Building or buying multifamily homes when market is up.
Hello everybody !
What type of investment do you recommend when market is up and you can not find properties who can follow the 1 % rule ?
I am thinking to build rather than buy and like this profits can be higher ...
Did anybody had this dilema ? What challenges did you faced ?
Ps : The market where I invest is Bucharest - Romania
Many thx !
Gabriel
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Greg Dickerson
#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
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- Charlottesville, VA
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Greg Dickerson#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
You can mitigate the development risk by hiring a development consultant and experienced team. It does take deep pockets as you will generally have to put more equity up, carry the interest cost during construction and lease up and you have no income coming in until the project is complete.