One of the best build operations I've been aware of is Budget Suites Inn . Each crew had one job every day . Each framing crew had their floor to complete each day . It was run like a production line .
Hey Ken and Ross. Thanks for doing this. I am currently in the process of starting a semi detached and a duplex. You guys are correct from the finding, funding, sequence, and building of the team. All the information is out there and if you work with the city they will actually show you what to do. Be patient but it will get done. As you said they make money either way and forever through property tax. Great advice and I would love to visit a project with you as eventually I would like to go multi unit, low rise... and one day a skyscraper! All the best!
Awesome. Love your videos Ken. Would be excellent to see a part II here with Ross talking about how to get good at pre-dev activities like building pro-formas and where to find the data you typically need.
This is so valuable! I want to hear more from a project management perspective. I am in project management but on the business and IT side. Never dabbled in construction. But one day, I would like to develop my own multiplex home to house my family. Great stuff and lots of good valuable and important information such as municipal fees and infrastructure cost when considering additional units.
Thanks, Ross for chiming in here. Thanks to both of y'all for anchoring the discussion around the actual realities of the AZ market. It's a shame Flagstaff can't afford your level of support. As a casual observer, site developers should also be acutely aware of prevailing cultural vibes surrounding institutions like University of AZ, Flagstaff, before building something better suited for west LA.
Years ago, a typical 200 unit project was usually a 12 month job. Difficult site conditions can extend that time frame. The leasing office can usually be popped out in 6-8 months. Having a great group of MULTIFAMILY skilled subs is a huge benefit. Most projects I managed in the last several years, were arranged such that the lender disbursed payments based on exact sub/supplier draws. Gen Conditions was usually a flat, monthly fee for each month. Sometimes varied based on the lender.
Thank You both very much, I will check out the reference material that you provided. It would be nice to see the next steps that you use to decide either to build or to buy existing units, "maybe it is just to keep a mix investment strategy". One of the reasons that I see it is more of a long term pay out, "big increase in equity once project is stabilized" and then Refi to collect increase equity and then start collecting long term CF on property.
I retired from 35 years in multifamily construction, mostly in TX. Seems like today the material prices are so high, and subcontractors prices are higher than ever. With this downward spiraling economy, how do the numbers make sense?
Ken, do you know any videos or acronym sheets for vocabulary to learn for commercial real estate development? I need to learn terminology so when I am on sites I can talk the talk and walk the walk.
If I was planning a new construction multiple family complex I would look into Modular Construction. Less contractors to deal with and project goes up quickly with quality.
I invested into a modular factory S2A Modular partial ownership and it's ready for production in Spring of 2022. I want to learn the financing side as a developer
So when you’re Analyzing land with plans included how would you know the price for the land is good, would I just find out the rents for the units and operation cost for the building?
Thanks Ken and Ross, this has been super helpful as I am getting starting in my development career. I am building a 16 unit apartment complex in a rural area. My biggest problem has been finding architects and builders. Do you have an example spreadsheet yof the pro format budget you mentioned in the video?
I may be coming into some large amounts of money in the next couple years so I'm trying to learn as much as I can about real estate and development. I really want to get into commercial real estate and this video helped me out a lot thank you! If anyone has ANY resources they would recommend to me please do. I'm trying to be prepared for when I have the money available.
With the ability of the government to stop evictions, will the inventory of apartments go down as we’ll think twice about ROI when the government, at a whim, can stop evictions?
Ken, let's revive this strategy. I'm a builder and it's cheaper for me to build than to buy right now. What are your thoughts about this in our current economic condition? I'm doing townhomes now but looking at building apartments next.
I am about to do my first build myself, I think how bad could it be ? How is this a bad idea ? Once I finish my first two builds, I know I will learn and every build will get easier due to my experience
Where can i find the contractors/builders who will give you that $3 million quote for 96 unit build? Or better yet where i can find a collection of lots bunched together (over 10-20 lots) thats prime for development.
Ken, do you find building more worthwhile of your time and investment than buying under performing units and renovating? I've been doing renovations for years but can't seem to find anything but really small properties that cash flows anymore, even after a renovation bump.
Hey guys. Great video. So question: you guys don’t see distress in the MF market coming? Also is there a unit limit either to few or too many in your view? Also what are you seeing on the lending side term cost and equity wise?
Hello ken how are you thanks for the info. I just got my LLC RENOVATION and i would love to work with multifamily. . how can i get to work or find the owner or projects ??
