Daniil is very clear and concise compared to other "building experts". Daniil is unselfish with his information and time. I used the rehab valuator to do a funding request for a fix and flip. The lender immediately gave me the funding at 100%. Thank you Daniil. I look forward to doing more deals for my non-profit.
CPA here, I strongly agree with @luisacosta2280’s comment. Everyone talks, very few actually walk through their real numbers and fewer ever show their budget versus actual. Refreshing video.
This excellent video, with its clear analysis of your project, has now motivated me to find a piece of property in my area, about an hour and a half West of your area, and finalize a design for a duplex or triplex and begin building in the spring of next year, 2025. Thank you for that great video!
so many videos they just talk and talk and talk about fucking nothing, but here we have actually something that did and its giving us insight into how it all went. thank you for this blessing.
This was very good. I'm in the trades and I'm glad you highlighted the order of which trades follow each other, a lot of folk don't miss that important step. I'm looking to start building within the next year.
Great job, congratulations. For the past 30 years as a general contractor I have been developing income producing properties in different cities as long as market conditions allow. I operate from Texas. I would like to share some experiences with you.
Great video! I buy-rehab and do Short Term Rentals mainly in SE Michigan (City of Detroit and the suburbs north of there), want to transition to construction to build Townhomes in a huge lot to the side of one of my houses in Detroit, land is cheap so just have to deal with high construction costs and the rates; I also came as an immigrant at 12!
Hi Daniil, awesome video on building duplexes, thanks for sharing such tremendous amount of knowledge, with that said, I’m super motived to move forward with a project of my own. I’ve been thinking about this idea for the past 2-years and recently a friend recommended your channel. I have a property with an older home (built in 1929), in the Richmond area, with a mortgage, I would like to demolition it and build a (1) duplex. I was fascinated with how you candidly laid out your Budget, under/overrun, for your construction cost, and walked us through the entire building process (AWESOME). I’m planning to use your videos and software to accomplish my goal. However, to avoid major mistakes, as you alluded, and I was advised to start with an architecture firm in area. So, I was wondering if you could guide in the direction of a firm(s) that is fair and familiar with the zoning in the Richmond area. My hope in doing this project is to generate some great sweat equity in a fast-developing market. Thanks in advance for all your AWESOME videos and software. Best regards.
Awesome! I don't want to post any architect info publicly at risk they get blown up but email me at daniil@rehabvaluator.com and remind me of this convo and I'll see if I can refer someone.
The key to this is land acquisition. Sorry if I missed it, but is there a price per sf for land. I've done a version of this in the past wanting to get back in. Right now, I'm looking at infill with alley access. With duplex zoning approval. Great video. Keep up the good work..
I show in the video towards the end what I paid per ft for land but that's not really best way to go about determining land purchase price. Here's a longer deeper training on how to properly back into land offers: ruclips.net/video/9zjeGb74TmU/видео.html
Hey! Love this channel, any books you would recommend? ALSO highly advise you write a “book” or a land development handbook - I would totally buy. Thanks Daniel!
Thanks for the feedback! Couple of books I like: Missing Middle Housing, Soft City, Building Small (by Jim Reid). Start with those. They focus more on housing types than teaching development or land development, but lay a good foundation for the type of development we do.
@@robertglover6538 that's plenty! Obviously we love to bring in new Rehab Valuator software clients if there's a need in your business but otherwise you've already done plenty!
@@RehabValuator Thank you so much for the responses Daniil. I will purchase these and read them promptly. Hope to stay in touch, thanks again for all your videos.
Daniil GREAT video...I've been viewing your videos for some time now and motivated more now than every to GET STARTED. Thank you for laying out the playbook...I already have identified three potential opportunities in my area based upon it.
$158/SF is very good. I find we are building stuff at $250/sf in SE PA(including land). Any recommendations/ categories to focus on for keeping costs down?
Seems expensive. Is this stuff you're building by residential or commercial code? Every time I am disciplined enough to go out and 3 bids on everything I end up saving money vs. going with subs and suppliers I've grown comfortable with. Value engineering your projects always pays off too. There's always ways to save without sacrificing quality.
Nice breakdown Daniil, I’d love to start building here in Oklahoma, how did you finance your first project, was it a single family home, new construction or fix and flip?
@@RehabValuator is that what you’d recommend, I’ve been in construction for over 30 years and need to make a transition from doing the work daily. Unfortunately my credit isn’t great currently.
