As many of you know, I am a seasoned flex space real estate developer. I began my journey with flex 8 years ago, and I saw the gold mine that this asset class truly is. If you have been looking to invest in real estate, or develop your own project, you’re in the right place to learn more about flex and all of its benefits. Here are the 6 stages to developing flex space real estate:
Stage 1: Land Due Diligence
What we do in land due diligence is make sure that the land is right based on criteria that I have come up with based on my eight years of experience and learning from a lot of mistakes.
We need to make sure that the land we’re looking at is absolutely right for flex space. This means it needs to be within a certain distance of the city, which means it also needs to be at a certain price point. The land needs to look a certain way and feel a certain way in order for flex space to really thrive on this property.
Stage 2: Land Acquisition
Now, the first stage takes about 60 days to complete. The land acquisition stage takes an additional 30 days. At this stage of developing flex space real estate, you are getting ready to acquire the land. What this means is that you need to make sure title work is good, make sure the seller is who they say they are, and that the land you are buying is essentially not a piece of trash.
So during the due diligence period we make sure to get a survey and really understand what is being sold to us. It takes 30 days to acquire the land, making the total timeline for flex space development so far 90 days.
Stage 3: Permitting and Zoning
The next stage of flex space development is permitting and zoning. This stage usually takes 4-9 months depending on where you are in relation to the city. This stage is there to make sure that you can actually build office warehouses in the area, and that you can zone the land for what you want it to be zoned as.
The reason why the range for permitting and zoning is so large is because the closer you are to the city, the longer this process takes. That is why I always recommend finding land about 40 minutes away from the city, so you can have an easier time getting permits from your county.
Stage 4: Financing And Funding
After permitting and zoning is complete, we then move on to the financing and funding the flex space development. This means that we now need to talk to the bank. Let them know that you are ready to go, you’re permitted and you now need a loan. At this point you need to know exactly what things are going to cost you, and what your construction budget is.
Step 5: Construction
Now that you know what construction is going to cost you, you go ahead and start creating your flex space development. It is really important that you make sure that you are mobilizing your entire teams and making sure that the project is moving on. I have strategies in place for the construction process to ensure maximum efficiency. This process generally takes nine months to a year, and then your construction is complete.
Stage 6: Leasing and Stabilization
Now that we have our flex space development ready to go we are ready to then go into the leasing and stabilization phase. This stage takes us around 30-60 days, to make sure our flex space real estate is leased out and stabilized. Once this is done, we can either refinance the project if we would like to hold onto the cash flow, or we can sell it and make 6-7 figures.
I have gone through flex space development myself, and was able to create a product that was efficient, profitable, and scalable. I am now dedicated to spreading my knowledge and walking people through these steps with weekly coaching sessions. If you would like to learn more, check out Flex Space Untapped.
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