What’s Your Biggest Challenge with New Construction?

[Robert Ellis]

I’ve been deep in the new construction game, specifically building triplexes, and I’ve seen firsthand how it can be a game-changer for cash flow and equity. But I know a lot of investors hesitate to take the leap.

If you’re thinking about building new—what’s holding you back? Is it financing? Finding land? Dealing with contractors?

Drop your biggest challenge below—let’s talk solutions.

[Brady Morgan]

 @Robert Shoffner:

Good question. My advice is to become familiar with pricing in your market and over time you will learn to recognize a good deal based on location, permitting requirements, and demand dynamics. In general though, I would not pay more than 20% of the finished value on the land. Around 10% and you are in a good spot. Obviously the lower you get that the better. But over 20% and it becomes quite difficult to profit, in my experience.