Updated over 2 years ago on . Most recent reply
New Construction Investing
I was approached by a property manager that I know who also has a construction business. He offered me an opportunity to partner with him on a new construction deal in PA. He owns 2 lots and wants me to come in to help finance the construction project which he will manage and oversee. The plan after that would be to refi and continue investing in existing homes or go the contraction route again.
What are some of the things I should be asking, thinking about, lenders I should be talking to, things I should be concerned about, etc...
TIA!
Most Popular Reply
Congratulations on your potential venture and for seeking advice on BP - that's the spirit of a successful real estate investor!
This opportunity holds promise, but it's essential to consider all factors. Start with due diligence on the lots and scrutinize your partner's track record. Consider the project's financial feasibility - remember, only invest what you can afford to lose.
Legal agreements and financing options are other vital aspects. Ensure you have a plan B, an exit strategy. Study market conditions in PA and familiarize yourself with the construction plan. Lastly, understand the refinancing strategy.
Remember, success in real estate is not about avoiding risk but managing it. So, even if you face hurdles, view them as opportunities to learn. Stay proactive, protect your interests, and don't forget to celebrate your progress on this exciting journey. Best of luck!