I personally think it's a good idea to have some rehabbing experience before you dive into new construction but it's not necessary. If you've already been doing construction, what you now need is to source deals and line up $$
Daniil, Great video and thank you for all your effort in sharing your experience. Question: I see a GC Fee of $158,900 on the expense list. Is this a plugged number to cover your in-house effort it required to GC this project, or is this 12%-13% of the total cost to build used to pay an actual GC? Thanks again for the insight on a project such as this. Russ
Oh man, developing real estate seems so easy in the US! In Germany our cost/sqft are more than double, and our rents are similar. Land is mostly more expensive as well. I wish we were allowed to be as cheap as you guys.
@@RehabValuator Yeah man, the big residential players are very institutional. Many of them are cooperatives. Private resi developers pretty much only build for the wealthy, its the only way to make money I figure. Maybe I should come over.
Thank you very much for this presentation. Those duplexes look real nice. Is it possible for me to get the floor plan of the 4 apartment duplex? Who are the architects?
No, sorry. I highly suggest you hire a local architect in your market to work with who understands your local zoning, building codes, architectural styles and construction methods.
Is there a way to enter my local markets cost to build per sq ft in building out my budget? Instead of entering the total sq ft of the duplex to get an estimated budget.
I'm 20 years old with a fencing company that leans mostly into gates and their openers- I'm going to build myself up alongside my career and catch up to you. I don't know how but I'll have my own companies to build my own portfolios as well. nice vid btw
Dude! You're 20 years old and already have your own company. That's fantastic. Keep going and I am sure you'll catch up to me in no time. When I was 20 I was getting drunk at college and chasing girls (most unsuccessfully). Grow the fencing company so that it generates consistent operating profits for you. Then reinvest those profits into long term assets that will grow your wealth and give you cashflow for life. Even if you start very very small but do it consistently, you'll wake up at 30, 35, 40 and be incredibly well off
Congrats on your success brother I’m also a first generation immigrant from Albania, and I have zero knowledge outside of nyc/north nj area which I think is much more expensive to find a available lot if any.
This is amazing information and thank you for being so candid. Are you penalized in any way for underbidding? Do you just explain the situation and request more money?
My construction loan is fixed going into the project so the biggest penalty is that typically budget over runs have to come out of cash (my cash or investor cash if I am using investor money, which I usually don't).
Great video, very informative. I wonder how these number come compare to my local market (Bay Area, California). I am very interested in doing this locally.
Numbers definitely will differ in CA. Rehab Valuator gives you total flexibility in how you enter your own costs and scopes of work, so you can tailor it to your market and your projects.
Great video! So the over 400k cash that you invested into the property, was that your own cash or did you have investors in say a syndicate? Im thinking that you are going to refinance in like ten years at 75% ltv?
This was my own cash. No outside investors. I should be able to refi in the next 5 years and get most of it out assuming rates are where they are now or dip
Do you do custom single family home building as well? Do you know builders in other states that do renovations to older homes that you can recommend? Do you do building in other states besides Virginia?
Good question. You can take a photo of the receipt on your phone and upload it into the software. Costs are entered manually or can be bulk uploaded from a csv (we provide you a template). So that if your bookeeper is running things in quickbooks for example, you can download them, and bulk upload into Rehab Valuator. We give you much better insights into your data than quickbooks does.
Hey I was wondering, I watched your video and took some notes . I’m wondering how does financing work when you’re trying to live in one of the duplexes and rent out the other side
Your lender would likely not give you credit for the income from the 2nd apartment so the amount of money you could borrow would go down. Unless you're financing it like a personal residence, rather than getting an investment loan. That's probably the direction I'd go in.
@@RehabValuator hey also do you have a mentorship program or anything like consultations . I understand you’re a busy man . Just want to see any possibilities .
We have a group mentorship program called Rehab Valuator Inner Circle. Meets weekly on Zoom and occasionally in person. That's probably the best place for you to start: www.RehabValuator.com/inner-circle
is it possible to get a copy of your flow plans and architural drawings and designs? I have a similar lot that's I'm looking to start developing and would prefer to leverage what you already have and no need to reinvent the wheel. Please advise and let me know what we can work out for them and needed adjustments. Thanks a lot.
Awesome video and sofrware! Thank you for your sharing Danil. I'm looking to invest new constrcution in Virginia, can you share with me which contruction team did you work with?
Great video and explanation of development. Quick question: what are your resources on where to find genuine, authentic private money lenders to fund your deals?
We actually have a fantastic course on this: ArtofPrivateMoney.com Teaches you how to find real legit lenders and build rapport with them rather than running around asking random people for money
@RehabValuator Daniil, great video. You mentioned that these were “attached duplexes”, rather than quads. Given this, were you able to build these to residential code? If so, it sounds like this could be a great way to build more than 2 units without increasing per sqft costs.
