Exactly! This is real education. I'm working on a 22 unit myself and I feel like I went to class from this information. I wish I can ask this guy a few questions
@@Visiondrivenllc get on our email list by getting the free version of Rehab Valuator at www.RehabValuator.com. You'll get emails directly from me once you sign up. Just reply and ask me your questions
Ok I've watched more than a few videos and read more than a few books on this stuff... This was excellently put together, includes details most people leave out and had a great explanation on land valuation and using permitting to raise the value. Thanks! Subbed!
Great video. I’m a young software engineer trying to do this within they next year or 2 and you’ve done a well job giving a high level to detail walkthrough. Cheers bro!
Love this man. I have a residential concrete foundation business. I use my profit to buy rentals but the market is crazy right now and I have a good bit of vacant land so I decided to start building on them. Got approved for my duplex then I want to do a 4 plex right next to it.
Boom! That's awesome! If you got vacant land already at a cheap cost basis, then you're definitely better off developing it rather than chasing over priced rentals
:) Wasn't meant to be a sales presentation, rather trying to give back. Very few people teach this stuff. But yes, the software makes things a lot easier!
Phenomenal content! My wife and I are both 27 and have managed to save up about $140,000 to start buying 2-4 unit properties. We’ve considered building but have always had a bit of hesitation about it. This video really portrayed some positive aspects of owning new builds. On a side note, are you involved at all with BiggerPockets? This content seems right on the same level as what they’re producing. Great work.
Hi Nate. That's some serious money savings for only being 27. Congrats! You're already way ahead of most people your age. Make sure you check out the rest of our development and wealth building content on our site. I think you'll enjoy it: www.RehabValuator.com/developers
0:00:00 - Introduction and Overview 0:02:25 - Advantages of Duplexes for Rental Properties 0:05:57 - Building Wealth with Duplexes 0:07:05 - Detailed Case Study Process Overview 0:25:10 - Reserve Fund and Cash Flow 0:26:23 - Project Design and Criteria 0:32:51 - Land Purchase Options 0:39:16 - Deal Analysis Using Rehab Valuator Software 0:49:27 - Permanent Financing and Cash Flow 0:51:05 - Calculating Cash Flow and Return on Investment 0:51:44 - Refinancing to Free Up Capital 0:52:42 - Maximizing Cash Flow and Return on Investment 0:53:05 - Calculating Annual Cash Flow 0:54:09 - Using Software for Construction Loans Powered by UA-cam Chapters
Oh my goodness my friend, not into development, but damn the information is so detailed and I can't thank you enough my friend thank for taking the time to post this and sharing your knowledge to us.. once again thank you sir.
This is by far the best UA-cam video I have watched on real estate development plain and simple. I thank you very much. I am going in for a duplex “by right” and looking to get a third unit approved through planning board but after watching this and seeing your experience with “4 lots of record” I believe I have a similar situation and should potentially look into getting approved for 3 lots and duplexes on each. Thank you for your time. I will be saving this video and checking out the software.
Excellent is the least I can rate... it was EXPECTACULAR! You give us a lot of permanent value... thank you, Master Daniil. Now I need to process the abundant information received.
I love these videos. You are so smart. Thank you for the FREE knowledge. Really good stuff, man. We are finishing up our first investment prop. Having this software would've amazing but I am purchasing it soon. Thank you, thank you!!
Thanks for the video brother, it's 3am( been watching your videos for 2 hours now and I've been learning a lot from your videos, thanks for taking the time, you got a new subscriber here👏👏👏...love the software!!
I've always preached about residual income,for personal and pandemic reasons things went bad for me but i will get back on track, you speak the truth I have 36 acres on 2 rolling hills although you cant build on all but the views and agg use will make up and then some, thanks for the inspiration to move forward with the plan.
That's awesome, Dario. Use the topography as an asset not a flaw. Like you said. Build for optimal views, do some cool landscaping features, etc. I have a similar project coming up soon on about 5 acres. Topo is crazy but we'll work with the site, not against it.
Hey Daniil, Thanks for making this, it was super helpful. One question I had is, how do you estimate property taxes for a new build? By finding similar existing buildings and seeing what they pay or…? Thanks
Step 1: Figure out the As Built Value. Residential will trade based on comps. Commercial buildings based on NOI and cap rate (watch this: ua-cam.com/video/Mxvyo_bjZ4M/v-deo.html) Step 2: Multiple the ABV by the county tax rate. That's it! :)
This a very powerful software I got the premier and glad I did I am just getting started in wholesaling. I figured that was a good place to start. I am educated myself so I can go out there a get my first deal
I miss those days too! :) But deals like the one in this video still work as long as you're buying land correctly and watching your construction costs!
Was looking for this comment because I have the same question- @Rehabvaluator what would you update about this video to educate new investors how to navigate this new “higher for longer” interest rate environment? I’m guessing that seller financing and hard money loans are more important than ever, and probably can’t relay on cash out refi like before. Right track?
@@Jaybearno Seller financing yes. Hard money is really expensive and I don't recommend it. Can still make #s work but have to source land cheap and value engineer your builds!
Hahahaha it's 2024, how did the waiting go? Still waiting on the loan rates to be below 3.5? 😂😂😂 should've pulled the trigger back then, at this point the bank would be paying you for that money.
