Welcome to our channel! We do 2 things: Dynamic Real Estate Software and top notch investing education, especially for real estate developers.
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On our channel you'll also find some DEEP investing content, lately focused on Real Estate Development. Daniil Kleyman is a 1st gen immigrant who has built a $60m+ real estate portfolio over the last 14+ years with another $100m of projects in the pipeline. Check out our training for in the trenches insider knowledge you won't get elsewhere.
New sub, love your videos super informative! Im finishing a new construction here in CA and starting another build in my backyard in San Diego but contractors are a nightmare to come by around here. I want to develop out of state for a million reasons, mainly faster permitting, looser zoning and lower costs. Curious how you find your contractors? I typically drive around and talk to subs on jobs in my area but with investing out of state I wont be able to do that, or atleast as easily
To hell with this guy build a duplex and charge the same amount as if it were a house….it should be illegal to own more than 1 residential property for business. You get to rent out 1, if you rich and want to own a bunch of mansions to travel to cool, but only 1 to rent out
Is there a way to have an LTV that is lower than LTC? Soundd mathematically impossible. At least not while being profitable or reasonable. I clearly want ALL of my construction costs covered. Can i get an LTV loan without an LTC taken into consideration?
If LTV is less than LTC then there's no point building. It doesn't make sense. I am sure there are some lenders out there that only look at LTV without considering cost. Not ones we deal with typically...
I address that in a number of videos. Depreciation, cashflow, amortization, appreciation. By the time you factor those 4 things in, that 6.5% turns into double digits on annualized basis very easily. Plus leverage. Real estate builds long term wealth not CDs, though CDs are certainly more liquid and easier to buy
What you pay for it usually doesn't matter. What matters is the value of the collateral. So if the value is $60k, then that's what you're showing to the bank as the value of the collateral. Even if you paid $20k for it.
Get as many bids on everything as possible. Shop around for GCs, contractors. There's always ways to value engineer projects without sacrificing final product quality.
Permitting should take no more than a month. We can build these in 6 months. This is assuming it's by right zoning. If you need to rezone, then it'll take longer.
concrete would be awesome but expensive. We use double stud walls, insulation in each wall, 5/8" drywall. Try not to stack bedrooms next to each other whenever possible also.
Please be sure you don't overcharge rents, and install effective sound board on the second floor. Otherwise it's misery for the resident downstairs and they don't stay. This is part of providing something better. Thank you. -R. Interior Architect. ⚘️
Thank you so much for the free content! And i have to say the quiet part out loud. If the zoning permit doesnt come through, yes you can walk away from the deal, but youll also be in the hole $15k in soft costs right? Or Am i misundersranding the process?
Yes that's right. There's always a risk to this that you will lose your soft costs if approval is not granted and it's happened to developers in the past. So choose your battles carefully!
so many videos they just talk and talk and talk about fucking nothing, but here we have actually something that did and its giving us insight into how it all went. thank you for this blessing.
Do you mistrust them because you believe they won’t care as much as your staff would? Or do you mistrust them AND don’t think they will care as much? Curious to know more about the mistrust aspect.
It's not really a trust issue. Most are good honest people. It's just that 3rd party management companies will never care as much as me or my in house people or ever have the same attention to detail as our in house team is trained to have.
Hello, great presentation. Can you please tell me if you need a general contractor to secure a construction loan or can you operate as your own general contractor? Do you operate as your own general contractor or do you pay for one? Thanks in advance!!
Most banks will want to know who the GC is and whether you have a qualified one on the job. Yes you can GC it yourself assuming you're licensed and your bank is ok with it.
Thank you for the most valuable information. If I can get over my fear I could finally develop the four lots that I own. I always wanted to know how I can develop the land that I own in Tampa. Now I can look at trying to find funding. Thanks.
Hard to say whether cheaper or easier. Depends on a lot of factors. It's more of a matter of control than cost, honestly. Yes you can probably save $ by bringing things in house but only if you bring in competent people who are cost conscious. It's the control that you'll gain that to me matters the most
Does the bank wire you the entire loan/money for the construction? Do they inspect your project development ? Or does the bank expect you to fund the construction cost upfront, and then the bank refunds you for each Devision you complete? How is the interest rate calculated during the short-term of the construction loan? Do you pay a monthly interest only payment for the entire loan ? I'd appreciate it if you could clarify this portion. Thank you in advance
No the bank will usually fund in draws. They will reimburse you for work already done in stages and only charge interest on the amount of $ actually funded. We typically make monthly interest payments. Hope that clarifies it!