This is a GREAT question. How did you pitch the City to allow this to be built as residential building code vs. commercial? Where I'm at (Upstate SC), the cities look at anything 3 doors + as being a commercial build. Would love to hear your thoughts!
Correct. These are duplexes built on separate legal lots under separate building permits, "abutting" each other with a 2-hour fire wall between. Whether you can do this or not heavily depends on your local building department and their interpretation of the building code. There are specific requirements in our jurisdiction on how to build these and these requirements have gotten more stringent in the last year. The alternative of course is to build a bit narrower with a setback in between them but then you're losing 2-3' of width on each one.
@@BackcountryDevelopmentLLC For the gullible. It reminds me of the first snake oil sales men MEET KEVIN video "How I started to invest in real state with zero money" come to find out, he actually got a $35K family loan.🧐
Do you budget line-by-line item numbers based on your own experience or are these numbers based on the general contractors' initial estimates before you start the project?
I budget based on previous projects I've executed. Then usually I update the budget as I get bids in and finalize them. In this video I am actually comparing my original budget to what happened so the budget you're seeing wasn't fully updated with bids. Otherwise it would match up almost 100%. Hope that makes sense
Please clarify for operating costs $4440 vs gross $14800= 30%. You teach us always allow for min 35-40% operating costs. In Southern California operating costs can reach mid to high 40%
Not exactly. If you watch my other videos I always say in smaller properties like duplexes you should be operating somewhere between 30-33%. Heavily depends on how high your real estate taxes are. Larger multifam properties are 35-40% in most cases though we operate even our larger properties sub-35% typically
Were your construction loans non recourse? When you went over budget, did that money come out of pocket? So you ended up with a 75% ltv isn't that a little tight on a small construction project?
Yes that $ had to come out of my pocket. 75% cost vs value is really really good these days actually. I created 25% sweat equity, over over $500k in new wealth on the balance sheet. That's super solid for this size deal
Good question. We normally do. But in this case we built a prelim budget, started the project and then some of the actual costs were coming in in real time. On bigger projects we can get everything bid out 100% ahead of time and get GMPs
Glad you subscribed. My one on one time goes only to my kids, my wife, my employees and a few clients who pay me a lot of $$ :) But email me at daniil@rehabvaluator.com and let me know how I can help you and I'll do my best
@rehabValuator I am inspired by your videos and teaching. I just bought land for $90k in Illinois near to a hospital and wants to develop 16 unit apartment complex. Its a corner lot beautiful lot 35,000 sft. I got it rezoned to Multifamily. I would need your assistance in cost effective design and cost estimation. I tried your software couldn’t get much. Local Builders saying 2.5M atleast.
$2.5m to build 16 units sounds about right. My 16 unit I am finishing now will come closer to $2.8m. Rehab Valuator has a pre-built multifam and mixed use template in there that should give you a good starting point. From there you just need to adjust for your specific scope of work and finishes. Email me if you need help!
@@alynaveed3229 For the gullible. It reminds me of the first snake oil sales men MEET KEVIN video "How I started to invest in real state with zero money" come to find out, he actually got a $35K family loan.🧐
Curious about the use of double hung windows. We are the only country still using double hung windows in 2024. Wonder why tilt/turn windows or casement in general have slow adoption
Funny you should ask. I just finished 2 projects with casement windows and things didn't go well. They're expensive. They have detachable hardware that we have to store off-site during construction until end of project, then bring and attach, they aren't as durable as double or single hungs. You can't clean them from the inside - need ladders or man lifts after construction for 3rd floor or higher. Long term in my rental properties I think they're going to create WAY more maintenance issues than a simple product like a single or double hung. I am staying away from casements in rental product going forward
there's a new building material system that can build a way stronger house for 30% cheaper look into sabs building system and strata foam houses next time
Not really. We source from local suppliers so I am letting them worry about all that stuff. We've looked at going direct to China for some products but decided its not worth the hassle
$1k per month, $12k per year. For most people 4-5 of these duplexes and they no longer have to work a job. So yes, I think it's worth the effort if it gives you a brand new, low maintenance, attractive, easy to lease, easy to own rental property
Typically yes. We need to have all engineering and perm drawings done, then submit for permits, then break ground. But I am usually able to get reimbursed for these on the 1st draw from my lender.
I wish this could work for me. There is much I don't like about the US, but when it comes to oppertunity for stuff like this they are far superiour. I wish I could get these things going over here, but banks will lend no money and finding anything remotely fitting is very hard. The market in The Netherlands is very different and I wish it would get to be closer to what the US has.
