All Forum Posts by: Ian Ray

@Cory Smith Insofar as the multifamily builds go, what returns I am looking for will be based strictly upon that build, and the market that I am going into.  For example, if you reference this article, there are things going on in certain markets that make me feel like with the proper application of the technology, and with an eye towards aesthetics, alternative building methods don't have to remain that way for everyone. If you invest in the medium and understand the scale you need to reach in order to make it worth the while.  When I speak of using alternative building methods, I don't really feel compelled to maintain the current aesthetic level or identity associated with the concept.

This is the main reason I want to go with the cookie cutter approach to building these.  It takes some of the guesswork out, as well as the wacky pricing.  Most importantly, I do not mind if it doesn't go mainstream.  I am not positioning myself to sell these units unless its sheer stupidity not to.  I am aiming squarely at the middle of the market, in markets where the novelty is irrelevant, but the quality and affordability of the home is. 

A place that had some really bad flooding as of late comes to mind when trying to market rapidly built, sturdy homes

Wallace Crawford of Mather Realty.  He goes above and beyond for his clients. Would you like me to forward his contact information to you?

I have been noticing the competition stepping up in mainstream investing as of late. Well, at least in regards to preexisting inventory.  As a new investor, I can honestly say my first year in the game has been easier by far than this year in regards to finding deals that meet my numbers.  Now, I understand that markets ebb and flow and that is life, but a thought came to me: why sit in a traffic jam when I can take a new lane to the same destination?

Because of this, I have been thoroughly investigating shipping container construction.  During this investigation, I have yet to see a firm that targets the middle of the market with this housing type. I see designs that cater to the high end, and designs that cater to the off grid minimalist. 

Reading through some of the posts on the subject in the other threads, I have seen some people state that you can pull off stick built homes for the same cost of construction, but with the current inventory of containers, I am having a very hard time seeing how that is.  Now it is entirely possible that I am missing something as far as falling prices on stick built construction in certain areas, as I do not know everything. But, by comparison, I have had a design estimated at 25k for cost of construction, yet it will yield 2560sqft.  This is including MEP work being completed, but no upgraded finishes at all. 

Personally, based on my research, I feel like if you are fully aware of the permitting and inspection requirements in your market of choice, the costs of getting up and running will be taken care of very rapidly if you are planning to pursue shipping container construction as a model.  I plan to take the cookie cutter approach, having about 4 or 5 engineered plans, a dedicated team of contractors trained and experienced in this kind of construction that I work with exclusively, as well as an engineering team in place to consult with when needed. 

I plan to use this model for my multifamily investments as well, as my way to enter the space.  I have previously posted about my intentions in that niche, which I still hold.  But after speaking to mentors and brokers, I realize that I need to strengthen my background and experience before I am taken seriously when I ask for a seat at the table.  To this end, I will have multifamily designs that  I will execute in specific markets as a proof of concept, for both the viability of construction, as well as my ability to manage and maintain a multifamily asset. 

Regardless of which route I take (SFH or Multi), I plan to base my numbers off of the returns I would need to sustain a buy and hold investment. These projects will not be flips. If I do sell them, it will be a turnkey solution, or because the demand is there and it just makes sense to do so. I just can't pass up the chance to build something brand new for the cost of what some of the renovations to pre existing inventory I have acquired needed.

I am confident that once I am able to scale, this will be a very lucrative strategy when applied with discipline and forethought.

As always, I welcome your input, BP!

See you there!

@Leo K., Thanks for the tip on TriStar Bank! I have been searching for that information

I like the Fort Worth Area, as well as Charlotte, or RDU in North Carolina. Just my 2 cents

@Maggie Connelly welcome to the area. Be sure to get plugged into some of the meet ups in the area.

@Scott Ryne,  The market is fairly stale.  There is a lot of stuff coming available, but you have to be super carefull about what you pick up.  It is all in need of extensive rehab work if you want to put things on the retail market, but only requires moderate rehab for a buy and hold.  I have a few duplexes in the better areas that are great for me because they stay occupied due to the level of work I put in them.  So it really is a case by case basis in dayton.  But again, I do like being near schools.  That submarket works in almost any area. 

@Chase Speights  I invest in Dayton Ohio, several Tennessee submarkets.  I am also starting to move into the RDU market, as well as Columbus Ohio.  I like things near universities, personally.  I like the metro area of Charlotte a lot as well.  Right on the interior of the 485 loop.

Abraham Steele Jones is a solid guy.

https://www.biggerpockets.com/users/AbrahamS