Where to learn about ground up construction and development?

Question

Hello everyone!

I'm looking to learn more about ground up construction and residential development, doing anything between single family to duplex to apartments. Nothing commercial really, or anything major like a 10+ unit building. I'm a current house flipper and i've found great success in what i've accomplished so far, to the point im able to take on multiple projects at once. I do see a high demand for new multi family buildings in the areas I work in, and want to eventually tap into it(I work in the suburbs, not chicago itself.) I was wondering if anyone knew whats a good way to get started in learning? Any books, videos, articles I'm able to learn from? Thank you!

Doug Smith · Answer

We also have an investment arm that's been flipping for more than a decade. We're not only a lender doing ground-up spec construction, but we've done it ourselves. We stumbled upon a great lot a few years ago and the GC we were using for our major renovations was licensed to build the house. The first one we did required us to put a ton into the deal, but as we gained experience of doing ground-up spec construction deals, we were able to get more aggressive debt structures. Getting the right GC who has a handful (at least) of ground-up construction deals under their belt is key. You'll have to also make sure your numbers work. My suggestion, parter with someone who has done it before for three or four deals. Those deals will give you the experience to get better financing and you'll be well on your way.

Jonathan Klemm · Answer

Hi there @Faiz Kanash - You should definitely come to our Chicago meetup event this Saturday.  Our guests are Chicago developers that do ground-up construction.

Here's the link to the event:  https://www.biggerpockets.com/forums/521/topics/1132853-chic...

I've also done some ground-up construction as well and am happy to help.

Are there any specific areas you are thinking about developing?

Mark Ainley · Answer

@Rocco Piraino just sent you a DM

Mark Ainley · Answer

@Rita Roy just sent DM

Mark Ainley · Answer

Faiz, we had three very informative Podcast guests that spoke on this topic and it was specific to Chicago.  I will send you those episodes via DM.

Barry Ruby · Answer

@Faiz Kanash

Your first order of business should be to become financially literate and learn the metrics of CRE so that you can apply them to conduct pro forma modeling.

There is no way to properly assess the value or performance of any real estate asset without having these basic skills.

Please let me know if you have any questions or need any help getting started.

Where to learn about ground up construction and development?

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