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• Shawn: @shawn_dimartile
• Mike: @miketighe_

In this episode of the Real Estate Takeoff Podcast, hosts Mike Tighe and Shawn DiMartile discuss their transition from buy and hold multifamily investments to ground-up development. They explain the reasons behind their pivot, including the rising costs of existing properties compared to the cost of building new ones. They highlight the benefits of ground-up development, such as lower expense ratios, higher profits, and the ability to provide affordable housing options. The hosts also address misconceptions and criticisms surrounding complete communities programs and zoning laws. Overall, this episode provides valuable insights into the world of real estate development and the advantages of ground-up construction.

Some key takeaways from this episode:

• Replacement costs for existing multifamily properties have met or exceeded current pricing in most parts of the country, making ground-up development a more profitable option

• Building new multifamily properties allows for lower expense ratios and higher profits compared to purchasing existing properties

• Ground-up development provides the opportunity to create affordable housing options and avoid rent control regulations for the first 15 years of ownership

• Value-add properties may appear attractive, but they often come with higher expense ratios and potential issues due to aging infrastructure

• Complete communities programs aim to increase housing density and provide affordable housing options, benefiting both developers and low-income renters

Learn more about Mike and Shawn:

• Shawn: www.investorshawn.com
• Mike: www.investormike.com
• Website: www.takeoffcapital.com