@@RehabValuator Honestly, maybe. I am happy where I live when it comes to all other stuff, friends, family, the general public safety etc. It's mainly my more entrepreneurial side that does think about it. More oppertunity to create wealth and build stuff, less taxes etc. It's difficult.
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Leave me your thoughts, comments, questions here! And check out the links in the description above for additional training and resources.
Super valuable content Daniil!
Glad to hear it, Mike!
Daniil is very clear and concise compared to other "building experts". Daniil is unselfish with his information and time. I used the rehab valuator to do a funding request for a fix and flip. The lender immediately gave me the funding at 100%. Thank you Daniil. I look forward to doing more deals for my non-profit.
@@ynezwells7180 wow that's awesome! 100% these days is not easy to get so glad we could help with that!
If you can do duplexes, why not Fourplexes? Since you can use conventional financing up to 4 units.
Most people will never talk straight truth, including mistakes, oversights etc. Much respect for this insightfull video overview
Thank you. Mistakes are how most of us actually learn :)
CPA here, I strongly agree with @luisacosta2280’s comment. Everyone talks, very few actually walk through their real numbers and fewer ever show their budget versus actual. Refreshing video.
I bought 11 acres and building quads on them right now. I love your front & back elevations
Awesome! You can hopefully get a lot built on 11 acres
Hows your project going ?
This excellent video, with its clear analysis of your project, has now motivated me to find a piece of property in my area, about an hour and a half West of your area, and finalize a design for a duplex or triplex and begin building in the spring of next year, 2025. Thank you for that great video!
Excellent! Good luck on your journey and make sure you check back here - have a lot of additional training videos we're cooking up.
Your videos inspire me. My goal is to build a duplex before next summer.
Love it. Let's go!
Hey Daniel, your videos are packed with useful information. Thank you for your time and effort.
Yes our software is used by Canadian investors and developers all the time. The data portion for now is US only but everything else works great.
so many videos they just talk and talk and talk about fucking nothing, but here we have actually something that did and its giving us insight into how it all went. thank you for this blessing.
You're very welcome!
This was very good. I'm in the trades and I'm glad you highlighted the order of which trades follow each other, a lot of folk don't miss that important step. I'm looking to start building within the next year.
Make sure you check out the rest of our long-form content on youtube. Will definitely help you get started!
I wish you the best! I am currently doing research and hopefully in the future I will start building as well. God bless, brother.
Great job, congratulations. For the past 30 years as a general contractor I have been developing income producing properties in different cities as long as market conditions allow. I operate from Texas. I would like to share some experiences with you.
Your videos inspire me. I want to be a real state developer and I am learning so much from you
Very happy to hear that!
You’re about to change my family’s life 😢 thank you
Wow - let's hope so! Keep us posted :)
excellent video. thank you Daniil for the valuable information. you're a real deal
You're very welcome!
Thank you for sharing this with us Danill. Always looking forward to a new video from you
My pleasure!
Thank you for sharing such detail! What a blessing to have you sharing such a wealth of information!
You are very welcome!
Great video! I buy-rehab and do Short Term Rentals mainly in SE Michigan (City of Detroit and the suburbs north of there), want to transition to construction to build Townhomes in a huge lot to the side of one of my houses in Detroit, land is cheap so just have to deal with high construction costs and the rates; I also came as an immigrant at 12!
Construction costs and cost of $ is high but for sale inventory is low so hopefully you can do well with those townhomes!
Hi Daniil, awesome video on building duplexes, thanks for sharing such tremendous amount of knowledge, with that said, I’m super motived to move forward with a project of my own. I’ve been thinking about this idea for the past 2-years and recently a friend recommended your channel. I have a property with an older home (built in 1929), in the Richmond area, with a mortgage, I would like to demolition it and build a (1) duplex. I was fascinated with how you candidly laid out your Budget, under/overrun, for your construction cost, and walked us through the entire building process (AWESOME). I’m planning to use your videos and software to accomplish my goal.
However, to avoid major mistakes, as you alluded, and I was advised to start with an architecture firm in area. So, I was wondering if you could guide in the direction of a firm(s) that is fair and familiar with the zoning in the Richmond area. My hope in doing this project is to generate some great sweat equity in a fast-developing market. Thanks in advance for all your AWESOME videos and software. Best regards.
Awesome! I don't want to post any architect info publicly at risk they get blown up but email me at daniil@rehabvaluator.com and remind me of this convo and I'll see if I can refer someone.
Stumbled across your video. You're a terrific inspiration! Thank you
You're welcome!
We need something similar for commerical properties! This break was beautiful.
Working on a similar video for commercial actually!
Thanks for this valuable information, hope you the best in your business, you deserve it.
You're welcome and I appreciate the kind words!
