All Forum Posts by: Todd Anderson

I would be happy to connect. I have been working with investors for more than a year to help them find new construction investment properties. We work with a number of builders to move there properties off market before they're complete. Most of the SFR, duplex, and quads are in the workforse category. We are staring to work with larger projects that will all be build to rent. I would love to hear more about your project

Natasha,  Sorry this is happening to you!  it happens far too often to far to many people.  I talk with investors every day who chose a challenging way to invest in new construction.  I have tried to solve for this problem.

I recently made contact with an  from the area through BP.  I have not used him personally but here is his info 

https://www.biggerpockets.com/users/johnm3034

Best of luck moving forward.  

They look like great homes and they are in an excellent market.  Good luck!

 I totally agree Adam.  I would consider 12-18 months short term in a buy and hold investment.  I also agree that there will be more coming to the market this year, witch is not good for the builders, and will create a buyers market.  That's why I mentioned the builders that we work with are offering such good incentives.  New permit applications have now dropped.  Once the market does stabilize, we should again see appreciation.  

I would agree with the buy and hold mindset.  The one thing that myself, and  the investors that I work with have found is it helps to keep those buy and hold properties fresh.

I am working with a lot of investors that are turning their older buy and hold into New Construction, Build to Rent. If you can move the investment of 1-2 SFR into a New Construction Quad, your repair costs go down and cashflow is there day one. You get to own the property for the best years of its life.

The other things that the investors I work with find is with New Construction you can use builder incentives to get a rate in the low 4%.   At this rate that cashflow is there and you can invest in areas that the appreciation is obvious.  

Congrats on the portfolio.  it sounds like you are in a healthy position.  

Most of the investors I work with like to keep some leverage on their properties. That way your tenant pays your mortgage.  The vast majority are using their equity to increase their portfolio with small multi family.  We are seeing great rates, Low 4% on the New Construction Quads that some of our builders are completing.  

Either way your thoughts are solid buy for cashflow, but het in the way of obious appreciation.

Good luck, connect if I can be of more help.  

Sabuj,  All the investors that I work with have the same opinion considering Cape Coral vs Lehigh.  Cape Coral will have the potential for better appreciation.  

In the last 8 months the builders I work with in  Cape Coral have kept building and inventory of New Construction is up.  As has been said before rents have flattened in SWFL because of this.  This inventory will be absorbed but it may take a short time.  We have builders now that are getting aggressive in their Incentives.  We are seeing buy downs to low 4% and now we are even seeing some UNDER 4%. 

I do sill like the Lehigh area for Duplex.  It is a much more Blue Collar area and the duplexes acquired by the investors that I have worked with, are doing well.  

I talk with other investors who have had problems with their builder's every day.  We encourage the investors that we work with to only look at houses that are 1-3 months from completion.  This work great for 1031 investments and takes away the builder using the investors money to build the project.

Every investor has their own Investing goals. there is no one best investment strategy that is right for everyone. I have invested in most every category over 30 years and I have found they all work, if done right. The investors that I am working with now are mostly in doing their investment in SFR or small multi fam . They are investing for cashflow in markets were the appreciation in obvious. They are refinancing in 1-4 years and reinvesting in the next property. This is a steady way to invest and grow wealth, and it can be done very passively. The biggest thing I have learned is to pick your market intelegently. In today's world with the tools we have you don't have to only invest where you live.

Satya,

Make sure you do your due diligence on the builder.  It sounds like an interesting concept.  But...  I talk with investors everyday that have purchased land and signed with builders just to find that they still have an empty lot, or worse a started building and the builder is non responsive.  

We have found a different way that my investors pursue.  We work with builders to offer their New Construction Investment property off market at pre-negotiated investor pricing and incentives.  These properties are all within 1-3 months of completion and the investor does not close until the CO is revived.  We help with management and boots on the ground.  At this point the investor owns the property and has multiple avenues of exit.  

Best of luck, I will look into this investment, Im always looking for the best way.  

Mike,

I am in SW Florida and work in both the LTR and STR market. As stated before there are some good areas that are showing steady growth in this market. As mentioned, one of the faster growing areas is Cape Coral. I happen to have 3 STRs that an investor that I am working with is planning on selling. Some areas in SW Florida are showing signs of over saturation, but this investor is showing great revenue and over 90% occupancy.

Feel free to reach out directly with any other questions.