All Forum Posts by: Steve Olson

@Demetrius Mathis I just sent you a DM. 

@Hector Canales and @Demetrius Mathis thanks for reaching out. Shoot me an email and I'd be happy to discuss.  @Jay Hinrichs does have a point about Jackson though.  Approaching this from a "compared to what" standpoint, it'll be tough to bring product to market at a price that makes a lot of sense.  Believe it or not, this can be a problem in the Houston metro too...but it all depends on which sub market you're in.  Some submarkets are very expensive...some still trade for at or below replacement cost. 

Hi Lisa, great to meet you!  Send me your email address and I'll get you some details.  Happy to setup a time to chat as well. 

Steve

Thanks @Jake Kain.  Just sent you a connection request! 

I'll be in Phoenix on Wednesday, June 24th starting work on a new construction master planned triplex community.  Looking to connect with awesome multi family agents or agents that work with buy and hold investors.  If that's you, I'd love to meet you!  And yes...I have a mask :)

@Kris Reeves

Awesome questions and I'm sorry I'm a little late here.  I have extensive experience in this.  There's some great feedback on the forum here.  

I think you have a lot of the pros and cons.  But I'll add a few pros: year one bonus depreciation on new construction.  Awesome tax break if you're a real estate professional.  And the volume play is correct.  If you can get in with the right subs and be a consistent source of business for them, you'll deliver product lower than what the local market can.

The biggest con is property management.  That has to really be dialed in.  And depending on how you interface with your investors, I may be able to give some pointers specific to your situation.  We've built over 4000 doors in 3 states and have a lot of investors, so we've become pretty good at those conversations.  Not because we're smart...but when you keep banging your head against a brick wall you eventually figure out a better way :) 

@James LePage I'm a little late to the party on this thread, sorry about that.  I have a lot of experience doing build to rent on smaller multi family.  It's my entire business model, infact.  I'd be happy to chat about it sometime if you're still looking into that.  There are a lot of things to watch out for, but it can be a very successful strategy.  Especially in taking advantage of year one bonus depreciation. 

Hi @Harshil Patel, I just saw the thread and am a little late to the game.  My firm builds new fourplex communities right now in UT, TX, and ID. We actually have land under contract in the Phoenix metro now to go vertical on a new fourplex community.  I'll keep everyone here posted on how it goes.  Generally, we've found the west side of the metro to be more friendly to cash flow (land price are more manageable...but there's still growth and demand for rentals).  You might try looking at some options out west.  

Hey, sorry about the wrong answer :)  Yes, they are for sale now.  They are a preconstruction deal.  So you reserve one in advance, close on construction financing (I can talk you through how that works) and then when they're done, you'll refinance out of your construction loan.  So we expect the first units to be complete and for rent sometime next summer.  Hope that helps.  And FYI, your contract is a fixed bid contract so the price can't go up.  If the builder goes beyond the 12 months stipulated in the contract, he owes you a penalty of $500/door per month until the building is complete.

@Cristin Andrews, thanks for the message!  Yes, this is a townhouse project but the plat was drawn in packages of four so you can use the the standard Fannie Mae 1-4 unit conventional loan.  The first batch starts construction in August.  I have a couple left in there.  If you'd like, my associate Jon can meet you at a similar project we have already started in Spring.  That way you can walk through some existing floorplans and get a feel for what an "almost" complete community looks like.