Building Futures
New Construction Multi-Family “Equity Bump” Builds Wealth Fast!

New Construction Multi-Family “Equity Bump” Builds Wealth Fast!

The “equity bump” you get when you build new construction multi-family helps you build equity (and wealth) very quickly in the first couple years of ownership.

There are a lot of reasons why building new construction multi-family properties is much more attractive than buying older properties and my new Book:

Don’t Buy Multi-Family! BUILD IT

goes into all of that, but I think a lot of multi family investors are very focused on cash flow numbers and might not understand how important it is to also look at the equity side of the equation.

So let’s look at a quick example from the book: Here we’ll look at the numbers for a new 4 story building with 3 ~ 1700sf 3 bedroom apartments over a smaller commercial storefront unit.

First we’ll look at the cash flow numbers for the finished project and then we’ll look at the equity position and projected sales returns.

This is where we examine the new construction equity bump that in this example helps us increase our equity by 70% after just the first year of operation! 

Get my new book to Learn More!

Build Wealth by Building Your Own Custom House

Build Wealth by Building Your Own Custom House

Build Wealth by Building Your Own Custom House

I’ve been talking about how you’ll save 10-15% or more by building a new custom home rather than buying a new house that a builder built on spec., so here’s how the numbers work:

In Chicago, when a builder sells a house to you that they built, they have to pay about 7% commissions and closing costs right off the top. If they made only a 7% profit for all their investment, that’s 14% that’s already 14% you’d save by building yourself the same house.

Believe me, the builder is shooting for much more than a 7% profit. Think about it, the builder had to purchase the lot, design the house, build it and sell it. For a smaller house in the city, this process will take a year’s time anyway and they’ll have to invest their own cash (probably about 30% of total costs) to get the construction loan.

If they build the same house for you, they don’t need to take out a loan, there is no construction or market risk for them, so they’ll be happy to do it for a smaller profit.

You save the closing costs, a good chunk of the builders profit and the financing is going be cheaper for you because a loan for your primary residence is less risky for the lender than a spec house. you are getting exactly the custom house you want and you get it at wholesale.

If you do it right, you’ll have built yourself instant equity the day you move in. This equity bump is the game changer that builds wealth for you independent of any market appreciation.

Amazon New Book Release:

Don’t Buy a New House! BUILD IT 

What’s Your Return on Your Biggest Investment?

What’s Your Return on Your Biggest Investment?

What’s your return on your biggest investment?

Your home might be your biggest investment, so shouldn’t you be earning a good return on that equity?

Suppose you put a 10 or 20% down payment on your new house. And let’s say you sell in 5 years. If market appreciation happens to be low during that period, it might just cover your commissions and closing costs and now you made 0% return on your equity.

My new book “Don’t Buy a New House! BUILD IT” shows you how you can build your brand new own custom home. And explains that you can save 10-15% or more by having someone build it for you. That’s a lot of equity the day you move in!

Now, suppose instead you put that 10 or 20% down payment toward building your own new custom house. And then you sell in 5 years. And again we assume that appreciation is low during that period and just covers your transaction costs.

If you saved only 10% by building yourself, That’s a 100% return on your 10% down payment, or a 50% return iof you had a 20% down payment. Divide that by 5 years, you’ve made a 10 or 20% annual return on your equity! It’s likely, these numbers will be quite a bit higher, because a new house is very likely to appreciate more in those first 5 years than an older house.

Now we know most people are just not going to want to put in the effort to build their own new custom house. The idea is just outside of their comfort zone.

Yet those same people will go out right now and buy and older home that needs work, And it’s definitely going to need more work over the years they own it! Then they’ll be lucky if they break even when they sell. If they get really lucky, it will appreciate more and they’ll do a bit better.

But instead of starting at zero and hoping for appreciation, Wouldn’t it make more sense to start with a better, brand new house and with a substantial return locked in?

You miss a lot of opportunities by staying in your comfort zone!

My new book: Don’t Buy a New House! BUILD IT Might help you stretch that comfort zone a bit. It will show you how the numbers work and how to find your site and find the people to help you design, spec and build.

Grab a copy on Amazon and learn how it’s done. https://www.amazon.com/gp/product/B09PSFMC6Z/

 

Don’t Buy “Value Add” Deals. Build New Instead!

Don’t Buy “Value Add” Deals. Build New Instead!

With higher inflation numbers, investing in multi-family income properties makes more sense than ever. The problem is that finding a property with good returns is like finding a unicorn.

There is a lot of competition for quality properties and prices are very high, which of course means that returns are very low (in other words, low cap rates).

