Updated about 6 years ago on . Most recent reply
Using my skills to build new multi family projects
As a General Contractor I know I can build tons of equity into any home, duplex, or multi family that I build. I have too many examples to list. We used to call this "sweat equity". However, banks these days hate that term. Which is why I hate banks. I'm looking at a piece of property right now that I can build 10 units on right here in my home town. Upon completion NOI will be around $110,000. I can build all 10 units for $1,500,000. You do the math. Cap rates in this area are 5. And I'm talking cap rates of 5 on EVERYTHING. New stuff, old stuff, you name it. Nobody is ashamed of their properties right now. And these bankers still look at me cross eyed. I mean I'm looking at around $700,000 in equity when I'm done. And it still isn't good enough for them. Ya, I hate banks!!