This is extremely clear and I'm inspired by the software. I know this will take work but I'm a lot less intimidated after binge watching your content these last few weeks. I'm in the St. Louis MO market if you have any contacts or inner circle members in this area I'd love to connect with them
What an amazing presentation! All the hard facts and details are well explained. I'm so much interested in this venture after watching this presentation. Thank you
Awesome presentation Daniil! Thanks for doing this I found this at the perfect time. I just opened my real estate company and I for sure going to sign up for your program. Thanks so much!🙏
I own a doublewide with 1 acre of land and i am allowed 2 dwellings. I just had a meeting with a builder and was told he can build me two duplexes (4 ) doors for $93/ft 1800sqft ea. this video just opened my eyes.
I am highly skeptical of $93/ft right now in any part of the US. Make sure he's quoting all in. Sometimes builders will exclude sitework, utilities, trim out fixtures, appliances, etc. I doubt anyone can build a decent product right now all in for $93/ft. I recorded the video you're watching before the COVID spike in prices. Prior to 2020 I could build for $90/ft. Now my duplexes are more around $130. If I skimped on finishes I could probably get into the $115-$120 range
Calling Rehab Valuator a "calculator" is like calling a Tesla a cupholder :) Also pretty insulting. And no there's not a one time price. It's a cloud based software that we have to host, update, support on an ongoing basis. So we charge monthly or annually just like any other cloud based software.
Thank you for taking the time to put together this fantastic presentation. Truly a great education given for free no less. I'll be watching a few times I'm sure to take it all in.
I'm buying property to build myself a home this next year using cash. I would like to use cash to build single family rentals. In the market I'm in short term rentals can pull in $50k a season, long term can pull in $25k annual. I evaluated using cash vs the debt refinancing model. Makes way more sense to use cash. I could generate more cash flow with 4 properties using cash with zero risk than 40 properties financing them with the bank taking a huge cut and much higher risk.
This information is so generous. I am graduating college soon and am currently looking for land to start building my first duplex. This video came at just the perfect time for me
Holly cow, Matt! I wish I started right after college. Good for you! Sign up for the free version of Rehab Valuator. That will get you on our email list and you can reply directly back to me (Daniil) - I'll be happy to try to help you!
Osazuwa Jason Omoregie no! Anyone can build a house all of the information you need is all online if you look for it enough. It’s easier if you build through a contractor instead of doing all of the work yourself.
@@limitbreakersb3578 no education needed. My two brothers had a middle school education one has over a million worth in properties. So no college degree needed, some of the most successful millionaire and billionaire did not go to college. It only in your mindset.
This was brilliant...thank you Daniil! I have a question though...where did you source plans/blueprints for your ideal duplex when you were first starting out? Did you draw up your own ideas or have to pay to have them drawn up by an architect?
I love your videos! I like how you break everything down. Question on the duplexes in this video: it looks like the two duplexes are sharing a wall. Do cities not consider that a quadplex? How does that work? Thanks!
Thanks, Daniel. Each duplex is on a separately deeded lot with it's own address. 2 separate building permits. It looks like a quad from the outside and basically it is. But because it's 2 separate lots, we can build them cheaper and they're more liquid. I can sell each duplex to separate buyers if I want or I can sell the quad
@@RehabValuator oh cool, I didn’t know you could do that! I assume that only works if zoning has a 0’ setback on the sides? Thanks so much for your videos. They’re super helpful!
Hey I love the detailed breakdown. I’m curious what your numbers are for cost to build 3 years later now that it’s 2023? $90/ft sounds like dreamland. Here in Michigan I’d say it’s closer to $250-$300/ft.
Woa! $250-$300/ft seems really high esp in Michigan! The same duplexes that used to cost me $90/ft now in 2nd half of 2023 cost around $130-$135 to build. But rents are also 30-35% higher so numbers are similar. What's changed though is cost of $$. Interest rates are twice as high. But these deals still work great if you can get the cost of land down
Duplex ARV (or ABV - As Built Value) is based on comps. Commercial properties ABV is calculated based on NOI and market cap rates. We go deeper into that method here: ua-cam.com/video/Mxvyo_bjZ4M/v-deo.htmlsi=UgyLVoO8jYR5LzWF
(162000+32500+x)*1.25=325000 solve for x=65500 that is how you would calculate your profit margin. Add costs, multiply by your desired profit over 100% return and solve for your unknown variable of cost of land.
The hardest part is getting the subdivision approved. In my county they basically put that to a complete stop, b/c people were coming in and tearing down large old single family homes and building Quads. They claimed they didn't want multi-family junking up the neighborhoods which is ridiculous. There is a significant and critical shortage of middle housing right now (which have affordable apartments, unlike the new complexes)
In my town they purposely mix single and multifamily so you don't end up with segregated income populations in a section of town. There was one multimillionaire who bought up all the property around his neighborhood to prevent an apartment complex from being built. Lol. It is what it is.
Hi Mel. When discussing construction costs, I typically lump in soft and hard costs. For residential projects like this, my soft costs (architectural, any civil, etc) usually run under $5/ft. On commercial when we have to engineer MEP drawings (mechanical, electrical, plumbing) it's closer to $10/ft
Hi - this is a great video! Very helpful! QUESTION: As of January 2024, in what markets is building duplexes still as profitable as shown in this video?
We are still building. Definitely harder with interest rates being high but numbers in our market still pencil out. The key is getting land at a good cost basis! Check out our channel and watch the Free Land video!
