your tips when I see here later today. I'm meeting an asbestos abatement contractor in her office today at 10am.
The building was maintained quite well until the last few years. It has been idle for about ten years but they kept the heat on. The school sold it about a year and half ago and the new owner didn't heat it. The lack of heat lead to some freezing on the main roof drain and now there is water coming in at that point doing some damage to the wood floor in one room. I'll be looking to stop that leak on Monday!
Not a bad pickup for $ 4 per sq foot! I'm going to be using this new sq footage number as comps to buy more buildings in the surrounding downtown area.
I'll post some more pics as soon as I get a better camera-mine bit the dust.
blue
Our Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
you don't have to use the tax credits yourself... there is a secondary market for them and they are 100% transferable... you can sell me your 100k tax credit for 97k and i've saved 3k in less than 30 min... most banks know about & want fed tax credits...
like i said these are just about like cash and not something to overlook
p
You have to read the "Hanly-Wood" give -away rag "remodeler or Remodeling". This months issue have a interesting artical on the change over of a HUGE insane asylum into condos.
Thanks Bob. I saw that article and that's what really got me going on this deal. The pictures that Traverse hospital are amazing. I posted a link to a website about that project earlier in this thread.
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
That's a fantastic tip Pony!!!
We definitely will be able to get some federal and state grants and loans and probably credits too! This deal will fly without any of that stuff but if what you are saying works out, the credits alone will be our share of the seed money to get favorable bank financing.
We're meeting the banker this week.
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
Wow! Nice. We live across the highway from a converted school (not apartments). You could always do like the McMenamins and turn it into a bar/hotel:
http://www.mcmenamins.com/index.php?loc=57&category=Location%20Homepage
Thanks for that site Darrel. We appreciate all ideas and I've already passed that link onto the team.
Here's another site that shows something very similar to what we will be doing. http://www.thevillagetc.com/. Click on Photo gallery and select finished spaces.
Heres a shot of a hallway in the Photo Gallery/"finished spaces" section of that site: http://www.thevillagetc.com/finished_spaces_gallery/images/mam_office_full.jpg
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
Good luck Blue.
You picked the right time of year to rehab the inside of a school.
I am putting 40 sq of fiber cement on right now and it's COLD.
Are you GCing the school project? Or doing alot of it your self?
Are you GCing the school project? Or doing alot of it your self?
I'm going to GC the entire project. I've officially layed down the tools but if there's something in there that interests me, I'll hire myself to do it. I do need exercise and some of the work will be good exercise. Or, I might just walk down to MY GYMNASIUM and shoot some hoops.
Heres a shot of the gym.
Notice the antique scoreboard up there? It will make a great artifact somewhere if we have to sacrifice this gym to build a theater.
blue
Our Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
Did you get a woodshop or metal shop in the deal?
Joe H
Did you get a woodshop or metal shop in the deal?
No, but we did get two really big boilers! I'll get pictures of them next week. There is a massive air moving gizmo too. It's huge. I don't know what to call it.
The janitors room was the most empty room in the lower level.
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
When can I start?
When can I start
I will be seriously solicited the talent here at Taunton U. As soon as I know what I need, I'll be posting for help in the help wanted section.
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
Going to have a Gym Sale there Blue?
Looks like a bunch of stuff there in the photo... :)
Gym sale nothing-
That's the site for the next BT Michyfest.
Since it's so close to Canada, Dino gets the first invitation. Dress is Formal, not casual.
Don K.
EJG Homes Renovations - New Construction - Rentals
Gym sale nothing-
That's the site for the next BT Michyfest.
It would make an ideal site for a fest. Bring your blowup matresses and be prepared for a weeklong blowout. I better get the bathrooms working...
I have been warning the locals that all their pricing and workmanship will be shopped all over the world. They don't belive me, but I intend to seek out the finest craftmanship that resides here at Taunton U.
blue
Our Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!
The lofts they did here were very open & modern floor plan.The high ceilings were a big plus.They had exposed heating and a/c ductwork it added a lot of charm.I think the builder included large flat screen TV's with the condos.They had fancy common areas for exercise and socializing and these added a lot to the luxury feel of the place.What would you thing about naming the building "Old School Luxury Condominiums"Just kidding.