The key to this is land acquisition. Sorry if I missed it, but is there a price per sf for land. I've done a version of this in the past wanting to get back in. Right now, I'm looking at infill with alley access. With duplex zoning approval. Great video. Keep up the good work..
I show in the video towards the end what I paid per ft for land but that's not really best way to go about determining land purchase price. Here's a longer deeper training on how to properly back into land offers: ruclips.net/video/9zjeGb74TmU/видео.html
I have already downloaded and printed out the land checklist.
.thank you!
Awesome! And you're welcome.
Hey Lisa
Hey! Love this channel, any books you would recommend? ALSO highly advise you write a “book” or a land development handbook - I would totally buy. Thanks Daniel!
Thanks for the feedback! Couple of books I like: Missing Middle Housing, Soft City, Building Small (by Jim Reid). Start with those. They focus more on housing types than teaching development or land development, but lay a good foundation for the type of development we do.
@@RehabValuatoryour content and your character are excellent. Subscribed, liked, commented… how else do we show support for you/this channel?
@@robertglover6538 that's plenty! Obviously we love to bring in new Rehab Valuator software clients if there's a need in your business but otherwise you've already done plenty!
@@RehabValuator Thank you so much for the responses Daniil. I will purchase these and read them promptly. Hope to stay in touch, thanks again for all your videos.
@@uhhcrave you're welcome!
i love your attention to detail 🤝
I appreciate that!
Daniil GREAT video...I've been viewing your videos for some time now and motivated more now than every to GET STARTED. Thank you for laying out the playbook...I already have identified three potential opportunities in my area based upon it.
That's awesome! Glad you're taking action!
$158/SF is very good. I find we are building stuff at $250/sf in SE PA(including land). Any recommendations/ categories to focus on for keeping costs down?
Seems expensive. Is this stuff you're building by residential or commercial code? Every time I am disciplined enough to go out and 3 bids on everything I end up saving money vs. going with subs and suppliers I've grown comfortable with. Value engineering your projects always pays off too. There's always ways to save without sacrificing quality.
Hi Daniil, I really enjoyed the video very informative!
Glad you enjoyed it!
Plus the depreciation on the back end w taxes… great video
Yep!
Have you built a custom home? Would love to see an in depth breakdown for a single family home. Excellent Video
We build spec houses all the time. Haven't done custom homes. It's on my list to do some videos on spec home building
Really good video. Thanks for sharing!
Glad you enjoyed it and you're welcome!
Thank you for being transparent.
My pleasure!
@ 2:36 Those are very nice looking buildings that have good character
Thank you!
This is great. The first one I seen that was not B.S. Great knowledge.
Make sure you check out the rest of the content on the channel - ton of similar videos there!
Sounds like Richmond landscaping requirements are pretty strict, however your avg rents definitely help considering those costs
Yep very true!
Great video Daniil. Thank you!!
What's up Enis. How are things in Boston? Appreciate the support bro!
I’ve watched this video so many times 🤦🏾♀️ it’s addictive
Better than being addicted to most other things! :)
Nice breakdown Daniil, I’d love to start building here in Oklahoma, how did you finance your first project, was it a single family home, new construction or fix and flip?
I got started doing single family renovations, mostly gut renovations, then scaled up
@@RehabValuator is that what you’d recommend, I’ve been in construction for over 30 years and need to make a transition from doing the work daily. Unfortunately my credit isn’t great currently.
I personally think it's a good idea to have some rehabbing experience before you dive into new construction but it's not necessary. If you've already been doing construction, what you now need is to source deals and line up $$
Daniil,
Great video and thank you for all your effort in sharing your experience. Question: I see a GC Fee of $158,900 on the expense list. Is this a plugged number to cover your in-house effort it required to GC this project, or is this 12%-13% of the total cost to build used to pay an actual GC? Thanks again for the insight on a project such as this.
Russ
Hey Russ. In this case this was $ paid out to a GC via cost +. It was actually more than 12-13% but had a cap on it so came out to that % in the end
Oh man, developing real estate seems so easy in the US!
In Germany our cost/sqft are more than double, and our rents are similar. Land is mostly more expensive as well. I wish we were allowed to be as cheap as you guys.
Everyone I talk to says developing in Europe is very difficult
@@RehabValuator Yeah man, the big residential players are very institutional. Many of them are cooperatives. Private resi developers pretty much only build for the wealthy, its the only way to make money I figure.
Maybe I should come over.
@@coolewurst-hc1rd come to the US. Plenty of opportunity here!
Well, you can go NYC and Silicon Valley to compare the costs with us.