Very useful video and in depth analysis of your project, with address, exact numbers and costs, especially finding this 2020 costs, it should be about the same here in Williamsburg VA. I just did one of my first flips here in town and was wondering how different it would be to build from the ground up. I was a land development engineer but I never had access to this kind of details so it’s not as fulfilling as doing RE. Truly appreciated! I would like to help and learn more if possible! I will watch more of your content and try to learn from somebody that actually does the business. 🙏
Glad I can help, Filip. I am guessing you're looking at pretty similar constructions costs in Williamsburg. Maybe even better labor prices than where I develop. Check out the rest of the development content here: rehabvaluator.com/developers and reach out to me if I can help: daniil@rehabvaluator.com
Thank you so much for making this video! what about the costs to connect utilities? Does the construction company take care of that with the $90/sqft to build total?
That cost will vary. With infill development, we often are able to hook up to existing water lines and sewer latterals. Sometimes we can't and have to pay to dig up utilities and new connection fees.
Wow 🤩 this so profound, I’m in South Africa 🇿🇦 and I find this video very informative. It’s what I really needed and im motivated we will succeed with my partners, will surely download the pdf
Does the bank wire you the entire loan/money for the construction? Do they inspect your project development ? Or does the bank expect you to fund the construction cost upfront, and then the bank refunds you for each Devision you complete? How is the interest rate calculated during the short-term of the construction loan? Do you pay a monthly interest only payment for the entire loan ? I'd appreciate it if you could clarify this portion. Thank you in advance
No the bank will usually fund in draws. They will reimburse you for work already done in stages and only charge interest on the amount of $ actually funded. We typically make monthly interest payments. Hope that clarifies it!
PLEASE SHARE THIS if you found this useful! Also, if you find this type of in-depth real estate development and wealth building content appealing, there is a boatload more just like this here: RehabValuator.com/developers
Hi ! I have been repeating this video for couple of times now. But since price is so different now, Can you get the updated priced video as of 2024. Thanks !!
Hi there. Have you checked out the more recent duplex videos I put out on this channel? They reflect updated costs. Also in Rehab Valuator Premium we give you pre-built construction templates that include up to date numbers. Check out the top video here: rehabvaluator.com/project-management
Hey guys! Here's a link to a follow up training on how I am refinancing this deal along with the exact PDF banker presentation you can download and study! rehabvaluator.com/real-estate-development-training/refinancing-case-study/
The best video out here…. I’m looking at 1 parcel that’s 1.5 acres…. I am confused a little, can I build 2 four units using “by right” or would I need to get permission?
@@AnthonyBrown-xd2lw what we teach will work for 4-plexes but in our market quads are built by commercial code so cost goes up. In this video, I am building 2 duplexes attached. They're on separate lots so I can build them by residential code but they effectively form 4-plexes if you look at them from the outside.
So are you doing the construction yourself or are you getting a general contractor? What is the best way to not get screwed by a general contractor if I'm solely the investor
I hire a general contractor for most of our projects. The topic of dealing with contractors is a whole separate video or even series. Research people carefully. Get references. Go look at their projects and their work. Start small. Don't give upfront deposits un-necessarily. Get a local attorney to review your contracts. Check DPOR websites on status of their license and any previous complaints (Department of Professional and Occupational Regulation)
Loved the video. One thing I’d like to mention is that you aren’t estimating the value of the land. You are estimating it’s maximum price based on methods of selling property. There is a little bit of a difference but what you are regarding to apply a perfectly to real estate.
Ron. Thanks for your feedback! I think that's the beauty of land, in that it's value can be perceived completely differently by different people depending on intended use. So to me it may be worth 2x what the other guy is willing to pay. But I would also say that "value" and max price that I can get in the market for it are one and the same.
Hi Josh. Actually wrapping this project up right now. 4 units already moved in. The remaining 4 are moving in next week. Turned out amazing. Just had professional pics done. I'll try to record a case study of how the finishes and the final #s turned out. Costs ran higher but so did the rents (rents came in much higher actually)
Thanks for the quick response! I’ve heard to estimate costs 25% more than you expect. I’m glad your rents came in higher! I normally use super conservative numbers whenever I crunch my numbers. I’m 23 and am buying my first 3 unit property which should hopefully close in the next 2 months. Very excited to get into the real estate game! Would love to see an update with actual numbers whenever you get around to it. Great work
Plans come from a good local architect. That's who typically creates plans. Cost to build - talk to other local builders/investors in your market. Start there.
Daniil, your case study is so informative! It's an accounting system plus a project management system. You mentioned Scope of Work there, would you mind sharing more details of how to deal with SOW and subcontractors?
SOW/Subs - it is typically done by trade, i.e. the electrician/plumber/hvac will have a rough-in bid and then a finish bid. If you want to keep costs down, do your own shopping and have fixtures/materials on-site. Same for drywall, etc, etc.
I LOVE how simple this is gonna make my first big deal! Definitely going to purchase 🙏 I have a question; You say the first step is getting the land under contract but the PERFECT land for me right now (that I'm going to build duplexes on) is owned by the govt and comes with a few other lots on the block AND a cheap cringy house. They want to see that I've got plans/funds for the project. In this case, I have to use a fha 203k to get the house in order before I can start plopping down duplexes. My biggest concern is that I'll arouse interest in this pretty vacant block while securing the funds. What should my steps be in this case?
