Ground Up Construction for Duplex

[Jose Laffitte]

Hello all,

I am still trying to get my foot in the door in REI and I have been looking at fix and flips it in my area those are slim and the numbers are tight only because I have limited funds and was looking at doing JV's.

My main question is I have seen a number of multi-family units but they are pretty run down and for the price it's almost the same or better to build new. With that being said has anyone ever used Owner Financing to purchase land?

Does this type of purchase allow construction? Or does the land need to be completely paid off before you can begin construction.
 

[Keith Loranger]

If you have limited experience in real estate, trying to undertake development and construction is going to add a lot of other risk factors that you may be unable to navigate with the limited resources available to you.  If you want to get experience building, you could start by identifying property that could be developed, ensuring the owner is willing to sell, assessing the feasibility, and presenting the deal to a builder who could start to teach you if the deal makes sense.  The more deals you can show the better.  The builder will probably be able to tell you in those pitch meetings why or why not those deals make sense, which is a lot easier way to learn.