This episode breaks down exactly what it takes to go from flipping and renting to building from the ground up.
New development gives way more flexibility than buying an existing asset, and the numbers tend to stay far more predictable than a fix and flip. But almost all the real work happens before you ever close on the land.
Inside this episode: the front-end checklist for location, comps, topography, and utilities... zoning, entitlements, setbacks, and height limits... realistic permitting timelines... working with architects, engineers, and general contractors... the capital stack, loan-to-cost financing, and why you need way more upfront cash than people assume... plus the two biggest deal killers (bad location and entitlement denial) and why a long due diligence period is your best protection right now.
If you've ever wondered how new construction actually works, or you're thinking about making the jump from flips or rentals into ground-up development, this one's for you.
00:00 Intro & this episode's topic
02:25 Why new builds offer more flexibility than fix and flips
04:29 Front-end planning and building the right team
06:57 Location, location, location & finding strong comps
09:23 Physical due diligence: topography, utilities & existing conditions
11:49 Zoning, entitlements & finding the highest and best use
14:01 Setbacks, height limits & how long entitlements really take
16:17 Getting architect and engineer plans locked in
18:40 The real capital stack: loan-to-cost, reserves & down payment
21:20 Closing fast and getting the whole team moving
23:24 The two biggest deal killers: location and entitlement denial
25:28 Why a long due diligence period is the best protection
27:59 Final thoughts & how to get in touch
If you enjoyed this episode, be sure to subscribe, leave a review, and share it with someone building a business, a family, or both.
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Check out more from Wendell Butler
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Hammerhead Capital: https://www.hhcapitalrealty.com/
Flip Fuel Lending: https://flipfuellending.com/
Tide & Timber Ventures: https://www.tidetimberventures.com/
The Hive: https://jointhehive.co/