Any way to get the entire thing under contract? What about getting a first right of refusal from the gov't? Your argument in either case can be that you want to keep a cohesive design for this block. You plan to bring a great product to market and want to make sure that the rest of the block gets developed in a similar, high quality fashion. Other ideas are to find $ partners now and take down the rest of the lots.
Hi, I have watched the video a couple times and truly appreciate the time you have taken for these lectures. Question since each building has 2 duplexes that are attached and each under different land parcels and permits, aren't each of them crossing into each other's property lines ? Are setbacks between the lines an issue? Looking at buying an acre property that is zoned multifamily but trying to assess logistics on how and what to build to maximize land.
What if the county I live in says that “…(county) has not adopted planning or zoning. And that no occupancy permits or building permits are required in unincorporated areas in the county”. Does that mean that I have to get it zoned first before building and set the zone for that lot? Or I can design a layout for the land as I want? Thanks for all the information it is crazy this was all free!
Extremely grateful for this resource. One question: When you say 4 duplexes do you mean townhomes or row units? Duplexes are different, usually formated with a seprate suite in the bsmt or third floor. There is no such thing as 2 attached houses. Those would be called semi-detached homes.
Near me there are three types of duplexes. 1 a signal building with two apartments inside. Building was built for the specific purpose of being a duplex. 1 shared entrance and 1 shared basement. There are home conversions where someone turns a big old house into multiple units. Another duplex is a twin home side by side built on a single lot. Its close to a townhome/ row home in design but it’s joined by the land. Two homes with 1 purchase price.
@@washablejunk281 The later is called a semi-detached home. Each side, or half, is termed a semi-detached home. Duplexes are 2 units within one home, usually a division of up and down.
Check out this BRAND NEW training on how to get FREE LAND: ua-cam.com/video/HWZX8ec1dO0/v-deo.html
🎉🎉🎉
No fluff. Most UA-camrs are trying to be famous and fashionable and cool with their real estate investing. You deliver the hard facts. No fluff.
Thank you. No lambos here :)
Exactly! This is real education. I'm working on a 22 unit myself and I feel like I went to class from this information. I wish I can ask this guy a few questions
@@Visiondrivenllc get on our email list by getting the free version of Rehab Valuator at www.RehabValuator.com. You'll get emails directly from me once you sign up. Just reply and ask me your questions
Thanks man will do.@@RehabValuator
Exactly why I watch this channel instead of all the rest..
This should be called Multi family Real Estate 101! This is priceless what he has given away! Truly thankful and I will pass it on.
Glad you see the value! Check out the newer content on our channel - we're publishing a lot more development content lately
Almost like a No BS Crash Course, Clear and Precise. Love the Software! Excellent Presentation! Thank You! Namaste🙏🏽
Appreciate the compliments and thanks for watching!
Nice! I’ve been building build to rent and build to sell duplexes in Houston since 2016. Good video.
You’re darn right there aren’t many good how-to videos on real estate development. The details explained here are second to none. Great job!
Ok I've watched more than a few videos and read more than a few books on this stuff... This was excellently put together, includes details most people leave out and had a great explanation on land valuation and using permitting to raise the value. Thanks! Subbed!
Appreciate your compliments and glad you enjoyed the content!
Two big thumbs up! In a world filled with videos that only say "you can do it", you provide facts and actual tools necessary to be successful! Thanks
Appreciate the great feedback! Definitely trying to keep the fluff out of these videos :)
Great video. I’m a young software engineer trying to do this within they next year or 2 and you’ve done a well job giving a high level to detail walkthrough. Cheers bro!
You're welcome, Ronald. Make sure you check out the rest of our development training here: rehabvaluator.com/developers
Love this man. I have a residential concrete foundation business. I use my profit to buy rentals but the market is crazy right now and I have a good bit of vacant land so I decided to start building on them. Got approved for my duplex then I want to do a 4 plex right next to it.
Boom! That's awesome! If you got vacant land already at a cheap cost basis, then you're definitely better off developing it rather than chasing over priced rentals
best sales presentation I have ever seen LOL im sold
:) Wasn't meant to be a sales presentation, rather trying to give back. Very few people teach this stuff. But yes, the software makes things a lot easier!
Phenomenal content! My wife and I are both 27 and have managed to save up about $140,000 to start buying 2-4 unit properties. We’ve considered building but have always had a bit of hesitation about it. This video really portrayed some positive aspects of owning new builds. On a side note, are you involved at all with BiggerPockets? This content seems right on the same level as what they’re producing. Great work.
Hi Nate. That's some serious money savings for only being 27. Congrats! You're already way ahead of most people your age. Make sure you check out the rest of our development and wealth building content on our site. I think you'll enjoy it: www.RehabValuator.com/developers
What an amazing presentation! So detailed & well explained. I’m definitely considering new construction duplexes after seeing this video. Thank you.
Appreciate the great feedback, Portia!
0:00:00 - Introduction and Overview
0:02:25 - Advantages of Duplexes for Rental Properties
0:05:57 - Building Wealth with Duplexes
0:07:05 - Detailed Case Study Process Overview
0:25:10 - Reserve Fund and Cash Flow
0:26:23 - Project Design and Criteria
0:32:51 - Land Purchase Options
0:39:16 - Deal Analysis Using Rehab Valuator Software
0:49:27 - Permanent Financing and Cash Flow
0:51:05 - Calculating Cash Flow and Return on Investment
0:51:44 - Refinancing to Free Up Capital
0:52:42 - Maximizing Cash Flow and Return on Investment
0:53:05 - Calculating Annual Cash Flow
0:54:09 - Using Software for Construction Loans
Powered by UA-cam Chapters
I am coming back to watch again. This is GOLD
Sure is - glad you think so! :)
Thank you just found out my first rental property is zoned r4. Getting Demo cost to remove old home and build apartments. Thank you for this
Boom! Nice work, Keisha! Good luck with the project!
