How to Develop a Build to Rent Duplex (How to Build Ground Up Real Estate)
Рет қаралды 69,247
Күн бұрынIn-depth training video on developing rental duplexes ground up, including how to determine value of land, perform due diligence and line up financing!
Links from the video:
Land Due Diligence Checklist: RehabValuator....
Free Land Video: • How to Get Free Land! ...
$1 Trial of Rehab Valuator: RehabValuator....
Topics we cover in this training:
- Why duplexes are better than single family rentals and will make you more $
- The full development process outline
- 3 most important financial metrics when evaluating build to rent deals
- The one factor in development you have most control over
- Do deals still pencil out in today's market? I address that
- The 8 Vital Steps to Deal Financial Analysis and figuring out the offer you must make for land!
- Why I don't like 3 Bedroom units in my properties
- How to figure out construction costs on your project
- The concept of "Max Leverage" and why it's crucial to understand it in a shifting market
- The smart "leverage levers" you can pull in order to be able to borrow more $ and need less cash!
- Vital Due Diligence Steps you must take to protect yourself against buying land you can't develop
- How to structure your financing (cash vs. construction)
- Multiple creative options you can use if you lack cash
- The BIG advantage to development vs. buying existing assets
- And much more!
@alejandrocabagne2375 5 ай бұрын
One of the most comprehensive lectures on the web. Thank you sir.
@RehabValuator 5 ай бұрын
You're welcome!
@user-qg4il6iu2e Ай бұрын
I work as a superintendent for a large Multifamily developer (merchant builder). Lately, I’ve had feelings that maybe I could do this myself, but ultimately I think what’s holding Me back is fear. Videos like this really help chip away at that fear. Sincerely, thank you Sir!
@RehabValuator Ай бұрын
Really glad to hear that! You already have the construction experience. If you combine that with knowledge on putting deals together (finding land, securing $ and entitlements) you'll do great
@yadeno6169 23 күн бұрын
I'm rooting for you sir!
@Michellemybell739 Ай бұрын
I’m an agent turned new developer here in Atlanta and it’s been an uphill battle for me and my partner the last couple of months but we have several deals in the pipeline. This video sheds a lot of light on that entire process. Love it! Thanks so much ❤
@RehabValuator Ай бұрын
Really glad to hear it and you're welcome!
@TennisTD 3 күн бұрын
So good. This is exactly what I need. I have free land, bc my project is on a property with a unit on it already.
@RehabValuator 3 күн бұрын
Awesome! Nothing beats free land
@TennisTD 12 сағат бұрын
@@RehabValuator your a great communicator, thanks for all the free content
@BJ-fu4zy 5 ай бұрын
Currently building first duplex in Georgia! Awesome vid
@pimpinaintdeadho 5 ай бұрын
How are land/real estate prices in your area?
@BJ-fu4zy 5 ай бұрын
@@pimpinaintdeadho Bout $150-$160 a sqft
@uhhcrave 5 ай бұрын
what part of GA, BJ?
@BJ-fu4zy 5 ай бұрын
@@uhhcrave Richmond county
@414monii 5 ай бұрын
What’s the build cost?
@sergioluna6203 2 күн бұрын
Reaaaaalllyy good materials. And info.
@RehabValuator 2 күн бұрын
Glad you think so! Thank you.
@ColbyCBoone 3 ай бұрын
I found this information extremely valuable , you have certainly earned my business & I will be giving Rehab Valuator a spin ! 🥂
@RehabValuator 3 ай бұрын
Glad you found it valuable, Colby and look forward to having Rehab Valuator be a valuable part of your biz as well.
@PristineFiber 19 күн бұрын
Amazing info. Much appreciated. Your hard work did not go unnoticed. Thanks.
@RehabValuator 19 күн бұрын
Glad it was helpful!
@johnjv24 5 ай бұрын
This type of project is what I am looking to start this year!! Thank you for this video!!!
@RehabValuator 5 ай бұрын
Let's go!
@yadeno6169 23 күн бұрын
Great video Daniil! thank you for providing really good information!
@RehabValuator 23 күн бұрын
You're very welcome!
@luqmanmohammed1730 27 күн бұрын
This is simply beautiful.
@RehabValuator 27 күн бұрын
Thank you!
@Juvvgarcia_ 4 ай бұрын
As someone who is brand new to developing and seeking to learn this is the best educational video I’ve found thank you for putting this out! 🔥
@RehabValuator 4 ай бұрын
You're very welcome!
@jeremytorres973 2 ай бұрын
Hey if i paid you would you help guide me through this process? Please im trying to buy my first home and would love to do this. I am a realtor and understand most of the process but i am still afraid to proceed without an experts guidance.
