New construction is a big ask for new investors, but it is true that this can be a way to get a good deal without having to find a resale, if you GC the build yourself to save on the GC fee. I am planning on starting a channel soon to help investors learn how to GC a build. I believe that if more people are able to GC home builds, it will help alleviate the shortage of new construction in the long run. Problem is, there is a lot that someone needs to know before they become a GC, and not a lot of resources for that education outside of actually working in the industry for many years.
I love bigger pockets but there are only a few episodes on new construction. Makes me wonder if my strategy is not realistic. I plan on refinancing a duplex I have been working on when its complete and stripping 80% of the equity out of it. Ill only have approximately 200,000 invested into it but will be worth 300,000 (In midwest). Still 80% equity will be 240,000 that I will then put in a 4plex. Repeat, multiply
@@tylerbrobst2716 We are basically doing the same thing. Assuming your numbers are accurate, it makes sense to me. I think a lot of people are intimidated by the idea of new construction and probably feel it is a good way to get ripped off on a house, but I think that mostly comes from a lack of knowledge. I am hoping to help with that at least a little bit.
The "due on sale" clause scares the crap out of me. In my mind, I have eliminated seller financing as a strategy... yet investors are still doing it (or at least talking about doing it). Am I missing something? Is there a way to mitigate that risk?
A Nurse here & is true, I’m all about working in the north [where we get paid more hourly]and investing in the South, where the houses are cheaper. I’m saving for a second house,I want to have an 6 months Emergency funds for reserve, & My focus is mid term rentals. how much money should I put down ?
i am kind of glad you guys said this. is a level of negative monthly cashflow the ideal situation, no. but as you kind of pointed out. if a person actually has a large amount of disposable income it is not the worse scenario, considering you are still getting principle paydown. and there is room for some level of appreciation.
New construction is a big ask for new investors, but it is true that this can be a way to get a good deal without having to find a resale, if you GC the build yourself to save on the GC fee. I am planning on starting a channel soon to help investors learn how to GC a build. I believe that if more people are able to GC home builds, it will help alleviate the shortage of new construction in the long run. Problem is, there is a lot that someone needs to know before they become a GC, and not a lot of resources for that education outside of actually working in the industry for many years.
Sounds awesome - I just subscribed in anticipation
I love bigger pockets but there are only a few episodes on new construction. Makes me wonder if my strategy is not realistic. I plan on refinancing a duplex I have been working on when its complete and stripping 80% of the equity out of it. Ill only have approximately 200,000 invested into it but will be worth 300,000 (In midwest). Still 80% equity will be 240,000 that I will then put in a 4plex. Repeat, multiply
@@tylerbrobst2716 We are basically doing the same thing. Assuming your numbers are accurate, it makes sense to me. I think a lot of people are intimidated by the idea of new construction and probably feel it is a good way to get ripped off on a house, but I think that mostly comes from a lack of knowledge. I am hoping to help with that at least a little bit.
The "due on sale" clause scares the crap out of me. In my mind, I have eliminated seller financing as a strategy... yet investors are still doing it (or at least talking about doing it). Am I missing something? Is there a way to mitigate that risk?
Over 4 is considered commercial property. At least 20% down is required. Seller financing is also hard to find.
David, you are rock-solid bro. Rob too, but I really connected with Rob's views.
I'm in the process of finding a BRRRRimary residence... but also a live-in flip. Can you give that a name?
Is it better to buy the land then build, or do land and build in an all in one? What are the benefits?
Thanks!
I thought STR was banned in Hawaii unless you’re grandfathered in?
It depends on which island. Most are strict on and have specific areas where STRs are allowed.
@@stephaniepatterson3966 ok. When I checked Oahu and the big island it was a no go.
Great insights as always!!
A Nurse here & is true, I’m all about working in the north [where we get paid more hourly]and investing in the South, where the houses are cheaper. I’m saving for a second house,I want to have an 6 months Emergency funds for reserve, & My focus is mid term rentals. how much money should I put down ?
i am kind of glad you guys said this. is a level of negative monthly cashflow the ideal situation, no. but as you kind of pointed out. if a person actually has a large amount of disposable income it is not the worse scenario, considering you are still getting principle paydown. and there is room for some level of appreciation.
House Brrrracking
The common theme in society today!!!! (And for far too long) buying too much house just bc you qualify for that amount!👎🏽🥴🤨