Properties that are cheaper to buy normally need quite a bit of construction work to re-position them in the market for higher rents.

Most of the big syndicators are buying properties like these, ‘value add” deals that have room for them and their investors to make money.

But if you look around in Chicago and other growing markets, big developers are putting up offices, apartments and condos as fast as they can right now.

Why? Rates are low, rents are at all time highs and demand for new construction units is very high. Now is the time to build new construction!

Why would you want to compete to over pay for an older building and then do a bunch of construction work rehabbing it, only to achieve rents much lower than new construction.

My new book: Don’t Buy Multi Family! BUILD IT will show you how the numbers work and how you can find opportunities to get started building new construction multi-family yourself.

Grab a copy on Amazon and learn how it’s done. https://www.amazon.com/gp/product/B09PSFMC6Z/ 

2 New Books!?

2 New Books!?

Probably releasing 2 new books in the same month is not the best strategy, but hey, what can I say!

The books are really written for 2 different audiences.

Don’t Buy a New House! BUILD IT

Is written for people who are interested in buying a new house, but are having trouble finding what they want. I wanted to show them that right now is actually a great opportunity for them to take advantage of the best market I’ve ever seen to build their own custom house and how they’ll be creating wealth in the process.

My other book:

Don’t Buy Multi-Family! BUILD IT

Was just released. Is written for investors interested in multi-family income properties who are finding that none of the properties that are on the market now make sense. There is more and more competition to buy properties that are really marginal investments at best.

Meanwhile, developers are putting up new apartment towers, offices and condos as fast as they can build them.

I’ve been in real estate and development for 35 years now and I’ve never seen a better time for investors to build new construction investment properties.

This book will show you can take advantage of it. Here’s a link to get the book on Amazon:

https://www.amazon.com/gp/product/B09PSFMC6Z/

If you subscribe to follow this channel, in the coming days and weeks, I’ll be posting videos with more detailed information and examples from the books.

If you have more specific questions, you can reply here, or refer to our web site http://ld2development.com

 

New Book – Don t Buy Multi Family! BUILD IT

New Book – Don t Buy Multi Family! BUILD IT

Here in Chicago, we see big developers putting up new high rise apartments towers, condos and office buildings like crazy right now.

There’s incredible pent up demand for new construction and when you combine that with historically low interest rates, you have a perfect climate to build new projects.

My new book Don’t Buy Multi-Family! BUILD IT tells investors how they can join the party and why now is the best time ever to do it!

I see so many people trying to invest in multi family income property right now, only to find that they are just not interested in any of the properties that are on the market. There is more and more competition to buy properties that are really marginal investments at best.

I’ve been in real estate and development for 35 years now and I’ve never seen a better time for investors to build new construction investment properties.

This book will show you how to do it. There’s a link below to get the book on Amazon.

https://www.amazon.com/gp/product/B09PSFMC6Z/

And If you’re an ebook reader, there’s even a special $1.99 intro price on the ebook right now!

If you subscribe to follow this channel, In the coming days and weeks, I’ll be posting videos with more detailed information and examples from the book to show you how to find and recognize a great investment deal when you see one!

If you have more specific questions, you can reply here, or refer to our web site http://ld2development.com

 

Compare – Buy New House vs Buy Re-Sale vs Build Custom House

Compare – Buy New House vs Buy Re-Sale vs Build Custom House

From the new book release:

Don’t Buy a New House! BUILD IT,

We’ll compare investing in Purchasing a New Construction House from a builder vs Buying a Newer Re-Sale House vs Building Your Own Custom Home.

You can adjust the parameters as you like, but I think you’ll be surprised to see how the numbers will work out for you when you sell your new home a few years down the line.

You can find:

Don’t Buy a New House! BUILD IT

on Amazon: https://www.amazon.com/author/rogerluri

There’s a special price on the ebook this month. It’s a short read, but will give you a lot of great information and an eye opening perspective on building your own home.

Please post a review on Amazon. Your feedback is really appreciated.

If you have questions or want more info you can also check out: http://ld2development.com/custom-homes/

Save 10-15% on Your New House!

Save 10-15% on Your New House!

My new book was just released, it’s called:

Don’t Buy a New House, BUILD IT.

Yesterday I said that this is the best time I’ve ever seen to build your own custom house and I mentioned that you’ll save 10-15% or more compared to buying a new house that a builder built on spec.

Why? Let’s look at how the numbers work. Suppose you are able to find & buy a new construction house that a builder just built. and let’s say you purchase it for $1.3M.