@RehabValuator 2 ай бұрын
@@jeremytorres973 we don't offer one on one consulting or coaching right now. We do have a group mentoring program but even there we don't really take people by the hand - it's more of a mentorship group where you can ask questions and get advice
@jeremytorres973 2 ай бұрын
@@RehabValuator well how can I join?
@RehabValuator 2 ай бұрын
@@jeremytorres973 www.RehabValuator.com/inner-circle
@denisetaylor8279 5 ай бұрын
This video has been so helpful. I’d like to thank you for taking the time to share. Someday I’d like to become a developer. Your training answered a lot of my questions. Take Care!
@RehabValuator 5 ай бұрын
Thanks for watching and I am glad the video was helpful!
@ramezqubain8177 5 ай бұрын
Exquisite presentation. I have been using Rehab Valuator but in this video I learnt the concept of maximum leverage and how to solve for it using the other parameters.
@RehabValuator 5 ай бұрын
Ramez! Good to hear from you bro. Yes maximum leverage is a crucial concept and right now is more important than ever to understand given what rates have done.
@pimpinaintdeadho 5 ай бұрын
Daniil, thanks for all of your valuable insight. I wish I could put this theory into practice but, in my local market, real estate is massively over valued currently. The fundamentals of income to rent/mortgage costs are not aligned. Rents are plateauing in the metro Nashville area. I'm very apprehensive right now. Anyways, thanks for the uploads and keep em coming!
@Ddimarco 5 ай бұрын
Land is too expensive in Nashville. Has to be sold as NOO Airbnb outside the city. Not worth the risk in my opinion
@RehabValuator 5 ай бұрын
Check out the Free Land video I link to at the top. There are always creative ways (that very few people know) to general cheap land basis even in tougher markets
@Taylor-kd6lr 5 ай бұрын
This is fantastic Daniil. I have been following you for a while now and love your presentations. They are easy to follow. It is my goal to sing up for one of your mentorship programs, so I can learn so much more from you in person!
@RehabValuator 5 ай бұрын
Glad you like them! Look forward to you signing up!
@donanyiwo9538 5 ай бұрын
Awesome video Daniil
@RehabValuator 5 ай бұрын
Thank you!
@Kevin-om4yn 2 ай бұрын
Love the video, You did an amazing job.
@RehabValuator 2 ай бұрын
Thank you!
@frederickmason9419 18 күн бұрын
Love the video, thanks for the knowledge
@RehabValuator 18 күн бұрын
You bet!
@realestatesterling 5 ай бұрын
Great video Daniil. Thank You!
@RehabValuator 5 ай бұрын
You're very welcome. Thanks for the feedback!
@rosemaryk6807 5 ай бұрын
Great training. Thanks so much
@RehabValuator 5 ай бұрын
You're welcome!
@marioarcari7649 5 ай бұрын
this is fantastic content , invaluable information , worth its weight in gold . thanks D
@RehabValuator 5 ай бұрын
Glad you think so! Appreciate the great feedback!
@fattiejayzz Ай бұрын
Should have just waited , thanks for the thought behind the 3 /1 roommate clause
@duprosezzllc223 4 ай бұрын
This was sooooooooooooo valuable ✔
@RehabValuator 4 ай бұрын
Glad to hear that! Makes all the hard work worthwhile!
@Myrakel-d1h 8 сағат бұрын
Will it be harder for a bank to approve you if this is your first ever investment ? Can you do a detailed video on how the refinancing process works for duplex’s? Thank you ! Great video
@RehabValuator Сағат бұрын
Certainly. Banks feel more comfortable lending to people with some form of a track record but that doesn't mean nobody will finance you. Build a great team around you and talk to lots of lenders. You'll find someone to take a chance on you.
@davidadamson3664 Ай бұрын
I am almost exactly like you. So much of what you said in the first five minutes is my life right now. Also after building and renting for years, I can sell and hold the mortgages.
@RehabValuator Ай бұрын
Awesome!
@siegfriedherrmann5159 3 ай бұрын
Thank you sir ...for yet another outstanding and highly informative presentation! I just love your presentations and always learn alot from it!!
@RehabValuator 3 ай бұрын
Appreciate the awesome feedback and glad it's helpful!
@GabrielJohnson-u8g 18 күн бұрын
Hey there love it - inspired me to jump in and I’m under contract for my first deal (land). When you are analyzing soft costs, are you always budgeting for an engineer or is it case by case based on the lot? Thanks!
@RehabValuator 17 күн бұрын
Nice! Congrats! We only use structural engineers on commercial projects typically, not residential. If a residential project is big enough (multiple homes or townhomes) we may need civil drawings otherwise that's only commercial projects as well. Same for MEP engineers
@muyiwa508 3 ай бұрын
I really enjoyed this video. It is the best I have watched. Thank you so much. I will like to stay in touch as I have a couple of land I am looking to develop.
@RehabValuator 3 ай бұрын
Appreciate the great feedback!
