Real Estate Investing with Coach Carson

#383: Why I’m Building Properties, NOT Buying (Build-to-Rent 101)

Feb 10, 2025

In this engaging discussion, Eric Newton, a seasoned builder and land development expert, shares insights on why he's focusing on building rental properties instead of buying them. They delve into the intricacies of identifying prime land, navigating zoning regulations, and securing financing for build-to-rent strategies. Eric also emphasizes the importance of efficient home design, maximizing space, and reducing costs. The duo offers valuable tips on managing subcontractors and project timelines, making building new rentals an exciting venture for aspiring investors.

46:42

Creator website

Episode guests

Eric Newton

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

The shift from buying older rental properties to focusing on build-to-rent projects allows investors greater control and potential returns.

Securing prime land involves understanding local zoning laws, which can significantly influence the number of units developed on a property.

Effective financing strategies, including partnerships with private lenders, are essential for successful construction while ensuring risk protection for all parties involved.

Deep dives

Transition to New Construction

The speaker discusses a significant shift from investing in older rental properties to focusing on new construction or build-to-rent properties. This transition has proven to be transformative, as it opens up new opportunities for investment and development. The speaker shares insights about collaborative efforts with a builder partner to streamline the process of finding suitable land and constructing new homes. This new approach allows for greater control over the design and potential return on investment from the properties created.

Intro

3min

Real Estate Investment Essentials

7min

Exploring Startup Experiences and Investment Strategies

2min

Navigating Land Development Challenges

18min

Efficient Home Design Strategies

4min

Maximizing Efficiency in Property Design and Insurance Solutions for Landlords

2min

Navigating Real Estate Construction Challenges

4min

Financial Insights for Rental Properties

10min

⭐ Join Rental Property Mastery, my community of rental investors on their way to financial freedom:

https://www.coachcarson.com/rpm

🎙️ Episode #383 – I always talk about buying rental properties, but what about building them? Eric and I break down our latest project in Seneca, SC - how we identified prime land, tackled zoning challenges, and financed a build-to-rent strategy.

📋 Coach's Free Construction Plans & Draw Spreadsheet:

https://www.coachcarson.com/newbuild/

📄 Show Notes:

https://www.coachcarson.com/buildtorent/

🎬 Timestamps:

00:00 - My new construction deal

01:40 - Unique features of the property

03:40 - Density and understanding zoning regulations

04:08 - Calculating potential lot yield

06:09 - Ideal characteristics of a development property

09:48 - Strategies for acquiring lots in older subdivisions

14:35 - Process for obtaining building permits