So, I'm 19 years old, hoping to get started investing in real estate in coastal South America, Ecuador to be specific, and the market is roughly 50% cheaper to build. I am planning on simply building homes as I have great contractors and architects already on my team, but am wondering if that's the best way to go.
Realistically I could put 70k into a single-family deal, and 6 months and then immediately sell for 120-150k. I want to get into larger deals because my main goal is cashflow, which obviously isn't possible with this deal. Yes, I could just not sell the home, but I don't want to be investing in single-family residences for cashflow at all.
What other strategies would you recommend for a market where it is far cheaper to build than to buy???
Thank you so much, everyone, for your contributions to this forum post!
Peace, Love, & Positivity,
Future BP Podcast Guest
We are building and holding everyday and love the tax benefits. We still watch the market daily in case a deal comes along but the new homes are cash cows now for sure and 100% on cash on cash return.
@Eric Burch Hey Eric :) Do you sell certain properties in order to fund future construction, and if so, at what point? How many units are the properties you focus on?
I have definitely considered doing this myself, but will probably just immediately sell my first few deals to get access to capital to get into larger deals, or just more single-families simultaneously.
Dominic, We have a real estate brokerage, construction company and holding company. The real estate company pays the bills and we use the construction company and holding company to build our wealth. If you can take $70,000 and turn it to $120,000-$150,000 I would be lining those up as quick as possible. You may look at holding every other one for now to develop some cash flow and put off paying the taxes for now. Once you get a nice portfolio built up you could leverage it or cash out and purchase something larger.
We have 45 single family, a couple duplexes and 3 four plexes. The multi family are great when it comes to returns and we are looking for a 50-100 unit complex now. The single family are the bread and butter for us and generate a great cash flow with very little head ache.
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