Newbie Builder Needs Advice

[Terry Portier]

Hi, I am a general paper contractor & new owner of a new(6 mos) somewhat successful construction LLC that rehabs hail damaged roofs, guttering, siding. I have 2 yrs combined experience working for others too. I have my contractors ready to go, and am plugged into my areas resources.

I'm wanting to diversify my portfolio since alot of what I do is dependent on bad weather. I'm looking at putting what I have thus far on auto-pilot run by others so I can do more REI.

I'm young, 22, about to get married and looking for my first home. One thought is to build my first duplex or multiplex, live in one side, rent the other, gaining experience this way so if it goes wrong it will be my resident. I'm weighing that to buying a rehab, looking at the numbers to see what makes sense and continuing to read BP. Also working on getting my GC license.

Any advice be appreciated.

[Karen Margrave]

Terry P. you wrote, "new owner of a new(6 mos) somewhat successful construction LLC. I' looking at putting what I have thus far on auto-pilot run by others so I can do more REI.

Terry, I think the best route would be to stick to the business you have, and build it into a 'successful' construction business, which will give you income, project managment experience, and credibility. While you are doing that, start getting up to speed on real estate investment opportunities.

The fact that you purchased a business that is only 6 months old and think you can put it on 'auto pilot' says a lot about your understanding of business. Businesses don't run on auto pilot, they take commited owners staying on top of them daily (at least until they are well established). Any lender looking at such behavior would question your ability to stick it out with a project, and probably be reluctant to loan you money for your real estate.

As J Scott mentioned both things can dovetail together, and help you build a strong foundation for your future business. Good luck.