He also said that those that understand this, would be living off of those that don't.

Can someone guide me through this process and help me understand what’s going on here?

New construction offers a unique blend of potential high returns and control over the investment, making it an attractive option for those looking to diversify their portfolios.The Advantages of New Construction InvestmentCustomization and Control: New construction projects offer investors the chance to tailor properties to meet current market demands, ensuring higher occupancy rates and returns.Energy Efficiency and Sustainability: Modern constructions come with the latest in energy-saving technologies and sustainable materials, appealing to a growing eco-conscious tenant base.Lower Maintenance Costs: With everything brand new, the initial years following a new construction project see significantly lower maintenance costs compared to older properties.Tax Incentives: Many regions offer tax benefits for new construction projects, especially those that meet certain environmental or economic development criteria.How to Approach New Construction InvestmentEmulating Buffett's investment strategy involves careful market research, understanding local real estate dynamics, and potentially partnering with experienced developers.

I would highly recommend full background checks and ensure you understand the tenant/landlord laws in regards to approving and denying applications.  

I find that most towns just want owners to rent responsibly, which I can understand.

Happy to point you in the right direction, I've worked with different types of lenders and you just have to find someone that understands your scenario.

Probably best to go local on this for someone to be on the ground and really understand the property and project from the lending side, rather than a national platform

If you are selling $100,000 homes I could understand agents holding on more.

@LaShanti Penn one of the biggest mistakes owners make is not understanding the different risks with different Property Classes.They often look at cheaper properties that are Class C, but expect Class A results.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.When investing in areas they don’t really know, investors should research the different property Class submarkets.

Definitely look up local rent control laws and understand what you are getting into.