New Builds- Construction

[Vincent DeLucia]

Hello BP Family,

Just wondering your thoughts on New Builds as an investment- whether it be a build and sell or build and hold long term as a rental. Does anyone have any experience doing this? What is the process like? I own a rental down in Florida and have done some rehab work on properties but not a true new build.

Any advice or information that would be good to learn from (experience, books, etc). Thanks!

[Ty Coutts]

Investing in New Builds: Considerations and Process

New Build Investment Options:

Build and Sell (Fix and Flip):

Pros: Potential for high profits with modern appeal.

Cons: Requires significant upfront investment and market risks.

Build and Hold (Long-term Rental):

Pros: Attracts quality tenants, potential for higher rental income.

Cons: High initial costs, market fluctuations.

Process Overview:

Market Research: Identify high-demand areas.

Land Acquisition: Purchase suitable land.

Design and Planning: Work with architects and obtain permits.

Construction: Oversee build quality and manage costs.

Marketing (Fix and Flip): Highlight new features to attract buyers.

Tenant Management (Rental): Implement thorough screening processes.

Advice:

Educate Yourself: Understand local regulations and market dynamics.

Risk Management: Prepare for potential delays and cost overruns.

If you have any other questions/just want to discuss feel free to reach out to me directly!