New construction is an enigma to many real estate investors, and especially to rookies. When building a new house, you need to understand engineering, permitting, construction, and a more complicated funding structure. This didn’t stop Donovan Adesoro, house hacker turned home builder from keeping the investment train going.
Although Donovan had a background in engineering, he didn’t have much experience with building homes. He started off buying a duplex property to house hack, which turned out so well that he wanted to buy another. The problem? Not enough cash to make the down payment. So he wondered, “what would it cost if I built one of these?” Donovan discovered that he was able to use raw land as a down payment for a new construction loan. So if he had enough to buy the land, he had enough to build the whole house!
Now, at only twenty-four years old, Donovan has twelve lots either ready for a new build, partially through construction, or about to be sold. He’s taken advantage of the huge appreciation we’ve seen in the past two years and makes it clear that even if you don’t have money, you don’t have to give up on a deal.
In This Episode We Cover
The many costs that go into developing a new construction home
Engineering, permitting, contracting, and other key parts of home building
Using partners to cover costs when you aren’t able to come up with enough cash
House hacking as a way to get your start in real estate investing
Always having multiple different exit strategies so you come out profitable
Renting your car for extra cash and passive income
And So Much More!
Links from the Show
Real Estate Rookie Youtube Channel
Ashley's Instagram
Tony's Instagram
Real Estate Rookie FaceBook Group
BiggerPockets Podcast
Roomies
BiggerPockets Calculator
Law Depot
Turo
Outdoorsy
MLS
Airbnb
Zelle
Cash App
BiggerPockets Lease Agreements
Check the full show notes here: https://www.biggerpockets.com/rookie123
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Real Estate Rookie