@@RehabValuator i'm from belgium. the only way you can make money here is 1: politics and corruption in real estate and 2: build 50+units
@rehabvaluatorkindly awesome video, could you kindly tell me what software or app you are using for this budgeting
It's called Rehab Valuator. You can get more info here: www.RehabValuator.com
Thank you very much for this presentation. Those duplexes look real nice. Is it possible for me to get the floor plan of the 4 apartment duplex? Who are the architects?
No, sorry. I highly suggest you hire a local architect in your market to work with who understands your local zoning, building codes, architectural styles and construction methods.
Is there a way to enter my local markets cost to build per sq ft in building out my budget? Instead of entering the total sq ft of the duplex to get an estimated budget.
yes of course! The budget templates are 100% customizable to your specific projects and costs. You can build them out in any number of ways
I'm 20 years old with a fencing company that leans mostly into gates and their openers- I'm going to build myself up alongside my career and catch up to you. I don't know how but I'll have my own companies to build my own portfolios as well. nice vid btw
Dude! You're 20 years old and already have your own company. That's fantastic. Keep going and I am sure you'll catch up to me in no time. When I was 20 I was getting drunk at college and chasing girls (most unsuccessfully). Grow the fencing company so that it generates consistent operating profits for you. Then reinvest those profits into long term assets that will grow your wealth and give you cashflow for life. Even if you start very very small but do it consistently, you'll wake up at 30, 35, 40 and be incredibly well off
Congrats on your success brother I’m also a first generation immigrant from Albania, and I have zero knowledge outside of nyc/north nj area which I think is much more expensive to find a available lot if any.
Thank you!. There are opportunities everywhere. You just have to know where to look. Check out this video: ruclips.net/video/HU-a26ICSuA/видео.html
@@RehabValuator Ty brother
This is amazing information and thank you for being so candid. Are you penalized in any way for underbidding? Do you just explain the situation and request more money?
My construction loan is fixed going into the project so the biggest penalty is that typically budget over runs have to come out of cash (my cash or investor cash if I am using investor money, which I usually don't).
Great video, very informative. I wonder how these number come compare to my local market (Bay Area, California). I am very interested in doing this locally.
Numbers definitely will differ in CA. Rehab Valuator gives you total flexibility in how you enter your own costs and scopes of work, so you can tailor it to your market and your projects.
Hey can you do a video on every permit and inspection needed to build as well as warranty and insurance
Hard to do because it varies by county and by type of project
@@RehabValuator Okay thank you for the information, do you notice any reoccurring permits and inspections
Could you be underestimating your time managing the property (even if you are managing a manger)?
Anything is possible of course. In my case I have an in house management company that has incredible employees and requires very little oversight.
@@RehabValuator thata good. They probably only contact you when they have problems only you can solve!
@RehabValuator This was very informative Daniil. Thank you very much for putting it together.
You're welcome!
This is great! Thank you !
You're very welcome!
Great video! So the over 400k cash that you invested into the property, was that your own cash or did you have investors in say a syndicate? Im thinking that you are going to refinance in like ten years at 75% ltv?
This was my own cash. No outside investors. I should be able to refi in the next 5 years and get most of it out assuming rates are where they are now or dip
Do you do custom single family home building as well? Do you know builders in other states that do renovations to older homes that you can recommend? Do you do building in other states besides Virginia?
We don't do custom homes but do build spec homes in our company. What specific market are you in?
Can you scan receipts through the app and track costs you can drill into later? Or are the costs/receipts manually entered?
Good question. You can take a photo of the receipt on your phone and upload it into the software. Costs are entered manually or can be bulk uploaded from a csv (we provide you a template). So that if your bookeeper is running things in quickbooks for example, you can download them, and bulk upload into Rehab Valuator. We give you much better insights into your data than quickbooks does.
@@RehabValuator Awesome thank you ! I like that you can drill into each transaction
Can you post a link to the software you’re using?
It's called Rehab Valuator. You can get full test drive for 2 weeks here: RehabValuator.com/try
i found this video valuable. Wish i had a mentor to have learned this early in my life, but time to get started in this
Never too late to start. Now's as good time as any
Very nice presentation! Thanks! How many projects this software can manage?
Hi Shelly. It can manage as many projects as you like!
Hey I was wondering, I watched your video and took some notes . I’m wondering how does financing work when you’re trying to live in one of the duplexes and rent out the other side
Your lender would likely not give you credit for the income from the 2nd apartment so the amount of money you could borrow would go down. Unless you're financing it like a personal residence, rather than getting an investment loan. That's probably the direction I'd go in.
@@RehabValuator thanks so much for that input have a wonderful day
@@RehabValuator hey also do you have a mentorship program or anything like consultations . I understand you’re a busy man . Just want to see any possibilities .