Hands down the best video I have ever watched. Stumble across this and WOW, pretty amazing.
That's a hell of a compliment, Mike given how much content is on UA-cam (and everywhere else online). Thank you!
Oh my goodness my friend, not into development, but damn the information is so detailed and I can't thank you enough my friend thank for taking the time to post this and sharing your knowledge to us.. once again thank you sir.
You're welcome :)
This is by far the best UA-cam video I have watched on real estate development plain and simple. I thank you very much. I am going in for a duplex “by right” and looking to get a third unit approved through planning board but after watching this and seeing your experience with “4 lots of record” I believe I have a similar situation and should potentially look into getting approved for 3 lots and duplexes on each. Thank you for your time. I will be saving this video and checking out the software.
Love hearing that feedback, Jeremy and good luck with your project! Glad we can be of service with it.
Budgeting in for maintenance is a must have..I am budgeting in for Solar Panels now and I have a ways to go!
Right on, Martin!
Excellent is the least I can rate... it was EXPECTACULAR! You give us a lot of permanent value... thank you, Master Daniil. Now I need to process the abundant information received.
Glad you liked it! Can always watch a few times to process all the info properly :)
I’m currently brand new In this business and I’m glad I saw your video while I was searching for free training .
This is all new to me and I want to thank you for such great info.
You answered so many questions I had.
Appreciate it.
You're very welcome, Matthew!
I love these videos. You are so smart. Thank you for the FREE knowledge. Really good stuff, man. We are finishing up our first investment prop. Having this software would've amazing but I am purchasing it soon. Thank you, thank you!!
Better late than never! :)
Great video, this is right up my alley. What I didn’t see or may have missed was, the cash flow after you pay your investors!
No investors in this one
Thanks for the video brother, it's 3am( been watching your videos for 2 hours now and I've been learning a lot from your videos, thanks for taking the time, you got a new subscriber here👏👏👏...love the software!!
Nothing better than my voice at 3am huh? :) Glad you're enjoying the content and thanks for the great feedback!
Thank you so much. You really are helping tons of souls with this information. I am in debt with you, I will start building mine soon after this
Glad to hear it, Jose and you're very welcome!
Subscribed!! Your awesome. No ebooks or trying to sell a course. Straight forward Thank you!
I've always preached about residual income,for personal and pandemic reasons things went bad for me but i will get back on track, you speak the truth I have 36 acres on 2 rolling hills although you cant build on all but the views and agg use will make up and then some, thanks for the inspiration to move forward with the plan.
That's awesome, Dario. Use the topography as an asset not a flaw. Like you said. Build for optimal views, do some cool landscaping features, etc. I have a similar project coming up soon on about 5 acres. Topo is crazy but we'll work with the site, not against it.
Excellent apartment to duplex comparison
Thank you!
I am so happy I found your channel! Thank you
Glad you found us as well!
Thanks for sharing. I’ve been looking for a 4 plex to house hack but prices are insane. I’ve been wondering about building one.
Glad it was helpful!
Hey Daniil,
Thanks for making this, it was super helpful. One question I had is, how do you estimate property taxes for a new build? By finding similar existing buildings and seeing what they pay or…?
Thanks
Step 1: Figure out the As Built Value. Residential will trade based on comps. Commercial buildings based on NOI and cap rate (watch this: ua-cam.com/video/Mxvyo_bjZ4M/v-deo.html) Step 2: Multiple the ABV by the county tax rate. That's it! :)
Dude, you are awesome!!! Thank you soooo much!!! You are down to earth!!! No crappy verbal BS. Ordering the software. Please make more videos!!!
Appreciate the awesome feedback! And definitely planning more videos.
This a very powerful software I got the premier and glad I did I am just getting started in wholesaling. I figured that was a good place to start. I am educated myself so I can go out there a get my first deal
Thanks, Rafael!
Saving this video for when interest rates on loans are back to 3.5%.
I miss those days too! :) But deals like the one in this video still work as long as you're buying land correctly and watching your construction costs!
Was looking for this comment because I have the same question- @Rehabvaluator what would you update about this video to educate new investors how to navigate this new “higher for longer” interest rate environment? I’m guessing that seller financing and hard money loans are more important than ever, and probably can’t relay on cash out refi like before. Right track?
@@Jaybearno Seller financing yes. Hard money is really expensive and I don't recommend it. Can still make #s work but have to source land cheap and value engineer your builds!
Hahahaha it's 2024, how did the waiting go? Still waiting on the loan rates to be below 3.5? 😂😂😂 should've pulled the trigger back then, at this point the bank would be paying you for that money.
@@dondeestamycrypto636 interest rates are lower than they were 10 months ago currently
This is extremely clear and I'm inspired by the software. I know this will take work but I'm a lot less intimidated after binge watching your content these last few weeks. I'm in the St. Louis MO market if you have any contacts or inner circle members in this area I'd love to connect with them
@2:20 WHY new construction
@11:25 land use
@16:50 land
Daniil this has been extremely helpful. I am hopefully putting 8 duplex lots under contract tonight
Nice! Good luck Michael!
