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Updated about 1 month ago on . Most recent reply
Time is of the essence - Im currently learning an expensive lesson
Im currently learning this lesson with New Builds that have taken twice as long to complete than anticipated.....
Finishing a Real Estate project ASAP is critical because...
1) Holding Costs add up quickly
- Loan Interest
- Property Taxes
- Insurance
2) Investor Capital
- Our financial projections are dependent on how fast we can turn our investors capital. If we can complete projects faster, we increase IRR and build trust.
3) Market Risk
- The longer it takes to complete a project, the more exposed you are to market fluctuations.
This goes for all things Real Estate - BRRRRs, Flips, New Builds, Rehabs, etc.
Real Estate is a wild ride
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#3 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Ithaca, NY
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#3 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Ithaca, NY
Quote from @Devin James:
Im currently learning this lesson with New Builds that have taken twice as long to complete than anticipated.....
Finishing a Real Estate project ASAP is critical because...
1) Holding Costs add up quickly
- Loan Interest
- Property Taxes
- Insurance
2) Investor Capital
- Our financial projections are dependent on how fast we can turn our investors capital. If we can complete projects faster, we increase IRR and build trust.
3) Market Risk
- The longer it takes to complete a project, the more exposed you are to market fluctuations.
This goes for all things Real Estate - BRRRRs, Flips, New Builds, Rehabs, etc.
Real Estate is a wild ride
I feel your pain, I've had this happen many times where the project is twice as long. Hopefully you have a better streamlined build on the next one.