We have a group mentorship program called Rehab Valuator Inner Circle. Meets weekly on Zoom and occasionally in person. That's probably the best place for you to start: www.RehabValuator.com/inner-circle
is it possible to get a copy of your flow plans and architural drawings and designs? I have a similar lot that's I'm looking to start developing and would prefer to leverage what you already have and no need to reinvent the wheel.
Please advise and let me know what we can work out for them and needed adjustments. Thanks a lot.
Plans are intellectual property of my architect. I do not sell or distribute them. Sorry.
Awesome video and sofrware! Thank you for your sharing Danil. I'm looking to invest new constrcution in Virginia, can you share with me which contruction team did you work with?
Glad you like the video! Not really able to refer my construction team at the moment though :)
Great video and explanation of development. Quick question: what are your resources on where to find genuine, authentic private money lenders to fund your deals?
We actually have a fantastic course on this: ArtofPrivateMoney.com Teaches you how to find real legit lenders and build rapport with them rather than running around asking random people for money
Hi
What is the name of the software you used ?Does it come in m2
It's called Rehab Valuator and you can take it for a full 2 week test drive here: RehabValuator.com/try
Very interesting video. Good job!!!
Thanks. Glad you liked it!
How did you produce the soft numbers to compare the final cost to? I’m a realtor that’s currently pivoting towards developing.
Quotes?
Quotes and past experience/bids
Thank you for clarification. The numbers were so low I thought maybe you did 3. (It costs 5 times more in California).
Cali is nuts
@RehabValuator Daniil, great video. You mentioned that these were “attached duplexes”, rather than quads. Given this, were you able to build these to residential code? If so, it sounds like this could be a great way to build more than 2 units without increasing per sqft costs.
This is a GREAT question. How did you pitch the City to allow this to be built as residential building code vs. commercial? Where I'm at (Upstate SC), the cities look at anything 3 doors + as being a commercial build. Would love to hear your thoughts!
Correct. These are duplexes built on separate legal lots under separate building permits, "abutting" each other with a 2-hour fire wall between. Whether you can do this or not heavily depends on your local building department and their interpretation of the building code. There are specific requirements in our jurisdiction on how to build these and these requirements have gotten more stringent in the last year. The alternative of course is to build a bit narrower with a setback in between them but then you're losing 2-3' of width on each one.
@@BackcountryDevelopmentLLC For the gullible. It reminds me of the first snake oil sales men MEET KEVIN video "How I started to invest in real state with zero money" come to find out, he actually got a $35K family loan.🧐
This was highly educational, learned a bunch.
Really glad to hear it!
Do you budget line-by-line item numbers based on your own experience or are these numbers based on the general contractors' initial estimates before you start the project?
I budget based on previous projects I've executed. Then usually I update the budget as I get bids in and finalize them. In this video I am actually comparing my original budget to what happened so the budget you're seeing wasn't fully updated with bids. Otherwise it would match up almost 100%. Hope that makes sense
Thank you for this video. very informational.
You're very welcome!
This was powerful!!! Thank you.
Glad it was helpful!
Straight Talk! Real Truth!
Always!
Please clarify for operating costs $4440 vs gross $14800= 30%. You teach us always allow for min 35-40% operating costs. In Southern California operating costs can reach mid to high 40%
Not exactly. If you watch my other videos I always say in smaller properties like duplexes you should be operating somewhere between 30-33%. Heavily depends on how high your real estate taxes are. Larger multifam properties are 35-40% in most cases though we operate even our larger properties sub-35% typically
Beautiful man - great job
Thank you!
Were your construction loans non recourse? When you went over budget, did that money come out of pocket? So you ended up with a 75% ltv isn't that a little tight on a small construction project?
Yes that $ had to come out of my pocket. 75% cost vs value is really really good these days actually. I created 25% sweat equity, over over $500k in new wealth on the balance sheet. That's super solid for this size deal
Where did you put the furnace and the hot water heater?
In a utility closet in the hallway
Did you make this spread sheet? If not can you tell me where you pulled it off of?
We made it. It's far more than a spreadsheet. See for yourself: www.RehabValuator.com
When you build a duplex together in the same structure does the make it a quad?
It looks like a quad from outside but these are on separate lots which means I can sell them separately
Would you share the floor plans??
We don't distribute our floorplans. Sorry
Did I miss how many beds/baths? If each unit is 1,200 square feet (9,600 ÷ 8 units), I'm guessing they are 2 bed 1 bath units?
Close! They're 2 bed 2 bath units. We always do 2/2. Never 2/1 or 2/1.5
Change orders aside, why don't you hold your contractors and sub to their bids and cap overages?
