All Forum Posts by: Alvin Taveras

 Thanks @Nick Belsky, What kind of rates have you been seeing?

Hey Guys,

I'm searching for a list of lenders who provide HELOCs. Who have you used recently?

Thanks,

Hello George, 

This depends on a lot of factors. Primarily land costs. We have a lot of new builds in Florida and depending on the market, 2x SFR's can be cheaper in others they are not. Some markets need a higher-end build out to be profitable others going basic on finishes is most effective.

You have to analyze the market you are in and see what the best path to profitability is. It might be best to run numbers on existing and see if by goin with a new build can perform better. From my experience too many investors are going the ground up construction and they don't often calculate all of the costs. We run the numbers of both spec build and ground up and in most cases spec builds make more sense. Let me know if you  have any additional questions. 

@Bette Hochberger, great question!

If you purchased the home from a builder with no cost data proceed as a normal purchase. You would just use the year built and purchased as the current year. If under 700k, this should be easy to do using a company like diycostseg .com. 

If above 700K or if the investor is paying for the construction it requires a lot more data and likely should be done with the partnership of a professional. You are going to want to get a list of all the data you with need for the report ahead of time (soft costs, site costs, building costs, and more). The hard part for a lot of developers is separating out the cost per property, especially if they use mostly their own in-house crew on multiple properties. 

Hope this helps!

@Joshua Ocean

@Scott E. Is correct. No need to pay for any type of mentorship. Most of the info you need can be acquired for free. New construction is such a broad subject. The easiest way to narrow down the best path for you is to decide how passive vs active you want to be. If passive, consuming content and talking to people in the space and getting your money ready may be all you need to do. If active, you may want to figure out how to enter the space and either work for or have a side gig in the space. You learn more from people when you provide them value. 

Let me know if you have any additional questions!

@Chris Seveney, Thanks for sharing!

@John Powell, nailed it on the head. I would also recommend going in a completely different direction. We would recommend avoiding an HOA. your expenses will keep going up, you never have full control of your property and it's difficult to charge a rent premium on the HOA to get a good ROI on the fees. You definitely, want to look at off-market and possibly out-of-state. Interest rates are a challenge in every market. I'd consider looking into builders who are buying down interest rates. I work with builders to sell through their inventory and this has been one of the best methods to keep the volume up. A builder will be more motivated to get you a great deal than a homeowner or fellow investor.

Let me know if I can provide any additional assistance! 

My team is looking for Florida real estate agents to sell our Build 2 Rent inventory. Please let us know if you have experience helping real estate investors identify and purchase investment properties. Let's chat!

@Kyle Crouch

Yes, a lot of our clients are able to purchase using their 1031. The key is to Identify properties that are already under construction and you would close on the property once it's completed.

Doing ground-up construction, where you buy land find the builder, and get a construction loan would be very difficult due to the deadlines of the 1031. 

Hello @Jordan Bean

Yes, I will be in attendance. The event will include a lot of high-level discussions with several major lenders and developers. It should be a great event.

@Kelly Orth

There are a lot of ways to be successful with STR in SWFL. If you are looking for the property to be your retirement home, I would focus on what's most important to you. Chances are you'll have the same taste that your tenants have. Bonita Springs, Fort Myers, Cape Coral & Port Charlotte are all great markets. Wide mix of new and existing inventory.

-Cheers!