Apartment Construction | Building new multifamily units from the ground up as an investing strategy

Join Ken as he talks with his long term business partner Ross McCallister about building multifamily apartment units from the ground up.

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Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and most recently his book on entrepreneurship: The Sleeping Giant. Ken is a Rich Dad Advisor.

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If you are interested in this topic you can find more information out at the links below.

Aug 7, 2020 - For ground up MF development. ... In version 2.4, we added the ability to include a basic Mezzanine Loan as part of the Construction Debt.

Multifamily Construction ... Berry Construction Online Project Management System ... Ground up construction involves starting a building project from an ...

... GSP successfully arranged $4,700,000 of Joint Venture equity for the ground-up construction of a 45-unit fully entitled transit-oriented apartment development ...

#RealEstate #Investing #KenMcElroy

[jordanaubrey-realestateinv]

Real estate has changed my life. Actually we are about to do 5 new construction property this month. Keep winning Ken

[travismccasland]

One of the best build operations I've been aware of is Budget Suites Inn . Each crew had one job every day . Each framing crew had their floor to complete each day . It was run like a production line .

[chrisashley]

Hey Ken and Ross. Thanks for doing this. I am currently in the process of starting a semi detached and a duplex. You guys are correct from the finding, funding, sequence, and building of the team. All the information is out there and if you work with the city they will actually show you what to do. Be patient but it will get done. As you said they make money either way and forever through property tax. Great advice and I would love to visit a project with you as eventually I would like to go multi unit, low rise... and one day a skyscraper! All the best!

[musiccd]

I really liked this episode... there should be a part 2 of this.

[OceanJangda]

Awesome. Love your videos Ken. Would be excellent to see a part II here with Ross talking about how to get good at pre-dev activities like building pro-formas and where to find the data you typically need.

[chopaface]

This is so valuable! I want to hear more from a project management perspective. I am in project management but on the business and IT side. Never dabbled in construction. But one day, I would like to develop my own multiplex home to house my family. Great stuff and lots of good valuable and important information such as municipal fees and infrastructure cost when considering additional units.

[cafekiva]

Thanks, Ross for chiming in here. Thanks to both of y'all for anchoring the discussion around the actual realities of the AZ market. It's a shame Flagstaff can't afford your level of support. As a casual observer, site developers should also be acutely aware of prevailing cultural vibes surrounding institutions like University of AZ, Flagstaff, before building something better suited for west LA.

[TheBigfoot]

Years ago, a typical 200 unit project was usually a 12 month job. Difficult site conditions can extend that time frame. The leasing office can usually be popped out in 6-8 months. Having a great group of MULTIFAMILY skilled subs is a huge benefit. Most projects I managed in the last several years, were arranged such that the lender disbursed payments based on exact sub/supplier draws. Gen Conditions was usually a flat, monthly fee for each month. Sometimes varied based on the lender.

[rayurlich]

Great intro to apartment development. Thanks from New Zealand.

[charleskaufman]

Thank You both very much, I will check out the reference material that you provided. It would be nice to see the next steps that you use to decide either to build or to buy existing units, "maybe it is just to keep a mix investment strategy".
One of the reasons that I see it is more of a long term pay out, "big increase in equity once project is stabilized" and then Refi to collect increase equity and then start collecting long term CF on property.

[TheBigfoot]

I retired from 35 years in multifamily construction, mostly in TX. Seems like today the material prices are so high, and subcontractors prices are higher than ever. With this downward spiraling economy, how do the numbers make sense?

[markeselotto]

So when you’re Analyzing land with plans included how would you know the price for the land is good, would I just find out the rents for the units and operation cost for the building?

[acsh]

Yes! Great info from the pros. Keep the education coming. Thanks

[Danny-fshk]

Another excellent video! Very informative. Thanks Ken.

[paulross]

If I was planning a new construction multiple family complex I would look into Modular Construction. Less contractors to deal with and project goes up quickly with quality.

[ThaylorHarmor]

Will Apartment landlords increase rents to cover the costs of eviction moratoriums?

[Marc-uwlw]

Amazing insight. I really appreciate your transparency. I’m going to have to make time to watch every single video you’ve made 😅

[chasefreeman]

Ken, do you know any videos or acronym sheets for vocabulary to learn for commercial real estate development? I need to learn terminology so when I am on sites I can talk the talk and walk the walk.

[jvyskjp]

"Guys who specialize in apartments" 💯 as an Electrician in this exact field, very true. 👍

[TophoriMusic]

Such good information!!! Thank you so much. I felt like I got so much experience just listening.