^^^^^^
S N A F U (Situation Normal: All Fouled Up)
Update.
The seller has identified and removed all the items that he wants from the school. We now have an inventory list of whats left in there. We're going to be double checking it in the next few days.
The inventory list says there are 1200 desks of varying sizes ( k -12). Some are plastic but most are wood and metal. We are looking to give them away. If you know of someone that needs these, speak now...we have an aggressive deadline to clean this building out.
There are also some other various items which I can't remember right now. Darla, the property manager/buying agent will be selling some stuff on ebay. A lot of the stuff (books, teaching aids, scoreboards, pretzel warmers, etc) is selling right now. We are not going to get rich but we hope to cover our cleanup costs.
There are also a slew of old Mac computers. Dave looked over the stuff over. He tells me that the processing speed of the old units make them useful only as routers for networks. I like my small wireless router ($59) so I'm not interested in these either. There are supposedly 30 good computer systems as stated on the inventory sheet but we have no way of knowing where they are.
We have lots of keyboards, cables and monitors...
I'll keep y'all posted.
If anyone wants stuff send me an email at accjimallen @ comcast.net. I'm still receiving emails there for the next few days/weeks. I also can be reached at PO Box 164, Oscoda, MI 48750. If all that fails, ring my cell at 586 292 7974
All ideas are welcomed.
Jim
aka Blue
I almost forgot...
Last Friday, I arranged a meeting with a roofing contractor to give me a price on reroofing the building. I met Jerry at 8 am sharp. We proceeded to the roof and Jerry took out his wheel and started measuring. After 30', he stopped and appeared to be distressed. I checked with him and he indicated that he was dizzy.
Long story short, he was having a heart attack. Luckily this is a flat roof. After dialing 911, I did my best to keep him comfortable. At one point, he appeared to stop breathing and was turning red. Of course, I was freaked out. Just as I was checking for a pulse and prepareing to start CPR, he coughed and started breathing normally again on my own.
EMS took a solid 15 minutes to get there because they first stopped at the new high school, which is also on River Rd. I could hear them tell the 911 operator that they were in the weight room and there wasn't any access to the roof. I excitedly had to explain that they were in the wrong high school, that there wasn't any truck onsite!
Eventually, Jerry woke up and started talking to me. He apologized for runing my morning. He apologized for causing such an embarassing situation. I kept explaining that I was thrilled that he was okay and talking to me. He worried that they wouldn't be able to get him off that roof (he was 72 years old and weighed 240#). The scuttle wasn't real big.
EMS finally arrived. They had to call a neighboring fire dept to bring a larger ladder truck. They stabilized Jerry and strapped him to a board and slid him down the ladder on the ladder truck.
We were trying to keep the lid on this deal until we had a chance to develop some numbers and possibly tie up some additional properties. Instead of keeping a lid on it, we had about 100 people lined up watching the proceedings. The local paper had their reporter there and today the paper came out. Our story occupied the entire front page of Section C in full color. I was told that color in the paper is extremely rare and a full page color spread was unheard of!
So much for keeping a lid on it.
Jerry called me today and thanked me for my efforts. His wife called me on Saturday and thanked me for saving his life. I didn't actually do anything but it was a good thing that I didn't busy myself doing other things.
I guess our luck continues...
blue
Quite a story Blue. One I hope to never experience.
I had a young guy have a diabetic seizure on a job once, I had no idea he was diabetic. Freaked me out. Doesn't even compare to your ordeal 30' in the air.
Going to have a Gym Sale there Blue?
Looks like a bunch of stuff there in the photo... :)
That gym is about 6100 sq ft with only aisles to walk in. The stage is full of computers. There is about 10,000 more sq ft of space on the lower lever with desks too. Our first order of business is to get that stuff out of there and we are racking our brains trying to figure out what to do with it. If you have any ideas, let me know.
I'm going to inventory the entire building next week and I'll post the results and hope that TU will have the answers.
blueOur Skytrak is sold. Frank sold it for 47k cash. I'm now officially retired as a carpenter. I've offered to fill in for Frank in emergencies, but when he calls, I'll probably say no LOL!