Why doesnt more people do new builds than just flipping?

[Mana Silva]

Aloha everyone, Im an investor in Hawaii and I build homes from the ground up. Just out of curiosity, why doesnt more people do new builds in the Real Investing World? Majority of the investors that I come across in Hawaii have never done a new build or they only flip houses. Its just a thought. For me, when I do a new build there are no unknowns as far as the construction goes. Everything is a step by step system and there hasn't been any unknown surprise, if anything maybe only some scheduling rearranging, but nothing major like flips. What are your guy's thoughts on this?

[Alex Franks]

Originally posted by @Mana Silva:

Aloha everyone, Im an investor in Hawaii and I build homes from the ground up. Just out of curiosity, why doesnt more people do new builds in the Real Investing World? Majority of the investors that I come across in Hawaii have never done a new build or they only flip houses. Its just a thought. For me, when I do a new build there are no unknowns as far as the construction goes. Everything is a step by step system and there hasn't been any unknown surprise, if anything maybe only some scheduling rearranging, but nothing major like flips. What are your guy's thoughts on this?

My answers are never as detailed as Jay Hinrichs but I believe it is more or less folks don't know.

All the resellers or gurus, not one of them is preaching or teaching new construction( that I now of ). I rather keep it quiet and just keep in building. Watching other folks  telling them you are correct low end deals are the way to go.

So most of the folks here and in the local meeting are failrly new. I see it daily here as they flock to the meeting then jump in the low end deals. The truth is the market tells us what to do and why. Right now for us in NC and SC it is cheaper to build then buy. Jay is correct capital is needed and most folks don't have that.

We are building both retail and turn key rentals here in both markets.

Enjoyed your post though

Alex

Flips, rehabs are not even in my conversation any more unless it is an apartment building.