In order to build that house, the builder had to purchase the lot (probably a tear down) and put up maybe about $300,000 of their own cash to get the construction loan to build it. The builder’s cash has been tied up for at least a year til the house is sold.

At closing, the builder pays commissions and closing costs of about 7% right off the top. That’s about $91,000. And to keep it simple, let’s suppose that the builder makes a profit of 7% on the sale, that’s another $91,000.

Now 7% of sales is not a very big margin considering all the work that goes into it. The builder would certainly be targeting a profit closer to twice that. But let’s just say the builder makes only a 7% profit. By you building that same house yourself, you would save the 7% closing costs and 7% profits that are built into the builder’s selling price.

That’s 14% savings for you right off the top! In this example, that’s $182,000 of instant equity the day you move in.

You might even get the same builder to build it for you. This is a win/win for both of you. They can make money building for you at the same time they can invest their money into building another spec house.

In the book, I explain more about how the whole process works. It pays to understand the numbers! There is a link below to get the book on Amazon.

https://www.amazon.com/gp/product/B09PRTVBMH/

It’s a quick read, but gives you a lot of insight and all the steps to get started.

If you read the book, I’d appreciate it if you could review it on Amazon. Your feedback would really be helpful.

If you follow or subscribe to this channel, I’ll be going into more or the specifics of how it all works.

Let me know if you have questions.

http://ld2development.com/custom-homes/

Thanks

Don’t Buy a New House! BUILD IT

Don’t Buy a New House! BUILD IT

Hey, After some last minute revisions, my new book was just released!

It’s called:

Don’t Buy a New House! BUILD IT

You know, the last couple of years, I’ve seen so many people struggling to find a new house , and I wanted to show them how they can build their own custom house. In fact, a couple days ago, i shared a post from Bob Villa talking about why you might want to build your own NEW house right now. https://www.bobvila.com/articles/pros-and-cons-of-building-a-house/

I know a lot of people may have never even considered the possibility of building themselves, but Bob definitely has the right idea!

I built my own first new home about 25 years ago now. and looking back, it was really a life changing experience for me, so that’s what inspired me to write this book.

I’ve never seen a better time for someone to build their own custom house. You get exactly the house you want and if you follow the method I talk about in the book, it’ll be a really great experience for you and you’ll save 10-15% or more compared to what you’d pay for the same house that a builder builds and sells on spec.

So on a million dollar house, that’s $100 – $150 thousand dollars!

Of course it’s going to take some work on your part, but hey, that’s a lot of equity to start out with!

And It’s really not that hard There are a lot of great professionals out there who will be happy to help you do it, That’s what they get paid for!

So If this sounds like something that you might want to learn more about, Grab a copy of the book on Amazon. Because it was just released, the kindle version is starting at only $.99 just for this month. https://www.amazon.com/kindle-dbs/entity/author/B09PTK1XCH?_encoding=UTF8&node=283155&offset=0&pageSize=12&searchAlias=stripbooks&sort=author-sidecar-rank&page=1&langFilter=default#formatSelectorHeader

It’s not a big book, it’s a short read, but there’s a lot of great information.

If you read the book, I’d really appreciate it if you could take a minute to leave a review on Amazon. It will really help me to get your feedback.

In the coming weeks, I’ll be talking about more specifics from the book like lending programs, finding your site and the whole construction process. so please follow or subscribe to this channel so we can keep you in the loop.

And if there is something that you’d like me to talk about in more detail, just let me know.

 

Hybrid Work Brings New Office Paradigm

Hybrid Work Brings New Office Paradigm

Hybrid work is the buzz phrase right now in HR and recruiting. And of course, a lot of us are spending time working from home now but to employees, hybrid means they want flexibility in their schedule. Rather than a fixed schedule where it’s like, okay on these days you come into the office and these days you work from home, they want to be able to come and go when they want. Hiring talented people is very challenging right now in almost every industry. Much like in real estate, we have a sellers market for job seekers and employers are finding that they need to step up their game in order to attract top talent and that means to provide the right work environment. People in the workforce now are expecting to be treated like adults who are capable of making good decisions about when they need to be in the office and when they can get more done at home or from another remote location. Top companies, those are the ones that win awards for best places to work and things like that, they realize that a good hire is going to thrive with this flexibility and that that’s the person that they want to hire for the growth of their company. If you’re interested in investing or building, developing for yourself, even if it’s in a small way, it’s really important to understand the deeper trends that are driving the market. And just like in trading stocks or anything else, profits are made by riding that wave of the trend and that’s the way you do it.