How to Hire Architects and Engineers for Real Estate Development

Introduction

On this episode of the Affordable Housing & Real Estate Investing Podcast, host Kent Fai He sits down with Alvin Hope Johnson, president of Hope Housing Foundation, for a behind-the-scenes look at what it really takes to be a developer.

This conversation covers the nuts and bolts of refinancing with tax-exempt bonds, documenting legitimate debt, and building the right team of professionals to execute large-scale projects. For developers and investors, it is a rare glimpse into the daily priorities, challenges, and decisions that shape affordable housing development.

How Do Developers Use Tax-Exempt Bonds for Refinancing?

Alvin explains how his team refinances properties using tax-exempt bonds.

• Old liens and debt tied to legitimate property expenses can be retired through bond proceeds.
  
  

• Every dollar must be documented to show it went toward acquisition, renovations, or property improvements—not unrelated expenses.
  
  

• Legal teams require detailed paper trails, from promissory notes to invoices, all tied back to title records.
  
  

For developers, the lesson is clear: document everything well. Even when working with trusted partners, clear notes, receipts, and recorded liens protect both lenders and borrowers during refinancing.

Why Is Documentation Critical in Affordable Housing Finance?

One of the biggest takeaways Alvin shares is the importance of recordkeeping.

• Early in his career, Alvin sometimes documented loans loosely with multiple small promissory notes.
  
  

• Today, he prefers consolidated notes tied to specific project purposes, such as roof repairs.
  
  

• Thorough documentation makes it easier for attorneys and tax advisors to confirm debt eligibility under bond rules.
  
  

As Alvin puts it, “You borrow money from your mama, document, document, document.” Strong records build flexibility for future refinances and protect credibility with lenders.

What Do Lenders Look for Before Funding Development?

Lenders need confidence that their money will create a completed, income-producing asset. Alvin outlines what they require:

• Clear title: No unresolved liens or ownership disputes.
  
  

• Construction documents: Blueprints, landscape plans, and permits in place.
  
  

• Contractor budget: A line-item budget with realistic costs.
  
  

• Third-party validation: A plan and cost review study confirming bids are within market range.
  
  

• Performance bonds: Guarantees that projects will be completed, even if contractors fail.
  
  

For developers used to single-family rentals, the analogy is submitting W-2s and pay stubs during mortgage underwriting. Lenders want every piece of evidence that the project is shovel-ready and financially sound.

How Should Developers Hire Architects and Engineers?

When it comes to building a team, Alvin emphasizes experience and relationships.

• Architects: Do not hire someone whose portfolio does not match your asset type. A single-family architect is not the right choice for a 200-unit apartment community.
  
  

• Engineers: Local knowledge matters. Alvin often hires engineers recommended by contractors because they have credibility with city officials and know the approval process.
  
  

• Referrals: Trusted referrals from contractors, cities, or other developers are the best source of reliable team members.
  
  

Kent adds that cities often recognize which architects and engineers consistently deliver quality work, making municipal referrals a smart move.

What Traits Make Someone Successful in Real Estate Development?

Beyond technical expertise, Alvin looks for attitude and belief in the vision.

• Team members must believe in ambitious goals, like delivering 20,000 units, rather than focusing on limitations.
  
  

• Vendors must show flexibility when payments are delayed, understanding that lenders—not developers—sometimes hold up draws.
  
  

• Internal team members must add value not only to the business but to each other’s lives, creating a supportive culture.
  
  

In Alvin’s words, “I’m not going to put anybody on my team that doesn’t think we can get to 20,000 units.”

Key Insights from Alvin Hope Johnson

• Tax-exempt bonds can refinance debt, but only if records clearly show expenses tied to the property.
  
  

• Document everything, from small loans to major renovations, to create flexibility for future financing.
  
  

• Lenders require detailed plans, third-party validation, and contractor guarantees before releasing funds.
  
  

• Architects and engineers must have relevant experience and strong relationships with city officials.
  
  

• Success in development depends as much on attitude and belief as on technical skills.
  
  

Memorable Quotes from Alvin Hope Johnson

“You borrow money from your mama, document, document, document”.

“I wouldn’t hire an architect to do an apartment building who has only done small houses”.

“I’m not going to put anybody on my team that doesn’t think we can get to 20,000 units”.

“It’s more than just price. It’s more than just the ability to do the work. It’s really more about attitude”.

Common Questions Answered in This Episode

How do tax-exempt bonds work in refinancing?
They allow developers to retire legitimate project debt and fund renovations, but require strict documentation.

Why is documentation so important?
Without clear records, lenders and attorneys cannot confirm debt eligibility, which could jeopardize bond financing.

What do lenders want to see before funding development?
Clear title, permits, contractor budgets, third-party validation, and performance bonds.

How do you hire the right architect or engineer?
Choose professionals with relevant experience and strong local relationships, ideally recommended by trusted sources.

What traits matter most on a development team?
Belief in the vision, flexibility during challenges, and a willingness to add value beyond just a paycheck.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. By featuring experts like Alvin Hope Johnson, Kent provides unmatched insights into the realities of development, financing, and team-building.

DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.