New Build Project - How I started out?

[Vijaianand Thirunageswaram]

Howdy folks,

I am always excited to share with you all the projects and lesson learned. Recently, we are doing new build in the Acres Home area. It's slowly changing like other parts of Houston. There are lots of new houses popping up and people are willing to buy and move in to stay closer to city. 

As many of you know, I been doing flips for a while and going good but always had an eye out for new construction. New construction is much more fun and fulfillment and more importantly better margin. I been looking out for a right project and this lady just popped in our radar from nowhere. 

Yes, she was the listing agent for one of my property which my buyer purchased in Sugar land area. She was nice and she wanted to meet with me because she also invest in real estate. First I was wondering why is so interested to meet. It ended up I got more out of the meeting than her.  That proves the saying, "Leave no stone unturned". Always meet people and you will surely learn and get something out of it. 

We shared our passion and talked about our projects and she mentioned that she had done some new construction with the help of civil engineer cum contractor and budget wasn't too high. That' kinda of intrigued us (my wife was with me). We learned about her experience and she said will connect with him if next project pops up. 

Later that meeting, she arranged meeting with CE and we were talking about the next project. I was part of the 2 SFH houses he was planning to construct. We jumped on it with little bit of hesitation being not knowing each other. We closed the lot purchase on last day of last year, Dec 31st hoping for new year with new experience. After all the bad weather, we finally got something started out in March and now we are in framing stage. Project is delayed a month due to the weather but hope to finish it up by May and sell it as well.

I have witnessed new construction in the past for our homes but constructing new thing is always exciting and especially for business and hope to sell to a family is a great feeling.. I already got one more LOT not too far from this construction site and plan to replat and build 3 more houses starting in Jun-Jul if this all goes as per plan.

So "Never say NO" to anyone who really wants to meet and talk to you. You never know you might come out as a winner. I like to meet my mentees but time is always constraint. I do my best to try to meet if they really want to have personal conversation.  Lot more going on, helping out on Rehab/Flip Project for BP Member @Arun N in Tomball.   

@Arun N

[Tony Castronovo]

@Vijaianand Thirunageswaram hey this is exciting! I haven't run the numbers on new construction but I got intrigued during one of my apartment shopping visits last year. I visited a 20-unit MF that consisted of 10 one-story buildings...some were 2 X 1-unit studios, others were 1BR + 2BR buildings, etc. Each building was 2 units and they were split in half with two parking lots and a nice courtyard in between. It was essentially a small community that a developer/investor stood up back in 2014 (so still new). The model was that he would build these communities, lease them up, then sell essentially as turnkey. It wasn't something I wanted to buy....but I liked the model as I am sure the land and development costs were not over the top and once he sold at NOI / Cap Rate he likely did pretty well. I am speculating...but it was in interesting model.