Alaska investor

[Kevin Stearns]

Hello BP world. I am a newer investor. I am very thankful to have found this resource and appreciate any feedback from experienced successful investors. It's hard to believe we have made it as far as we have without it. My wife and I are planning our next move and our future goals. It is very exciting! We are about to close on our 2nd and 3rd properties. All of our properties will be 4 plexes on conventional mortgages. I am currently working on a oil drilling rig (I am over hard labor) and want to take advantage of as many conventional loans as possible before I quit this fall. I plan on starting up a general contracting business again to generate cash by working for ourselves on flips and the BRRRR strategy. I am going to be hands on at first until I build a solid construction team and then transition into a management role. My wife and I are also planning on getting our real estate liscences soon. Does anyone have any experience or advice pertinent to any of our plans. We would use a construction loan and build a 4plex for our first new build. We have the plans and land ready to go. We are not sure whether to build new or find a good distressed multi family and use the BRRRR method. Thanks again.

[Scott Sewell]

Welcome to the BP universe @Kevin Stearns,

Be sure to follow ALL the suggestions above. This is the best resource for real estate education on the planet! (IMHO)

As to (one of) your questions, wether to build or buy: before building you might want to back into the numbers/analysis. Find out first how much a new apartment like you want to build, rents for in the area. Of course you could charge a premium for new construction, but be conservative in your estimates. Then times that by 4 (4-plex) apply a 50% rule and your 'take out' financing and see if what's left is a decent ROI (20%?)

Make sure you pay yourself (or company) in this equation, or the numbers just won't make sense. In Anchorage, building new doesn't compete with rehabbing, given a decent property to start with.

Again welcome,

Good luck, and great investing to all!

Scott