RG 144 – Ground Up Construction in LA – LIVE Episode with Jason Muller
- Jason is a trained architect
- Jason works for Beach City Capital
Nuts and Bolts
This interview with Jason Muller took place at the Intelligent Investor Real Estate Conference in Marina Del Rey.
Jason trained as an architect and did land entitlements before he went to graduate school to study development and business. He then went to work for an institutional development company where he bought apartment buildings for development which meant he had to do party wall agreements. While he was meeting with these owners he also offered to buy the units from them and some people said yes, he then offered seller carry back and re-investing the equity. Jason is now full time with Beach City Capital.
Jason’s process takes approximately 9 months, he doesn’t just present the deal to the seller but instead chips away slowly, he advises that you have to be accommodating as all property is personal. Jason recently completed a project on Redondo beach which was a lease agreement put into place until he got entitlements and then he could close on the lot. This took 8 months but was very low risk for the developer.
The most important thing in a project like this is the team, Jason advises that the contract is the key piece when working with a general contractor as it’s the letter of the law. Make sure you call all the references of a GC and keep your GC schedule updated regularly. Host the architect meetings each week, and never cut on this – it’s laborious and dull but very necessary. Make sure the architect is fully engaged and pay the premium, don’t think you can pay a little less and save some money because it’s not worth it; pay more and get more. Make sure all of your specs have been specced out and priced within 90 days because your GC will be putting down payments and procuring sub contracts.