@rinaldoed7481 3 ай бұрын
I really appreciate your presentation and the content. I am going to try this out (hopefully, in Texas and California). I will stay in contact and let you know how it goes. Thanks again
@RehabValuator 3 ай бұрын
You're welcome and sounds good!
@JigarPatel-t2b 11 күн бұрын
Great video breakdown! One question, cost to build @21:28 is showing $140 x 2400 = $308,000. Shouldn't this equal $336,000? Just making sure I am not missing any additional calc that went into the cost.
@Myrakel-d1h 8 сағат бұрын
Would you recommend starting off flipping & holding before building duplex’s ? I love the new construction route
@RehabValuator Сағат бұрын
I certainly think it helps to have some rehabbing experience before jumping into new construction but it's not absolutely necessary.
@therehabbersplaybook6586 5 ай бұрын
Thanks for this! Hoping for my first in 2024 💪
@RehabValuator 5 ай бұрын
Let's goooo
@pegpopken 4 ай бұрын
good explanation of why new rentals cost so much ,
@RehabValuator 4 ай бұрын
Glad you liked it!
@ben-rlty-inv6663 5 ай бұрын
I've been watching you for years now. I'm here in Richmond with 5 single family homes and I would like to turn them into duplexes and maybe a 4plex but can't seem to run into the right builders. I'm going to try to get some plans to get quotes.
@RehabValuator 5 ай бұрын
Small builders that can do a good job are actually harder to find than those that can build large commercial projects. I feel your pain!
@BJ-fu4zy 5 ай бұрын
I would pull permits at the county to see who's active and call them. Or drive around and look in the construction boxes on site
@Man-u-flex 5 ай бұрын
Why not 8-10 units
@riumudamc4686 5 ай бұрын
Daniel, the hardest part of this process seems to be estimating the rental income. You are very familiar with your market which is an advantage. How do you recommend someone learn rental comps and what the demand is for a new market? Thank you
@RehabValuator 5 ай бұрын
Well for rental comps, I am partial but I do recommend Rehab Valuator Premium. As for what's in demand, talk to local people. Talk to local investors. Look at your specific target area and look at all the rental listings. What is there a lot of? What is lacking? Call around to some of the larger apartment buildings and find out how many units they have vacant. That will tell you if they're renting out their 1st quickly, 2s quickly, etc. Talk to local management companies - same thing - ask them what they're renting out quickly and what's sitting for a while.
@KolB_ 5 ай бұрын
Hi Daniel, I've followed your content for a while. I really appreciate the information you put out. It is very helpful to new investors. Question for you: Have you ever built a stacked duplex on a sloped lot? I purchased a property with a neighboring duplex in 2022. There were some septic issues limiting the # of bedrooms that could be housed under a single structure. The water will be connected within the city limits. I was wondering if you've encountered a septic installation issue or if most of your projects have access to city sewer? Thank you for the video and best of luck in 2024!
@RehabValuator 5 ай бұрын
Hi. Never dealt with septic. Everything we do is only city sewer/water hookups. Sloped lots can be challenging but really depends on specifics of topo. Can still develop in some cases
@philipmay7604 Ай бұрын
Getting ready to build in Charlottesville, VA! This was very valuable
@RehabValuator Ай бұрын
My alma mater! What are you building?
@philipmay7604 Ай бұрын
@@RehabValuator Duplex, thinking side by side but you have me contemplating top and bottom since its on a slightly larger than average grade.
@DavidWest-mv9yn 5 ай бұрын
Great Training. Thanks!
@RehabValuator 5 ай бұрын
You're welcome!
@TheComplaintsCoach 5 ай бұрын
Great video, information and numbers......
@RehabValuator 5 ай бұрын
Glad it was helpful!
@SunnyR-yi9te Ай бұрын
Great
@Bigcoopdog_01 29 күн бұрын
I loved it
@RehabValuator 29 күн бұрын
Glad to hear it!
@deqasuleiman1290 17 сағат бұрын
Is it possible, when the real state is contructed and stabilizes, to refininance out the all contruction cost, land etc and only have sweat equity tied up to the deal. Is easier doing it duplex, large appartments 150 etc, what do you thing, Daniil. I'ld love to hear your idea.
@RehabValuator Сағат бұрын
In theory it's possible but in reality costs of construction are high right now vs. As Built Values so in most cases you have to leave some cash tied up in these deals for a few years. High interests don't help either. It's certainly easier especially if you're starting to do SFH and duplexes and work your way up to larger projects
@deqasuleiman1290 Сағат бұрын
@@RehabValuator It’s been great speaking with you, and I hope to connect again soon. Your insights were clear and thoughtful, especially regarding construction costs and current market challenges. Just to note, I’ll be using Islamic banking, so interest won’t be a factor for me.
