Makara Builders

[bklyn...@yahoo.com]

Hi, anybody familiar with Makara Builders? On their website they're promoting a "program" where they pay the homeowner for allowing them to build an ADU on the homeowner's property and then rent it.  Would love to hear from someone who has experience with them. 

Thanks!

[Cheryl Cort]

I have not heard of them but this is an idea that is being developed. This Dweller is the leading group I know doing it: https://www.dweller.com/. Dweller is Working in Portland OR. 

I have wondered if more than a handful of homeowners would be willing to give control of their backyard to a third party. This approach- leasing the land for a rental unit - is a solution to the major cost & financing hurdle for homeowners. 

Do others think that homeowners are willing to enter an agreement with a developer/property manager to build and manage an accessory unit in their backyard? Homeowner benefits with lease payments and eventual payoff and assumption of ownership and control of the unit. That might also take 10 years or so. 

On Feb 24, 2021, at 11:15 PM, 'bklyn...@yahoo.com' via DC Accessory Apartments Forum <ad...@googlegroups.com> wrote:

Hi, anybody familiar with Makara Builders? On their website they're promoting a "program" where they pay the homeowner for allowing them to build an ADU on the homeowner's property and then rent it.  Would love to hear from someone who has experience with them. 

Thanks!

--
You received this message because you are subscribed to the Google Groups "DC Accessory Apartments Forum" group.
To unsubscribe from this group and stop receiving emails from it, send an email to adudc+un...@googlegroups.com.
To view this discussion on the web visit https://groups.google.com/d/msgid/adudc/6b3b144f-84cb-43a5-839b-7dbe6d82e85en%40googlegroups.com.

[Ileana Schinder]

Hi Cheryl, group

I've given a lot of thought about leasing a portion of the house for ownership and alteration of a third party. 

I have a lot of questions about the conditions of these type of agreements:

• What is the timeline if the relationship doesn't work? Who has the right to ban access to the other party? (say the relationship sours, can the homeowner ban access to the owner of the house or the renter?
• What type of control the homeowner has over who and how the additional dwelling unit is used? 
• What type of cost the homeowner has to pay if s/he decides to sell the house and move out?
• What type of cost the homeowner has to pay if s/he decides to rent the main house and move out? (this is not allowed under current DC zoning laws)

If you happen to engage in a financial/real estate relationship, please talk with your current mortgage and home insurance provider. It is complicated.

All the best,

ileana, the architect

To view this discussion on the web visit https://groups.google.com/d/msgid/adudc/062067F6-1E1C-461F-8AD6-773FBFF55D3B%40smartergrowth.net.

--

PS: Did you see us featured in The Washington Post?! 

ileana schinder, Architect

AIA, LEED AP BD+C

i...@ileanaschinder.com
o: 202-381-7463 / c: 202-431-6760

http://www.ileanaschinder.com

[Idriys Abdullah]

I think it is an interesting proposition especially for homeowners that want to age in place or new homeowners needing additional income but do not have the resources to build units on their own. The third party concept is currently being used to install solar panels with shared current benefits and eventual ownership by propertyowner. 

On Thu, Feb 25, 2021 at 10:44 AM Cheryl Cort <che...@smartergrowth.net> wrote:

To view this discussion on the web visit https://groups.google.com/d/msgid/adudc/062067F6-1E1C-461F-8AD6-773FBFF55D3B%40smartergrowth.net.

[Ileana Schinder]

Tthe main difference between solar panel leasing and ADU leasing is that, by allowing others partial ownership of your property, you are giving them the right of how/when/how long that property will be used. Solar panels don

The solar panels are just sitting there, the conditions of the ADU may limit how you can sell or pay for your current house.

Make sure you read the small print VERY carefully. Also, consult with the current holder of your mortgage because engaging in a financial commitment with your main house DOES have legal implications. 

ileana

To view this discussion on the web visit https://groups.google.com/d/msgid/adudc/CAAQhhpSFG2OwqAF%3DmZAUFvRh6_dJOD_N%3DcOK6mDNfqV3s6qi4w%40mail.gmail.com.

