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Updated about 5 years ago on . Most recent reply
Building or buying multifamily homes when market is up.
Hello everybody !
What type of investment do you recommend when market is up and you can not find properties who can follow the 1 % rule ?
I am thinking to build rather than buy and like this profits can be higher ...
Did anybody had this dilema ? What challenges did you faced ?
Ps : The market where I invest is Bucharest - Romania
Many thx !
Gabriel
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#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
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#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
Originally posted by @Gabriel Daneliuc:
@Greg Dickerson Thank you for your comments ...You are right !
The risk I see on building is that I have no experience and this could affect the final result of the investment .
You can mitigate the development risk by hiring a development consultant and experienced team. It does take deep pockets as you will generally have to put more equity up, carry the interest cost during construction and lease up and you have no income coming in until the project is complete.