@RehabValuator 48 минут бұрын
@@deqasuleiman1290 Awesome! Good speaking with you as well
@SlangScientist 4 ай бұрын
Live in Mt. Vernon, NY where it takes a year and a half to build something like this because of the building dept.
@user-tp4wk8uo8z 4 ай бұрын
Do you have a video completing the steps? Would love to see your advise and experience on the second half or 2/3s. Very informative! Thank you
@RehabValuator 4 ай бұрын
Not yet but working on additional content
@user-nj8uk1dh8v 5 ай бұрын
Very informative Thank you very useful
@RehabValuator 5 ай бұрын
Glad it was helpful!
@notrust27 5 ай бұрын
Great video, very appreciated. Two questions; 1) should we have the land under a contingency agreement before doing the due diligence? 2) how do we determine the market value of the land? Thank you!
@RehabValuator 5 ай бұрын
The video covers determining the market value of the land :) Did you watch it? What parts are still unclear? And yes, I recommend having land under contract before you do any real due diligence.
@notrust27 5 ай бұрын
@@RehabValuator I must have missed that part, that's why I asked. No worries, I'll figure it out. Thanks for your time.
@RehabValuator 5 ай бұрын
@@notrust27 yep. I cover that in this video but also here's another: kzfaq.info/get/bejne/fr2Ki5uWyJfIf2Q.html
@ms.haqiahlee8374 4 ай бұрын
AMAZING JOB
@RehabValuator 4 ай бұрын
Thank you!
@Venger02 5 ай бұрын
Great video!!👏🏿👏🏿💥💥🔥🔥❤️❤️
@RehabValuator 5 ай бұрын
Gracias! Glad you liked it
@leeroach3381 5 ай бұрын
Very helpful Thank you for sharing
@RehabValuator 5 ай бұрын
You are very welcome!
@geartechstuff3592 3 ай бұрын
Hi Daniel, great video and very interesting software! To calculate the build cost do you use the total GIA (gross internal area) or the GEA (gross external area) which includes external wall thickness? If it’s the GIA does that area assume the cost of building the external walls, roof, porches decks etc? Thanks
@RehabValuator 3 ай бұрын
Always gross external area for this but i don't include exterior decks in the sq ft calc.
@channel6sandiego 5 ай бұрын
Well done.....love it
@RehabValuator 5 ай бұрын
Glad to hear it!
@RehabValuator 5 ай бұрын
Leave us your comments/questions/feedback! What other topics do you want videos on?
@td000 5 ай бұрын
is this Canadian specific content?
@RehabValuator 5 ай бұрын
@@td000 We are based in the US. But you can apply this logic (and software) to Canada as well. No reason why you can't other than that your government is a disaster and your real estate prices are out of control 😀
@Cash_Wise1 5 ай бұрын
Great video,well detailed But if you don’t mind can you please explain how you got the final Max loan amount,im a bit confused
@RehabValuator 5 ай бұрын
If you're using the software it'll tell you. If you're doing it by hand, I use Excel to back into the maximum loan amount at a certain interest rate and amortization at x DCR (example max payment that will meet 1.25 DCR at 7% rate and 20 year am). It's an excel formula basically
@buddyrevell511 5 ай бұрын
@Daniil: in the software, when you increase your loan term from 20 to 25 years, and when you get the land cost down from $60k to $50k, in neither change does your cash flow increase. It just remains $528/month. What am I missing here?
@RehabValuator 5 ай бұрын
@43:50 I change to 25 year amortization and cashflow goes to $722/month. Decreasing land purchase price doesn't affect cashflow. It only affects cash on cash return.
@sayazkou 2 ай бұрын
You are using less capital to generate the same 528$/month (cash/cash return increase). However, one should also consider that increasing the AM period could also increase the mortgage rate. In summary, the objective of this info session is to provide some guidelines, knowledge, and tools to analyze these types of projects. Thanks @RehabValuator for sharing. Great job!
@matthewmitchell60 3 ай бұрын
Great video as usual, i wish you would do more of real life challenges investors face. Just a little bit about my situation, i lost my love of my life for 30 yrs to covid19, prior we started investing after i retired in 2018. You speak of credibility we had it, my our credit was damaged once she took ill and the virus took her life. Im 63 yrs old how do a investor build credibility from my situation. By the way no foreclosures or bankruptcy. Thanks
@RehabValuator 3 ай бұрын
Really sorry to hear about your loss, Matthew! That's terrible. I have more content coming for sure and will add your suggestion to the list!
@oe1299 5 ай бұрын
🔥 🔥🔥 Great video
@RehabValuator 5 ай бұрын
Thanks! 😃
@jonathanwhalen1041 5 ай бұрын
thank you
@RehabValuator 5 ай бұрын
You're welcome!