[Sally Shea]

Sally Shea

202-352-7292

On Feb 25, 2021, at 10:44 AM, Cheryl Cort <che...@smartergrowth.net> wrote:



To view this discussion on the web visit https://groups.google.com/d/msgid/adudc/062067F6-1E1C-461F-8AD6-773FBFF55D3B%40smartergrowth.net.

[Medwards]

Great points ... thank you!

Marci Edwards, MBA, PMP
Managing Director
REAL Big Dreamz-Real Estate Investing
202-521-9113 

[Ileana Schinder]

This is very important to remember, an ADU... as in "an accessory structure that functions as a home" will condition the use of private space for both occupants. Both occupants will have rights (you can't simply evict grampa!) that will greatly condition your right to your own property. If someone else is living in your backyard, you cannot simply blast music at 3am. This may sound funny but personal relationships must be organized legally for things to go smoothly. Your bank will want to know if their right to repossess your house (and your tenant!) will be limited in any shape or form. 

I love ADUs (I design a lot of them!) but i need to be straightforward with those that are trying and testing new methods to finance them. 

Hugs

ileana

[Shadonna Logan]

There are liability questions also, especially with rentals and tenants.   In the event there is an issue in tenant friendly DC who is responsible. 

To view this discussion on the web visit https://groups.google.com/d/msgid/adudc/CAPzHPzOeV47L%2BP6vV9G6sC_p7vqe8nc1Nx2UsbR-BNMmcfAKmg%40mail.gmail.com.

[Adriana Navarro]

We are basically talking about a ground lease here- a mechanism that is very popular for commercial real estate (ground lease for 99 years) and is used in other projects in certain cities and settings (i.e. reserves, or cities like Baltimore.). Banks should technically be familiar with these and be able to work with things, but things gets very difficult and murky if/when the property is sold… Moreover, ground leases have been frowned upon in certain context as the tenancy/ownership down the line has gotten very convoluted and potentially untraceable, this is the case in Baltimore now…

Bref, my inquiries on the matter have pointed to the fact that it very much depends on the practices and politics of place- unfortunately, there are no precedents in DC that could facilitate the path here. 

Back to Makara, unless they are imposing some pretty strict rules/contracts with the home owners- i.e. not allow them to sale in x time, or take a percentage of the home sale, or something of the sort, which does not seem too popular or practical, I am not sure how they are going about things dealing with a potential sale of the land. 

From what I gathered in Makara’s website, they are paying the property owner for a pilot program- to build on the land to display their model and market it for x amount of time. I am not sure they are renting the model… 

Adriana NAVARRO-SERTICH 

urbanSEED  

[

Founder + Principal]

+1 703 8510117 I adri...@urbanseedcollaborative.com

. urban . Social . Economic . Environmental . Development . 

[Enacting positive change through architecture, urban design, planning + development] 

 

On Feb 25, 2021, at 10:44 AM, Cheryl Cort <che...@smartergrowth.net> wrote:

To view this discussion on the web visit https://groups.google.com/d/msgid/adudc/062067F6-1E1C-461F-8AD6-773FBFF55D3B%40smartergrowth.net.

[Ileana Schinder, PLLC]

I understand the commercial 99-year lease agreement between business entities. I am curious what role a ground lease will play if the homeowner dies? What right to the land (and at what cost) can the ADU be removed or bought out right? I mean, considering that most properties already have a mortgage on them, im very curious what my bank will say if i show them that i entered into a long term agreement with someone else over the same property. What if stop paying the mortgage of the land? 

Sorry, i have lots of questions! 

Ile

Pardon per le tpyo. Sent from a iphone.

On Feb 25, 2021, at 4:30 PM, Adriana Navarro <adriana.nav...@gmail.com> wrote:



To view this discussion on the web visit https://groups.google.com/d/msgid/adudc/FC853FBF-860B-4F39-83B1-F23CCC139A0C%40gmail.com.