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Listen "E15: The Land Development Process from Concept to Property Management with Joe Colosuonno"
Episode Synopsis
In 2009, Joe Colosuonno bought his first property, a garden-style, 60-year-old, 31-unit apartment building located in a rough area. 12 years later, they have doubled the rent and tenancy is great with a turnover rate of less than 20%. The area is now up and coming with an event center and an arena being built currently. They have also entered into managing and owning about 425 units including some commercial properties as well as getting into ground-up construction and development.
In this conversation, Joe offers his experiences with the land development process, return on investment models and some of the property management metrics which you can apply to help you reach your goal and expand your portfolio!
Here are some power takeaways from today’s conversation:
Managing the land and development process
Joe’s overall real estate portfolio
Converting a 12-unit property to a 40-unit apartment property with approvals
Stormwater management and off-site improvements when buying old properties
What the planning looks like after the zoning approval
The similarities and differences between building 3-bedroom and 1-bedroom properties
A look into Joe’s engineering design perspective
Some of the property management metrics they’re tracking
Episode Highlights:
[13:17] Converting a 12-Unit Property to a 40-Unit Property
Joe purchased a property that was sold based on the performance of the front building, which was the asset. It's a 12-unit building with a 40-car parking lot. And so, they bought it with a cap rate that was off the 12 units, without thinking they could get 40 apartments on that 40-car parking lot in the back. With approvals, those apartments will be worth $25,000 a unit, creating $800k to $1 million dollars in value, compared with the $300k if they only had the 12 units.
[15:42] Off-site Improvements and Stormwater Management
Based on Joe's experience, in terms of off-site improvements, like a traffic light at the end of the block, for instance, Joe says that the city can't mandate you to spend money on it.
In terms of stormwater management, it’s going to be different for lot sizes, over and under one acre. Under one acre, you need to just get your municipal approvals and county approval. If you go over an acre, you have to get an NPDES permit. (NPDES stands for National Pollutant Discharge Elimination System). This process takes about nine months where they review the stormwater and make sure there's no off-site discharge. This is why Joe likes building on parking lots, because they are 100% impervious.
[41:55] Metrics a Great Property Manager Should Track
Joe shares these metrics they're tracking:
- A 48-hour turnaround on all work orders
- One week turnover time frame from when they go vacant
- Zero callbacks after moving
- A 5 out of 5 rating
Resources Mentioned:
LinkedIn: https://www.linkedin.com/in/joseph-colasuonno-b761bb4/
In this conversation, Joe offers his experiences with the land development process, return on investment models and some of the property management metrics which you can apply to help you reach your goal and expand your portfolio!
Here are some power takeaways from today’s conversation:
Managing the land and development process
Joe’s overall real estate portfolio
Converting a 12-unit property to a 40-unit apartment property with approvals
Stormwater management and off-site improvements when buying old properties
What the planning looks like after the zoning approval
The similarities and differences between building 3-bedroom and 1-bedroom properties
A look into Joe’s engineering design perspective
Some of the property management metrics they’re tracking
Episode Highlights:
[13:17] Converting a 12-Unit Property to a 40-Unit Property
Joe purchased a property that was sold based on the performance of the front building, which was the asset. It's a 12-unit building with a 40-car parking lot. And so, they bought it with a cap rate that was off the 12 units, without thinking they could get 40 apartments on that 40-car parking lot in the back. With approvals, those apartments will be worth $25,000 a unit, creating $800k to $1 million dollars in value, compared with the $300k if they only had the 12 units.
[15:42] Off-site Improvements and Stormwater Management
Based on Joe's experience, in terms of off-site improvements, like a traffic light at the end of the block, for instance, Joe says that the city can't mandate you to spend money on it.
In terms of stormwater management, it’s going to be different for lot sizes, over and under one acre. Under one acre, you need to just get your municipal approvals and county approval. If you go over an acre, you have to get an NPDES permit. (NPDES stands for National Pollutant Discharge Elimination System). This process takes about nine months where they review the stormwater and make sure there's no off-site discharge. This is why Joe likes building on parking lots, because they are 100% impervious.
[41:55] Metrics a Great Property Manager Should Track
Joe shares these metrics they're tracking:
- A 48-hour turnaround on all work orders
- One week turnover time frame from when they go vacant
- Zero callbacks after moving
- A 5 out of 5 rating
Resources Mentioned:
LinkedIn: https://www.linkedin.com/in/joseph-colasuonno-b761bb4/
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