@baoshenyi 5 ай бұрын
great inspiration video. You have a full time job as software developer? Do property builder as part time job? Thanks 😊
@RehabValuator 5 ай бұрын
Not quite. I am a full time real estate developer and am a full time software company CEO. Don't ask me how :)
@Flatpockets123 5 ай бұрын
Hey man, any books you recommend on real estate financing ? Something that goes into detail about the lending process and what banks are looking for etc etc
@RehabValuator 5 ай бұрын
Hi Anthony. Can't think of books specifically. I do have a detailed video on how build to rent financing works here if you haven't seen it yet: kzfaq.info/get/bejne/e6x_fZRpq9LZiYk.html I am also working on a new video specifically talking about what banks want to see before funding deals. Actually started putting together content for it last week!
@fattiejayzz Ай бұрын
Afternoon, one question I have is why not a 3/1 ? I'm my market an extra room brings more cash flow. It's a middle to lower class area, but I would like to build new.
@RehabValuator Ай бұрын
Great question. In our area we typically don't see families or kids so 3 bedrooms just invites roommate situations with non stop turnover. But if I was building in areas with better schools, would certainly consider building 3 or even 4 bedroom units
@davidharpur6561 4 ай бұрын
I would like to know about the how to get land for almost nothing or deals with land owners
@RehabValuator 4 ай бұрын
Check out this video: kzfaq.info/get/bejne/qNBljNBesr2-iok.html
@Coemuze 4 ай бұрын
Thank you for the very enlightening video. Do you just build the houses without garages, greenery etc. I noticed they are all standing alone. Is this because of Zoning requirements? What would you advise, if the zoning law requires a garage, greenery? Does your duplex-style build not allow for garages?
@RehabValuator 4 ай бұрын
In my rental projects I never build garages. Doesn't pencil out. We either provide off-street surface parking or they park on the street. In our for-sale product sometimes we'll add garages. As for greenery, we typically plant trees on the street and if space allows we'll addo some backyard or common green space.
@Coemuze 4 ай бұрын
@@RehabValuator Thank you so much for your response. I have been judiciously consuming your content on YT. My other question is, For an Owner-Build-Rent-Hold, as I intend to live on the ground floor of the Duplex I wanna build. Do I include my own rent in the Projected operating income? I tried excluding it, and the numbers didn't look good. It affected the ARV, I could n't hit the Cap rate of 7% without reducing my ARV. I played around with my sweat equity, % cost to be financed,and it didn't look good. what do i do pls?
@RehabValuator 4 ай бұрын
@@Coemuze If you exclude your rent it'll definitely crush the numbers. But I don't know if the bank will accept your rent in the pro-forma and count it towards DCR. You could always just include your rent and not disclose to the bank that you'll be living in one of the units, then create an LLC that will have a lease with the property and pay rent to yourself through that LLC. That being said I am always a fan of full disclosure and honesty with my lenders. So not the way I'd go about it.
@Coemuze 4 ай бұрын
@@RehabValuator Thank you again for responding. I had a chat with the financial institution yesterday, and it was established that since this is my first home, the bank is mostly interested in Debt-Service ratio before I am pre-approved. My spouse is of the opinion we shouldn't include our own rent in the POI. She however, thinks, we should include our utility bills ( electricity, gas, and water) in the POE, that way, the numbers may suck but we will establish the gap we need to pay out of pocket to meet our obligations to the bank. The smaller that gap, the better. Does that make sense?
@lindor-1luv402 5 ай бұрын
Great video Sir, very instructive, I'm a realestate investor who currently resides in Canada; but we plan on investing in the US, therefore I plan on purchasing your software. 1 Question, does your software also calculate Comps in foreign markets, example Canadian realestate market?
@RehabValuator 5 ай бұрын
Glad you enjoyed the video. Rehab Valuator is used by investors all over Canada currently but our data (for now) is US only. We are looking into adding additional data but don't have a timeline yet
@lindor-1luv402 5 ай бұрын
@RehabValuator Sounds good, I'm looking to use the software. On another note, have you ever been to Canada , Toronto, Mtl, Ottawa for speaking engagements? If not, do you ever plan to? We need to be exposed to more sound minded developers like you. These 10x Gurus conventions are getting overplayed...
@RehabValuator 4 ай бұрын
@@lindor-1luv402 I hear ya about the 10x gurus. Feel your pain. I don't do a lot of speaking engagements in person with 3 young kids at home. Mostly do webinars these days. I was in Toronto last fall with my wife. Gorgeous city. But that was just for fun!
@p5dxw87 5 ай бұрын
Very nice
@RehabValuator 5 ай бұрын
Thanks!
@seanjames9859 2 ай бұрын
Please confirm, when you say you can get" 90% of construction costs financed b/c you are bringing so much of the land equity into the deal". Does that mean that the value of the land will cover the difference of Constructions Costs - Projected New Loan Amount (for Refi)? So if I buy the land in cash and the value of the land if high enough, I shouldn't (in theory) need any more cash to close on the loan? Just not sure if I need to plan to have cash for the land purchase as well as the construction costs that will not be financed due to the DSCR constraints.
