Maximizing Value: Design and Construction Cost Tips

Summary We sit down with the Dodson Development Group to discuss beer, proforma, construction, creative deal structures, and how to blend a sports card store with a bar & grill. We explore the idea of streaming live card pack openings while customers can enjoy food and drinks. We also touch on the concept of buying into a card pack break, where customers can purchase a specific team and watch the pack opening live. The hosts also discuss the development process and the importance of creativity in making deals work. We highlight the role of underwriting and the significance of relationships with brokers in the commercial real estate industry. Kenny Shultz and Duke Dodson discuss developing and constructing commercial properties in this conversation. We touch on construction costs, cash flows, yield on cost, investor structures, and the challenges of raising equity. We also discuss the importance of communication and collaboration between developers, contractors, and engineers and the need for early involvement and understanding costs in the design process. Takeaways * The concept of merging a sports card and hobby shop with a sports bar allows customers to enjoy food and drinks while watching live card pack openings. * Buying into a card pack break allows customers to purchase a specific team and watch the pack opening live. * Creativity makes real estate development deals work, especially in a challenging market. * Underwriting is essential to the development process, and a deep understanding of financial analysis and math is necessary. * Building relationships with brokers is valuable in finding and securing deals in the commercial real estate industry. Developers must consider construction costs, cash flows, and yield on cost when evaluating a project. * Raising equity can be challenging and requires constant communication with lenders and investors. * Early involvement and collaboration between developers, contractors, and engineers are crucial for successful project execution. * Understanding costs and making informed decisions can help optimize the design and construction process. * Effective communication and a proactive approach can help mitigate challenges and ensure project success. Chapters 00:00 Introduction and Warm-up 00:57 The Concept of Merging a Sports Card Shop with a Sports Bar 02:25 Card Pack Breaks and Live Streaming 08:26 The Importance of Creativity in Real Estate Development 17:11 Overcoming Challenges and Building Relationships 24:03 The Role of Underwriting in the Development Process 28:46 Building Relationships with Brokers in Commercial Real Estate 32:20 Navigating Construction Costs and Cash Flows 37:03 The Art and Science of Raising Equity 44:04 Understanding Costs and Optimizing Design 52:28 Effective Communication and CollaborationSound Bites Quotes "Real estate developers are creative in different ways, but in commercial real estate, anything's negotiable. It's like the Wild West." Keywords sports cards, sports bar, streaming, card pack break, development, underwriting, creativity, commercial real estate, brokers, commercial development, construction costs, cash flows, yield on cost, investor structures, raising equity, communication, collaboration, early involvement, understanding costs Where to find Duke Dodson * website: https://www.dodsondev.com/ * Instagram: https://www.instagram.com/duke_dodson * YouTube: https://www.youtube.com/@dodsonpropertymanagement2081 Where to find PermitZIP * website: https://www.permitzip.com * Instagram: https://www.instagram.com/permitzip * X (Twitter): https://twitter.com/PermitZIP Where to find The Blueprint Tour * YouTube: https://www.youtube.com/@theblueprinttour * TikTok: https://www.tiktok.com/@theblueprinttour * Kenny (Host): https://twitter.com/blueprinttour * Carter (Host): https://twitter.com/bptcarter Get full access to The Engineering Stack at www.thebptour.com/subscribe