May God bless you for bringing this out, Hopefully I have my first construction on 2023.
What an amazing presentation! All the hard facts and details are well explained. I'm so much interested in this venture after watching this presentation. Thank you
Awesome presentation Daniil! Thanks for doing this I found this at the perfect time. I just opened my real estate company and I for sure going to sign up for your program. Thanks so much!🙏
Hi Danny. You're very welcome and congrats on opening your company! Look forward to having you join us.
I own a doublewide with 1 acre of land and i am allowed 2 dwellings. I just had a meeting with a builder and was told he can build me two duplexes (4 ) doors for $93/ft 1800sqft ea. this video just opened my eyes.
I am highly skeptical of $93/ft right now in any part of the US. Make sure he's quoting all in. Sometimes builders will exclude sitework, utilities, trim out fixtures, appliances, etc. I doubt anyone can build a decent product right now all in for $93/ft. I recorded the video you're watching before the COVID spike in prices. Prior to 2020 I could build for $90/ft. Now my duplexes are more around $130. If I skimped on finishes I could probably get into the $115-$120 range
I want to do something like this this training will be fantastic to listen too.
Enjoy! :)
Excellent presentation; very informative and thought provoking. Thank you for sharing your expertise and insights!
You're very very welcome!
Not a fan of subscriptions. Do you have a price to buy the calculator for good?
Calling Rehab Valuator a "calculator" is like calling a Tesla a cupholder :) Also pretty insulting. And no there's not a one time price. It's a cloud based software that we have to host, update, support on an ongoing basis. So we charge monthly or annually just like any other cloud based software.
Thank you for taking the time to put together this fantastic presentation. Truly a great education given for free no less. I'll be watching a few times I'm sure to take it all in.
You're welcome! Happy to be giving back
Very valuable information
Very useful, thank you so much
I need this for my project
You're very welcome!
I'm buying property to build myself a home this next year using cash.
I would like to use cash to build single family rentals. In the market I'm in short term rentals can pull in $50k a season, long term can pull in $25k annual.
I evaluated using cash vs the debt refinancing model.
Makes way more sense to use cash. I could generate more cash flow with 4 properties using cash with zero risk than 40 properties financing them with the bank taking a huge cut and much higher risk.
This video is wonderful. It helped us answer alot of questions.
Very glad to hear !
This information is so generous. I am graduating college soon and am currently looking for land to start building my first duplex. This video came at just the perfect time for me
Holly cow, Matt! I wish I started right after college. Good for you! Sign up for the free version of Rehab Valuator. That will get you on our email list and you can reply directly back to me (Daniil) - I'll be happy to try to help you!
@@RehabValuator do you need to go college to build a house?
Osazuwa Jason Omoregie no! Anyone can build a house all of the information you need is all online if you look for it enough. It’s easier if you build through a contractor instead of doing all of the work yourself.
@@limitbreakersb3578 no education needed. My two brothers had a middle school education one has over a million worth in properties. So no college degree needed, some of the most successful millionaire and billionaire did not go to college. It only in your mindset.
This was brilliant...thank you Daniil! I have a question though...where did you source plans/blueprints for your ideal duplex when you were first starting out? Did you draw up your own ideas or have to pay to have them drawn up by an architect?
I hired a good local architect and worked with them
I love your videos! I like how you break everything down. Question on the duplexes in this video: it looks like the two duplexes are sharing a wall. Do cities not consider that a quadplex? How does that work? Thanks!
Thanks, Daniel. Each duplex is on a separately deeded lot with it's own address. 2 separate building permits. It looks like a quad from the outside and basically it is. But because it's 2 separate lots, we can build them cheaper and they're more liquid. I can sell each duplex to separate buyers if I want or I can sell the quad
@@RehabValuator oh cool, I didn’t know you could do that! I assume that only works if zoning has a 0’ setback on the sides? Thanks so much for your videos. They’re super helpful!
Hey I love the detailed breakdown. I’m curious what your numbers are for cost to build 3 years later now that it’s 2023? $90/ft sounds like dreamland. Here in Michigan I’d say it’s closer to $250-$300/ft.
Woa! $250-$300/ft seems really high esp in Michigan! The same duplexes that used to cost me $90/ft now in 2nd half of 2023 cost around $130-$135 to build. But rents are also 30-35% higher so numbers are similar. What's changed though is cost of $$. Interest rates are twice as high. But these deals still work great if you can get the cost of land down
Love this course. Wish I found it earlier.
Better late than never :)
Local real estate investor Richmond Virginia. I appreciate the video
Amazing content, these videos and access to this software are changing my life!!! Thank you forever
Love hearing that!
WOW!! JUST WOW 😲😀 Great video, FLAWLESS execution on the presentation👌🏽VERY valuable information here❕Thank You SO much😊👏🏽👏🏽👏🏽
Thank you!
Excited to keep learning. Have funds, will have time, need the knowledge and willing to gain the experience.
Awesome, Ryan! Make sure you check out more of our development content at rehabvaluator.com/developers (ton of good training there)
Great Information Daniel!! This is definitely a good blueprint for those who are starting from scratch!!
How did you calculate ARV? Or is that a synonym for something else?
Duplex ARV (or ABV - As Built Value) is based on comps. Commercial properties ABV is calculated based on NOI and market cap rates. We go deeper into that method here: ua-cam.com/video/Mxvyo_bjZ4M/v-deo.htmlsi=UgyLVoO8jYR5LzWF
Great software development for an amazing business plan. Thanks!