@jaykicks1407 2 ай бұрын
Good question ❓
@RehabValuator 2 ай бұрын
The answer is "maybe" and that's what I show in the video here and what Rehab Valuator allows you to figure out. If the value of the land is high enough then very possibly you may not need to bring more cash into the deal to cover construction costs. But it also depends on other #s such as LTV, LTC and DCR. It really depends and that's why I am working hard to teach people how to run their own #s on their deals
@javit6458 5 ай бұрын
Hi Daniil, Great KZfaq channel. Do you know if building a backyard duplex is possible on a property which has a 30 year mortgage? I have a corner lot that could fit it without affecting me much. Thank you!
@RehabValuator 5 ай бұрын
Possible but 2 factors you need to look into: 1. Zoning 2. Would your existing mortgage company allow a partial release so that you can split off that land? Right now the entire piece of land (along with the house) is security for that mortgage. They'd have to allow the split.
@javit6458 5 ай бұрын
Thank you. I'm planning to call my city's zoning office to confirm
@BradFlipMarket 5 ай бұрын
LETS GO!!
@RehabValuator 5 ай бұрын
Let's go indeed!
@KD-eq2ch 2 ай бұрын
Great content! Do you have any duplex designs you can share?
@RehabValuator 2 ай бұрын
Sorry but I don't typically share my architectural plans
@whymindsetmatters 5 ай бұрын
Would love to hear you speak about setting up your business entity.
@RehabValuator 5 ай бұрын
It's an LLC. There's nothing to it
@whymindsetmatters 5 ай бұрын
@@RehabValuator There's more nuance to it than just going to legal zoom and getting an LLC. I was just asking about your process.
@RehabValuator 5 ай бұрын
@@whymindsetmatters my process is I call my lawyer up and tell him I need an LLC created. He creates it. That's all the legal advice I am giving on here
@whymindsetmatters 5 ай бұрын
@@RehabValuator I wasn't expecting that kind of response. Hope your having a good day!
@RehabValuator 5 ай бұрын
@@whymindsetmatters don't get hung up on irrelevant stuff like overcomplicating entity creation. Keep the main thing the main thing. I am always having a great day.
@rafaelcamposdepinho5088 5 ай бұрын
Great video! What's the $30k in the LTC calculation (27:37min)?
@RehabValuator 5 ай бұрын
It's the soft costs (I cover it earlier in the video I believe)
@jaunbonaysmith 4 ай бұрын
Great content❤ New Subscriber here🎉
@RehabValuator 4 ай бұрын
Welcome aboard!
@Beowulf002 5 ай бұрын
hello daniil I live in an area that has townhomes and condos instead of duplexes, I found a vacant lot of .25 acres and want to build multiple quads on that property. My question is how do you run comps if there is not a comparable product, would an appraiser have to determine the value independently through the bank or would I need to consult with an appraiser to assess the deal?
@RehabValuator 5 ай бұрын
From my experience, when there are no duplex comps, an appraiser will use single family comps and adjust them up/down for duplexes. What kind of adjustments they make depends on the appraiser (do they increase $/ft or decrease, etc). What you may want to do is if you have a specific bank identified, confirm they'd be willing to fund them, then ask to speak to 2-3 appraisers they typically go to and ask those appraisers how they'd approach this. The bankers may have some feedback as well. I prefer local community banks for these types of loans.
@TylerJones-nu9ln 4 ай бұрын
Great training video! Question, new to this so is the permanent loan amount the new sweat equity value that you can walk away with cash in hand? A bit confused on that particular process. Thanks
@RehabValuator 4 ай бұрын
All good. Glad you're asking questions! The new perm loan amount is the maximum debt that can be supported with the project income of the property. Not the same as sweat equity and sweat equity is actually an indepent figure from financing. Sweat equity is New Value minus Total Cost of Project. So if your new building is worth $100k when it's built and it cost you a total of $80k to build it (land, soft costs, construction), then the sweat equity you create is $20k. Doesn't matter if you finance $50k or $100k. Does that make sense?
@seanjames9859 5 ай бұрын
How do you get your construction costs so low. In my market it’s 250 per sqft.
@RehabValuator 5 ай бұрын
It's market dependent. $250/ft in our market would be astronomical. Our market is "middle of the road" kind of market.
