New Construction Builder can make the leap

[Merle Sauvola]

My wife and I have a long term goal to own apartment buildings. Specifically build to hold. Obviously, I know we need to start smaller.

I own a couple construction companies. 1 a commercial concrete contracting business, and 2 a general contracting business (99% focused on new home builds). This has created a problem for me when it comes into getting into rentals.

I cannot get myself to buy a rental. Every time I see one, I talk myself out of it by thinking or saying “I could build something better than that where everything is new (roof, HVAC, plumbing). BUT. I never end up doing it.

Every time I find a piece of property for development, I go into it with build to sell in mind. That company is growing fast and needs property in front of it to keep it fed. So I’m biting my real estate hold side of things.

Not to mention time. We’re very busy. Has anyone else ran into this? What are some thoughts?

[Will Fraser]

Hi @Merle Sauvola, you need to listen to your gut here, then tell it to "sit down and shut up."

Listen - DO build investment properties for yourself.  You have THE single greatest asset I can think of right now -- predicable supply of labor and volume to help keep costs (somewhat) lower in the supplies.  When you buy or build new EVERYTHING is at year 1 of its life cycle.  Build it, rent it, own it for 15-30 years, then sell it!  That's a masterful and amazing thing to be able to do, and most people will never do it because they don't have the knowledge, a contractor they trust, or a dozen other excuses they'll make.

"Sit down and shut up" - Once your gut has reminded you that BUILDING IS BETTER you need to check it at the door and stop listening to the fear part that says you don't have time.  Of course you do.  You ALWAYS make time for what is important, and your FUTURE is exceedingly important.  The whirlwind of business will always tell you to prioritize today over tomorrow and we have to keep that in check.  Build a house this year as an investment.  Tell everyone you know who understands investing what you're doing and ask them to ask you about it along the way.  

Then build 2 next year.