Best video I’ve seen on development, hands down
Thank you!
This is exactly what I was looking for!
Glad you found us! :)
wow you really gave me a lot to lean from. thank you . will surely share
Glad to hear it. And you're very welcome!
Dan is the man! Great content!
BOOM!
Brilliant as standard as always, Daniil!! Glad I found your product!!
Appreciate the compliments!
(162000+32500+x)*1.25=325000 solve for x=65500 that is how you would calculate your profit margin. Add costs, multiply by your desired profit over 100% return and solve for your unknown variable of cost of land.
I’m new and trying to build duplex for disabled persons! Can you share software you used?
The software in this video is Rehab Valuator: www.RehabValuator.com
Excellent vid. Thanks for educating us.
You're very welcome!
The hardest part is getting the subdivision approved. In my county they basically put that to a complete stop, b/c people were coming in and tearing down large old single family homes and building Quads. They claimed they didn't want multi-family junking up the neighborhoods which is ridiculous. There is a significant and critical shortage of middle housing right now (which have affordable apartments, unlike the new complexes)
In my town they purposely mix single and multifamily so you don't end up with segregated income populations in a section of town.
There was one multimillionaire who bought up all the property around his neighborhood to prevent an apartment complex from being built. Lol. It is what it is.
thank you I really appreciate this video , I just need to know how to use the software , Im planning to buy a land and build two unites
Thank you Sir for taking the time and giving such a thorough analysis!
You're very welcome!
This is awesome. A few years ago I bought a duplex on a double lot. Im not in the process of building 4 townhomes on the property.
Nice work, Adrian! Love it
Subbed!.. exactly what I was looking for.
First off, thank you soooo much for this. Completely new to this and this is a gift. But I do have a question. Is your $/sqft including your civil?
Hi Mel. When discussing construction costs, I typically lump in soft and hard costs. For residential projects like this, my soft costs (architectural, any civil, etc) usually run under $5/ft. On commercial when we have to engineer MEP drawings (mechanical, electrical, plumbing) it's closer to $10/ft
@@RehabValuator gotcha. Thank you so much for your prompt reply
Great information. Very helpful exactly what I was looking for
Glad to hear it!
Hi - this is a great video! Very helpful! QUESTION: As of January 2024, in what markets is building duplexes still as profitable as shown in this video?
We are still building. Definitely harder with interest rates being high but numbers in our market still pencil out. The key is getting land at a good cost basis! Check out our channel and watch the Free Land video!
Very useful video and in depth analysis of your project, with address, exact numbers and costs, especially finding this 2020 costs, it should be about the same here in Williamsburg VA.
I just did one of my first flips here in town and was wondering how different it would be to build from the ground up. I was a land development engineer but I never had access to this kind of details so it’s not as fulfilling as doing RE.
Truly appreciated! I would like to help and learn more if possible!
I will watch more of your content and try to learn from somebody that actually does the business.
🙏
Glad I can help, Filip. I am guessing you're looking at pretty similar constructions costs in Williamsburg. Maybe even better labor prices than where I develop. Check out the rest of the development content here: rehabvaluator.com/developers and reach out to me if I can help: daniil@rehabvaluator.com
Best hour I have spent in a long time!
That's a very nice compliment, Brett! Glad it wasn't time wasted!
Thank you so much for making this video! what about the costs to connect utilities? Does the construction company take care of that with the $90/sqft to build total?
That cost will vary. With infill development, we often are able to hook up to existing water lines and sewer latterals. Sometimes we can't and have to pay to dig up utilities and new connection fees.
@@RehabValuator thank you for responding
Wow 🤩 this so profound, I’m in South Africa 🇿🇦 and I find this video very informative. It’s what I really needed and im motivated we will succeed with my partners, will surely download the pdf
Very cool to have South African viewers!
Does the bank wire you the entire loan/money for the construction? Do they inspect your project development ?
Or does the bank expect you to fund the construction cost upfront, and then the bank refunds you for each Devision you complete?
How is the interest rate calculated during the short-term of the construction loan? Do you pay a monthly interest only payment for the entire loan ? I'd appreciate it if you could clarify this portion. Thank you in advance
No the bank will usually fund in draws. They will reimburse you for work already done in stages and only charge interest on the amount of $ actually funded. We typically make monthly interest payments. Hope that clarifies it!
PLEASE SHARE THIS if you found this useful! Also, if you find this type of in-depth real estate development and wealth building content appealing, there is a boatload more just like this here: RehabValuator.com/developers
Hi ! I have been repeating this video for couple of times now. But since price is so different now, Can you get the updated priced video as of 2024.
Thanks !!
Hi there. Have you checked out the more recent duplex videos I put out on this channel? They reflect updated costs. Also in Rehab Valuator Premium we give you pre-built construction templates that include up to date numbers. Check out the top video here: rehabvaluator.com/project-management
Thank you bro! This was better that university
Glad I could help!
Hey guys! Here's a link to a follow up training on how I am refinancing this deal along with the exact PDF banker presentation you can download and study! rehabvaluator.com/real-estate-development-training/refinancing-case-study/
Awesome training! People pay thousands for this stuff
@@samrei6223 agreed! :)
The best video out here…. I’m looking at 1 parcel that’s 1.5 acres…. I am confused a little, can I build 2 four units using “by right” or would I need to get permission?