@lucas-hideo 2 күн бұрын
Hi, can anybody tell how he calculated the $274,500 max loan? on 26:54 please
@RehabValuator 2 күн бұрын
Grab a free version of Rehab Valuator and follow along with the math in the video and you'll easily see ;) www.RehabValuator.com
@carlosr.6928 2 ай бұрын
How is cash on cash calculated? 500/100K is 0.5% not 5%. 5% would be 5K, 10 times the actual pre-tax cash flow. Correct me if I am wrong please
@carlosr.6928 2 ай бұрын
Never mind. Is 500 times 12 because it is annual. 6K/115K is 5%
@RehabValuator 2 ай бұрын
you got it
@meltingpotonradio 4 ай бұрын
Would financial institutions give you a construction loan based on ABV? I think they mostly use Cost.
@RehabValuator 4 ай бұрын
They look at ABV, LTC and DCR. Usually at whichever is the lowest. These days DCR drives max leverage more than anything.
@gambino617 2 ай бұрын
Can someone please tell me if I’m still available to get a construction loan if I only have 20% equity in the land? And does it limit the amount I can borrow for construction?
@RehabValuator 2 ай бұрын
You can still get a construction loan if you have 20% equity in land (owe $ on land) but that construction loan will need to take out (pay off) your existing land loan. This also means you'll be able to borrow less for actual construction since part of the $$ will go towards land.
@sonnykim6755 2 ай бұрын
how much money did you need to start developing? 50k 100k 200k?
@RehabValuator 2 ай бұрын
I originally started with nothing but I didn't start out developing but rather rehabbing houses (doing BRRRR). We have content on BRRRR here on this channel btw
@clementinod7946 4 ай бұрын
Max% LTC 85 (60k+30k+308k) 338,000 max loan. Where's coming the 30k? please explain
@RehabValuator 4 ай бұрын
$30k was ballpark soft costs (closing, financing costs mostly)
@Man-u-flex 5 ай бұрын
140.00 per sf? Where is that area at? By me north nj is around 250 sf
@RehabValuator 5 ай бұрын
I am in Richmond, VA. Markets are different. But I also bet $/ft values around you are higher as well. If my ABV (as-built-value) is $225-250 per ft yours are likely north of $330-$350/ft
@Man-u-flex 24 күн бұрын
@@RehabValuatorfor 350 sf that’s Gc fee design and build I’m assuming
@user-dj5ts2lf4t 5 ай бұрын
He would this work if I want to build a duplex but owner occupy one side of the duplex
@RehabValuator 5 ай бұрын
With the right numbers, absolutely!
@christianstill.6654 5 ай бұрын
When will you make the rest of the steps??🔥🔥
@RehabValuator 5 ай бұрын
In due time :) What are you looking to learn specifically?
@christianstill.6654 5 ай бұрын
@@RehabValuator Everything on the list and how to partner up with developers like your self and equity investors to fund getting the lots and the soft costs and down payment before I refi or cash them out with the rest of the construction loan
@andrewmorris5947 5 ай бұрын
13 mins in … does this apply to 2-4 units or just duplexes… (with regard to building code demands and costs)
@RehabValuator 5 ай бұрын
Andrew - can you clarify your question. I am looking at 13 min in but not 100% sure what you're asking about.
@SoldoutforChrist1 Ай бұрын
Do you build in Florida?
@RehabValuator Ай бұрын
Just Virginia for now :)
@Man-u-flex 5 ай бұрын
So what is a better option side by side duplex or stacked ?
@RehabValuator 5 ай бұрын
What's your opinion? I can give you about 7 reasons why stacked duplexes are more efficient ;)
@carlosr.6928 2 ай бұрын
How bankable are expats in the US?
@RehabValuator 2 ай бұрын
Not an expert in this but you can definitely be bankable. Depends on the lending institution.
@BJ-fu4zy 5 ай бұрын
Do tenants complain about noise from the upstairs neighbor? Mine is a side by side duplex
@NightWolf-vv5me 5 ай бұрын
I was thinking the same thing. Side by side is better in my opinion
@pimpinaintdeadho 5 ай бұрын
Apparently not the way he builds. He has previous shorts were he talks about the materials he uses to deaden sound.
@RehabValuator 5 ай бұрын
We sound proof between floors very well and rarely get noise complaints. Building side by side also is much more inefficient! 1. You need more land. You need less land when you stack them vertically. 2. You need more staircases 3. HVAC costs will be higher. I can keep going. There's no comparison
@hugofebrerohh 5 ай бұрын
I am a general contractor in Illinois and I have been thinking about building two single family homes but after watching your video makes more sense to build a duplex My question is how do you manage the electrical and gas bills? Since you have one climate control unit for the bolt of the apartments.
@RehabValuator 5 ай бұрын
@@hugofebrerohh we have separate electric meters and HVAC systems for each apartment. No gas. Water is on 1 meter and we just split it (that's an oversimplification but we don't pay any utilities)
@Happy-xm3qb 5 ай бұрын
I have land in Durham NC. Looking for a partner to develop and build few duplexes. Do you do partnerships?