Good question. We normally do. But in this case we built a prelim budget, started the project and then some of the actual costs were coming in in real time. On bigger projects we can get everything bid out 100% ahead of time and get GMPs
Can you share how to get the new construction loans? Thanks
Check out this training: ruclips.net/video/EFOJ18FluYU/видео.html
Nice work! Would love to learn from you!
Make sure you join our email list. There are lots of different opportunities to learn
30 seconds in the video I subscribed! What are the chances of getting on a phone call with you for 10 minutes?
Glad you subscribed. My one on one time goes only to my kids, my wife, my employees and a few clients who pay me a lot of $$ :) But email me at daniil@rehabvaluator.com and let me know how I can help you and I'll do my best
Are you factoring in buying the previous building that you demolished?
Yep I go over demo costs in the video
Such a good video, I plan on getting your gullies as well, thank you
I am not sure what "gullies" is but I am glad you liked the video! :)
@@RehabValuator guides, software.. typo. Thank you
What software did you use to produce renderings of the property?
My architects produce renderings. I am honestly not sure what they use.
Do you build out of your state as well or just on your local market?
Just in our local market
Outstanding
Gracias!
@rehabValuator I am inspired by your videos and teaching. I just bought land for $90k in Illinois near to a hospital and wants to develop 16 unit apartment complex. Its a corner lot beautiful lot 35,000 sft. I got it rezoned to Multifamily. I would need your assistance in cost effective design and cost estimation. I tried your software couldn’t get much. Local Builders saying 2.5M atleast.
Can you also share the cost of your mixed use 16 unit which you mentioned in video
$2.5m to build 16 units sounds about right. My 16 unit I am finishing now will come closer to $2.8m. Rehab Valuator has a pre-built multifam and mixed use template in there that should give you a good starting point. From there you just need to adjust for your specific scope of work and finishes. Email me if you need help!
@@alynaveed3229 For the gullible. It reminds me of the first snake oil sales men MEET KEVIN video "How I started to invest in real state with zero money" come to find out, he actually got a $35K family loan.🧐
I’m working on a project in Illinois from a financing perspective.. let’s chat
Great content. Thanks
Glad you liked it!
Curious about the use of double hung windows. We are the only country still using double hung windows in 2024. Wonder why tilt/turn windows or casement in general have slow adoption
Funny you should ask. I just finished 2 projects with casement windows and things didn't go well. They're expensive. They have detachable hardware that we have to store off-site during construction until end of project, then bring and attach, they aren't as durable as double or single hungs. You can't clean them from the inside - need ladders or man lifts after construction for 3rd floor or higher. Long term in my rental properties I think they're going to create WAY more maintenance issues than a simple product like a single or double hung. I am staying away from casements in rental product going forward
@@RehabValuator hmm interesting. I haven't heard of maintenance problems with Tilt Turn windows in European countries/China/South America. Thanks!
there's a new building material system that can build a way stronger house for 30% cheaper look into sabs building system and strata foam houses next time
have u considered replacing imports from China to FTA countries, saving duties of varying rates
Not really. We source from local suppliers so I am letting them worry about all that stuff. We've looked at going direct to China for some products but decided its not worth the hassle
Great looking buildings
Thank you!
is your square footage number based on under roof or heated?
Just heated
Keys to Success
💪
would it be worth it to build just one duplex if after all that effort the cash flow is only $1000 a month pre tax?
$1k per month, $12k per year. For most people 4-5 of these duplexes and they no longer have to work a job. So yes, I think it's worth the effort if it gives you a brand new, low maintenance, attractive, easy to lease, easy to own rental property
Daniil, do you have to pay all or most soft costs before breaking ground? For example, engineering, permits. Thanks.
Typically yes. We need to have all engineering and perm drawings done, then submit for permits, then break ground. But I am usually able to get reimbursed for these on the 1st draw from my lender.
Do you have floor plans available .
We don't distribute our plans. Sorry.
Thank you.
You're welcome!
I wish this could work for me. There is much I don't like about the US, but when it comes to oppertunity for stuff like this they are far superiour. I wish I could get these things going over here, but banks will lend no money and finding anything remotely fitting is very hard. The market in The Netherlands is very different and I wish it would get to be closer to what the US has.
Move to the US! :)
@@RehabValuator Honestly, maybe. I am happy where I live when it comes to all other stuff, friends, family, the general public safety etc.
It's mainly my more entrepreneurial side that does think about it. More oppertunity to create wealth and build stuff, less taxes etc. It's difficult.
You should build with light gauge steel instead of wood.
Noted!