@@warrenprice7909 all depends on zoning
@@RehabValuator very good
Thank you so much for this information, really helpful
Glad it was helpful!
@@RehabValuator will this work with a fourplex instead of a duplex since both are still classified as residential?
@@AnthonyBrown-xd2lw what we teach will work for 4-plexes but in our market quads are built by commercial code so cost goes up. In this video, I am building 2 duplexes attached. They're on separate lots so I can build them by residential code but they effectively form 4-plexes if you look at them from the outside.
So are you doing the construction yourself or are you getting a general contractor? What is the best way to not get screwed by a general contractor if I'm solely the investor
I hire a general contractor for most of our projects. The topic of dealing with contractors is a whole separate video or even series. Research people carefully. Get references. Go look at their projects and their work. Start small. Don't give upfront deposits un-necessarily. Get a local attorney to review your contracts. Check DPOR websites on status of their license and any previous complaints (Department of Professional and Occupational Regulation)
Loved the video. One thing I’d like to mention is that you aren’t estimating the value of the land. You are estimating it’s maximum price based on methods of selling property. There is a little bit of a difference but what you are regarding to apply a perfectly to real estate.
Ron. Thanks for your feedback! I think that's the beauty of land, in that it's value can be perceived completely differently by different people depending on intended use. So to me it may be worth 2x what the other guy is willing to pay. But I would also say that "value" and max price that I can get in the market for it are one and the same.
Really great content.. Thank you. Am trying to build duplex/triplex in Raleigh NC. What are your build costs running per SF (with current inflation)?
Great content
Thank you!
Would love to see an update video on your process and what’s been working/not working for you according to your original plan!
Hi Josh. Actually wrapping this project up right now. 4 units already moved in. The remaining 4 are moving in next week. Turned out amazing. Just had professional pics done. I'll try to record a case study of how the finishes and the final #s turned out. Costs ran higher but so did the rents (rents came in much higher actually)
Thanks for the quick response! I’ve heard to estimate costs 25% more than you expect. I’m glad your rents came in higher! I normally use super conservative numbers whenever I crunch my numbers. I’m 23 and am buying my first 3 unit property which should hopefully close in the next 2 months. Very excited to get into the real estate game! Would love to see an update with actual numbers whenever you get around to it. Great work
Where can we find plans for duplexes like yours and how do we know the cost to build?
Plans come from a good local architect. That's who typically creates plans. Cost to build - talk to other local builders/investors in your market. Start there.
Daniil, your case study is so informative! It's an accounting system plus a project management system. You mentioned Scope of Work there, would you mind sharing more details of how to deal with SOW and subcontractors?
SOW/Subs - it is typically done by trade, i.e. the electrician/plumber/hvac will have a rough-in bid and then a finish bid. If you want to keep costs down, do your own shopping and have fixtures/materials on-site. Same for drywall, etc, etc.
I LOVE how simple this is gonna make my first big deal! Definitely going to purchase 🙏
I have a question; You say the first step is getting the land under contract but the PERFECT land for me right now (that I'm going to build duplexes on) is owned by the govt and comes with a few other lots on the block AND a cheap cringy house. They want to see that I've got plans/funds for the project. In this case, I have to use a fha 203k to get the house in order before I can start plopping down duplexes. My biggest concern is that I'll arouse interest in this pretty vacant block while securing the funds.
What should my steps be in this case?
Any way to get the entire thing under contract? What about getting a first right of refusal from the gov't? Your argument in either case can be that you want to keep a cohesive design for this block. You plan to bring a great product to market and want to make sure that the rest of the block gets developed in a similar, high quality fashion. Other ideas are to find $ partners now and take down the rest of the lots.
Wow thank you for this youve given me hope
You're welcome! :)
Hi, I have watched the video a couple times and truly appreciate the time you have taken for these lectures.
Question since each building has 2 duplexes that are attached and each under different land parcels and permits, aren't each of them crossing into each other's property lines ? Are setbacks between the lines an issue?
Looking at buying an acre property that is zoned multifamily but trying to assess logistics on how and what to build to maximize land.
They don't cross over. They sit right on the property line (they're attached at the property line)
Ah I see thank you for the reply. Is it possible to build multiple seperate duplexes without subdividing on a piece of land?
@@eaglehdz1 totally depends on your local zoning
What if the county I live in says that “…(county) has not adopted planning or zoning. And that no occupancy permits or building permits are required in unincorporated areas in the county”. Does that mean that I have to get it zoned first before building and set the zone for that lot? Or I can design a layout for the land as I want? Thanks for all the information it is crazy this was all free!
Sounds like you can do whatever you want in that case :)
Extremely grateful for this resource. One question: When you say 4 duplexes do you mean townhomes or row units? Duplexes are different, usually formated with a seprate suite in the bsmt or third floor. There is no such thing as 2 attached houses. Those would be called semi-detached homes.
Near me there are three types of duplexes. 1 a signal building with two apartments inside. Building was built for the specific purpose of being a duplex. 1 shared entrance and 1 shared basement.
There are home conversions where someone turns a big old house into multiple units.
Another duplex is a twin home side by side built on a single lot. Its close to a townhome/ row home in design but it’s joined by the land. Two homes with 1 purchase price.
@@washablejunk281 The later is called a semi-detached home. Each side, or half, is termed a semi-detached home. Duplexes are 2 units within one home, usually a division of up and down.