@RehabValuator 5 ай бұрын
Great market! But I've got a crazy big pipeline here already so no bandwidth for new friends :)
@edwise8927 5 ай бұрын
i am building new single family bec duplex is not allowed without special use permits here in NJ but new counstructioun numbers still work better thane rehap. how do i find cities that do allows Duplex?
@RehabValuator 5 ай бұрын
Why not apply for special use permits? The real $$ is made by CHANGING zoning not complying with zoning. That is the way to increase land value for yourself instead of paying the seller for existing value. Read this again and let it sink in!
@edwise8927 5 ай бұрын
wow your really have so much value here. i did look into rezoning but i was told it could take 2-5 years sometimes to push a rezoning through due to local municipals having so much power and angry neighbors who don't like change. If there was is a way to get the engineer, attorney and architect to move faster i would love to know!@@RehabValuator
@RehabValuator 5 ай бұрын
2-5 years sounds very long. Definitely some areas have so much NIMBY'ism that it's not worth it. Gotta pick your battles!
@ruffmichael 5 ай бұрын
Are your duplex plans available for sale?
@RehabValuator 5 ай бұрын
They're not. I always advise people to hire a great LOCAL architect who's familiar with your building codes, your local architectural styles, your local zoning and your local construction methods. It will be worth every penny!
@mmarkuez 5 ай бұрын
🔥🔥🔥
@RehabValuator 5 ай бұрын
Glad you like it!
@Iamaprilkimiya 4 ай бұрын
Hey, How'd you add the soft cost to the cost per sqft?
@RehabValuator 4 ай бұрын
Not sure I follow the question. Can you clarify please?
@Iamaprilkimiya 4 ай бұрын
@@RehabValuator sorry about that my main question was how did you calculate the closing/holding/financing cost? Like how did you ballpark that to 20 K?
@RehabValuator 4 ай бұрын
@@Iamaprilkimiya construction interest at 7% for 6 months so that's about $10k, closing cost on loan 1 point - $3k, rest for holding costs. It's a very rough ballpark. If construction takes longer, that # should be higher but we build quickly then roll over to perm funding
@Iamaprilkimiya 4 ай бұрын
@@RehabValuator Disregard my last comment, I took what you said and did a deep dive thank you.
@Holmesmistake 5 ай бұрын
I’m not following the part when the loan resets
@RehabValuator 5 ай бұрын
For investment properties, especially with local community banks, you won't get a loan fixed for 30 years. Typically the perm rate is subject to a balloon or a "reset" after 5, 7 or 10 years. At that time either your loan is due or you will renegotiate the rate with the bank based on current market rates. Or it will just reset to a pre-determined spread over a specific index, as determined in your loan docs
@christianstill.6654 5 ай бұрын
doesnt $2128 x 12 months x 20 years = 510,720?
@RehabValuator 5 ай бұрын
That sounds right. What is your point?
@christianstill.6654 5 ай бұрын
@@RehabValuator you said the max loan was 274,500, I thought the 510k+ would be the max. Am I missing something?
@RehabValuator 5 ай бұрын
@@christianstill.6654 yeah :) You're missing like a whole lot of math and logic here! It's not how that works
@christianstill.6654 5 ай бұрын
@@RehabValuator Care to explain? That's why I'm asking after all.
@RehabValuator 5 ай бұрын
@@christianstill.6654 I can't explain something so basic. It's like having to explain to you why you shouldn't fuel up your car with milk or something like that. I am not trying to be a dick. I explained how the max mortgage amount is computed in the video. If you don't understand how mortgages work, there's a ton of other videos on youtube about it.
@sarfito1 5 ай бұрын
Why not renovate cheap existing property?
@RehabValuator 5 ай бұрын
1. Not easy to find cheap property I actually want to renovate in the areas I am targeting 2. With new construction I get to create a much better product from scratch than anything I can do via renovating old properties
@handy-remodeler 5 ай бұрын
Tic tok mind...lol❤
@RehabValuator 5 ай бұрын
Tik toc brain! :)
@damon-elliottredding570 2 ай бұрын
Tiktok Brain 😂😂
@RehabValuator 2 ай бұрын
It's a real thing sadly :)
@davidadamson3664 Ай бұрын
When the project is done and rented, I want $866.00 net rent per month for every $100K invested.
@RehabValuator Ай бұрын
That's a good cash on cash!
I Built 4 Rental Duplexes. Here Are My Real Costs to the Penny! (Real Estate Development Case Study)
RehabValuator
Рет қаралды 85 М.
Garena Free Fire Global
Рет қаралды 11 МЛН
RehabValuator
Рет қаралды 257 М.
Urban Land Institute
Рет қаралды 85 М.
RehabValuator
Рет қаралды 13 М.
Coach Carson
Рет қаралды 2,2 МЛН
Grant Navarre
Рет қаралды 138 М.
RehabValuator
Рет қаралды 86 М.