Do-It Yourself Urban Development

[Kerry]

I mentioned this in another thread but I thought it could spur its own discussion. I would be interested in participating in a real estate redevelopment group potentially made up of OKCTalk and average people. We already have a lot of people on OKCTalk familiar with construction, architecture, City permitting and planning process, banking, as well as a lot of potential residents.

Would starting a small real-estate development company be of interest to anyone? We could start by building a couple of row houses in the midtown area (maybe even be able to buy land from OCURA). Each person could buy in for as much as they could afford from a few hundred dollars to 10's of thousands, and reap the benefit accordingly. Of course, we would need some heavy hitters to do most of the major lifting but if we kept the projects small we could keep cost down and maybe some people could do the work for free or cheap as part of their contribution.

Profits made from one development could be put back into building the next row house until we complete a block.

[G.Walker]

Sounds like a good idea...

[Kerry]

If we could build a large enough social network to help, each person wouldn't have to give very much money to get started. Imagine if we could get 500 people to join in, or even 5,000.

[Spartan]

You're dreaming very big, Kerry...but there are some interesting people on this site. I'd be curious what they think before I make may judgment.

[G.Walker]

No dream is ever too big, trust me...

[mcca7596]

I would certainly be willing to contribute monetarily what little I can.

[Kerry]

You're dreaming very big, Kerry...but there are some interesting people on this site. I'd be curious what they think before I make may judgment.

It doesn't even have to be big. I would be happy to start with a single 1,500 sq foot row house, sell it, use the proceeds build another one next door, and repeat. If I lived there I would even be willing to swing a hammer, screw in drywall, and paint on the weekends.

[king183]

I think this is a fantastic idea. There are several examples of combining the knowledge of a group like this and starting small has led to big, positive changes.

I'm in if there is sufficient interest. And I hope there will be.

[Kerry]

I think it is a great idea. You might even consider going to Habitat for Humanity and see if we could fund an "urban" project for them. In other words, we would be willing to provide funds if they built it with certain designs and location standards.

Just thinking out loud..

Well, I would actually like to make money for the 'investors' and not give away a $250,000 home. We need to sell them so we can afford to build the next one. I don't want it to be a charity, I want it to be a profitable business that lets the average person have a hand in urbanizing downtown. Even if initial profits are small the business will hopefully grow.

[Spartan]

Maybe it could be something like the Tom's business model... except there wouldn't be another house in Africa.

[betts]

I'd be interested. At what amount I'm not sure, but it's certainly an intriguing idea.

[okclee]

Will our profits be paid out in form of gold or U.S. dollars? j/k

[Kerry]

Will our profits be paid out in form of gold or U.S. dollars? j/k

LOL - they would be paid in Bricktown Bucks and could only be spent in the OKC Urban Core.

[okclee]

Awesome!! Bricktown Bucks!!

You should seriously copyright that idea, "Bricktown Bucks", can't wait!

[CuatrodeMayo]

I can't contribute monetarily, but I can do the architectural design and drafting (that will save at least 7% of the project cost).

[Kerry]

I can't contribute monetarily, but I can do the architectural design and drafting (that will save at least 7% of the project cost).

That would be awesome CuatrodeMayo.

Does anyone have any ideas what the basic steps are that would need to be followed.

I have no idea how the process works. There is obviously more to it than the 5 steps below.

1) acquire land
2) design structure
3) Get building permit
4) Construct home
5) Sell home.

[betts]

I guess you could divide something like this up into "shares". Calculate costs and sell shares based on that. If someone does work, you get bids for that work and they get the number of shares that relates to the cost of the bid. The problem is, how do you deal with cost overruns? What if you can't sell enough shares? Who handles the money until enough is accumulated? What do yo do if one of your sharefholders does substandard work or quits halfway through?

[Kerry]

I guess you could divide something like this up into "shares". Calculate costs and sell shares based on that. If someone does work, you get bids for that work and they get the number of shares that relates to the cost of the bid. The problem is, how do you deal with cost overruns? What if you can't sell enough shares? Who handles the money until enough is accumulated? What do yo do if one of your sharefholders does substandard work or quits halfway through?

Those are all valid points Betts and is why it would require a local person to follow it. Basically what I was thinking is that we would form a corporation and sell shares in the corporation, either through cash payment or in-kind services. Obviously we would want to be fair to everyone. If we get a cost estimate of $300,000 then we don't start until we have $400,000. I am assuming we could get a construction loan so we would only need to come up with a part of that money. I am not expecting shareholders to do the actual work, but if we have a general contractor, drywall people, plumbers, lawyers, etc that would like to be involved to help keep cost down then that would be great. Everything would have to pass inspection anyhow and hopefully if people are part of the company they would take pride in their work.

As far as money goes, the more people we could get involved the less each person would have to contribute and obviously some people would be a in financial position to do a lot more than others. Money would go into a corporate bank account and if things don't work out or we can't get enough people we close shop and distribute the funds back out.

[mcca7596]

If it ends up being successful we should set aside 1 or 2 houses as designated "urban vacation" timeshares for the shareholders.

[Kerry]

If it ends up being successful we should set aside 1 or 2 houses as designated "urban vacation" timeshares for the shareholders.

If it is successful we could all buy our own 'vacation homes'. However, my goal isn't to get rich (but I would take it if offered). To quote Aubrey McClendon, I would be thrilled to break even. I just want to help downtown OKC become a successful and lively urban environment.

[OU Adonis]

I would be interested as an investor and maybe some manual labor.

[USG'60]

I am a "semi-retired" remodeler having specialized in unique interior details. I have been told by "the big boys" that I have 2 strong points beside my artistic sense. One is space planning and the other is finding the BIG problems and turning them into focal points. I would be willing to work with the architect in planning and could, perhaps, be a co-superintendent. It is difficult for me to work full 8 hrs days, especially if working hard. I would be more than reasonable about how compensation worked. Oh, and all of this is contingent on the good wife's appproval. Most of my work over the years was in Midtown, Heritage Hills, Mesta Park, Crown Heights and Edgemere Heights. Don't mean to toot my own horn but just painting an honest picture. I'm really quit humble. And I have more time and skills than money saved. This is the nearest thing to a resume I have ever composed. Pardon it's brevity.

[zrfdude]

Well, I would actually like to make money for the 'investors' and not give away a $250,000 home. We need to sell them so we can afford to build the next one. I don't want it to be a charity, I want it to be a profitable business that lets the average person have a hand in urbanizing downtown. Even if initial profits are small the business will hopefully grow.

Just FYI, Habitat homes aren't given away; homeowners must make a down payment, help build their home, and then make mortgage payments.

[USG'60]

I THINK Kerry is wanting to do something that would appeal to a middle class family. I am a huge fan of HforH and habitually give them goodys and buy from them when apropriate. And I love their mission but I hope this will go beyond their standards.

[Kerry]

I THINK Kerry is wanting to do something that would appeal to a middle class family. I am a huge fan of HforH and habitually give them goodys and buy from them when apropriate. And I love their mission but I hope this will go beyond their standards.

You are right USG60. I want to build something that has a reasonable price and can make a return on the investment, but also be a good value for the person buying the home. We also need to make enough to uild the next home. I would like to build something that I would be willing to live in. I am not looking to compete at the high-end or the low-end; probably higher than the average new home in OKC, but nowhere near what other for-sale downtown housing cost in the past. Obviously land cost is going to be an issue so we might even need to be off the beaten path at first, but maybe over time we can make our own path.