All Forum Posts by: Devin James

Appreciate you sharing your numbers, always interesting to see what costs are in other parts of the country. I actually just did a live stream yesterday on my channel (youtube.com/@brady_morgan) that went over this exactly. In particular the part where I talk about market, is important. It looks like you are doing an affordable build based on the cost but hard to say since you didnt provide info on the build itself such as square footage and finishes. Also, you didnt mention any financing costs, was this built with cash or do you roll that into your cost of construction?

Ding ding! Were there any "intangible" value created through this build that wouldn't be reflected in the numbers? An example would be that you kept your crew working rather than laying them off. Another would be you are building other units next door/nearby and you can chalk this build up to the "learning curve".

I didn't see a CFO on GLH or GLC's website, but I'm sure you have someone doing this type of financial analysis for your developments? Most CFO clients that I work with that are new construction/home builders usually target a 20%-25% gross margin as they usually have to deliver high teen returns to their investors.

 Hey @Devin James. Did you do a variance analysis for this new build?

There are several lenders who offer low/no closing cost options for first time homebuyers. Some costs are eliminated (such as 'soft charges') while others are accounted for in the interest rate.  And, it's amazing how many closing costs are junk fees that we as investors need to pushback on paying for ourselves and our clients. There simply are too many people attempted to get their hands in our pockets.  The industry is long overdue for an overhaul.  

 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.

we ran into this in FLA  a few years back when I had 4 starts and I exited that market..

permits  sub base all pretty tough for someone who is not there and already knows the systems hands down and has a devoted loyal sub base.. thats the key in my mind.

@Devin James

I think another question you need to consider is “why do you want to be wealthy?”

Some people like to have freedom to do what they want, some like to buy fancy cars, some don’t want to have to work for someone else, some want to prove they can go from nothing to something, some are just competitive. There are numerous reasons why people want to be wealthy.

I think your “why” is an important factor to consider when asking was building your wealth worth it.

I wouldn’t call myself “wealthy” by comparison standards, but I’ve made a lot of progress on net worth over the last 5 years. It’s taken a lot of work, and a lot of lessons learned. It hasn’t been easy, that’s for sure.

I’ve sacrificed a lot of time with my family, my overall physical fitness has diminished as I no longer work out 6 days a week, and my social life is pretty much nonexistent.

So, trust me, I’ve had multiple times that I’ve asked, “why am I doing this?” At times it seemed logical to just cash in what I had built or scale back and take away the stress but then I remember my “why”.

Having a strong “why” and purpose to what I’m doing keeps everything into perspective. My “why” makes the pursuit of wealth worth the sacrifice.