Hey guys, if you were to start from the ground up with the long term goal of being a Multifamily construction contractor, is there a subcontracting background that has a more a more advantageous grasp of the process and flow? Concrete? Framing? Electrical? Thanks for the great content!
So ken, how can you as an individual actually get started? Work for a land acquisition team? Find an investor that is already going and be an understudy?
Agreed. Don't hire a home builder, or a commercial contractor to build a multifamily job. Same is true for ALL divisions of subcontractors. And partially true with material suppliers.
Nice info but what about zoning? That's an important part. I've been looking at starting with 4 unit properties in rural areas on multiple lots. So the zoning requirements for that opposed to a 2 or 3 story apartment building are different. How hard is this part of the battle? Are you having to convince municipalities to allow variances or approve projects Constantly or rezone? Or are you buying property with the appropriate zoning off the getgo? To me that's the most confusing part.
Can’t you convert commercial office space to apartments because that’s what’s going to be available or are they tear downs and rebuild. All along Irvine Blvd in Tustin ,Ca empty commercial for lease. Maybe one could a homeless shelter and some make into apartments, townhouse style, most popular for higher density. Orange Co CA very nice area
They are wrong about housing befits as a revenue for cities. They cost more in services than they pay but in the end it is about balance of business and residential.
Hello Ken, thank you for your videos, its very inspiring and encouraging. How can you make sure that you can build desired property type, before you purchase land?
@13:33 Contact city's parks & planning office regarding zoning. Finely *speculating* when you're *looking@,* the topography of the land is critical! So, *ALWAYS* 18:18, specializing in "said" project type.
Hey Ken, great video thanks so much. Do you (and MC) offer a class or training course on this material? Basically take everything you guys have learned over your careers and turn it into a trainable/repeatable process that you can formalize and instruct people with? Thx again.
Hey Demetrios! I've written several books relating to my real estate experience which you can find at this link: kenmcelroy.com/books/ I do have a website with a video library that cover various issues. I am also currently producing a class based on my first book "The ABCs of Real Estate", which I will be releasing this fall, so keep an eye out for that. In the meantime, thanks for watching and commenting on my RUclips videos.
@@KenMcElroy Sounds good! At the moment I am trying to figure out the blueprint for an apt dev opportunity but like you are talking about in the video, you have to have know the players and then manage the whole thing. There are several gaps in my knowledge that I need to get the answers to.
Love you ken and I watch every day, HOWEVER, you skipped the Most Important issue. The out of control cost of building materials making every project come in over budget by a lot! Plus, what about the extreme labor shortage making us needing to pay much higher wages to those who do work. My broker said "the reason there is very little new construction is because the numbers don't pencil out in the end." Reno, NV
Blah, blah, blah...there’s nothing important in what you’re saying! You are not even talking about projection and growth in correlation with population into a the suburban area.
Real estate has changed my life. Actually we are about to do 5 new construction property this month. Keep winning Ken
Thanks Jordan! Good luck with your new construction projects.Keep up the good work.
@@KenMcElroy Thanks Ken For Thanking Jordan! Good Luck To You!
@@saivanguru5327 Thank you Sai for Thanking Divine for Thanking Ken for Thanking Jordan
One of the best build operations I've been aware of is Budget Suites Inn . Each crew had one job every day . Each framing crew had their floor to complete each day . It was run like a production line .
Hey Ken and Ross. Thanks for doing this. I am currently in the process of starting a semi detached and a duplex. You guys are correct from the finding, funding, sequence, and building of the team. All the information is out there and if you work with the city they will actually show you what to do. Be patient but it will get done. As you said they make money either way and forever through property tax. Great advice and I would love to visit a project with you as eventually I would like to go multi unit, low rise... and one day a skyscraper! All the best!
I really liked this episode... there should be a part 2 of this.
Ken any chance you can talk about the Australian Realestate market foreclosures
Love the video
I agree. Really informative.
Awesome. Love your videos Ken. Would be excellent to see a part II here with Ross talking about how to get good at pre-dev activities like building pro-formas and where to find the data you typically need.
This is so valuable! I want to hear more from a project management perspective. I am in project management but on the business and IT side. Never dabbled in construction. But one day, I would like to develop my own multiplex home to house my family. Great stuff and lots of good valuable and important information such as municipal fees and infrastructure cost when considering additional units.
Thanks, Ross for chiming in here. Thanks to both of y'all for anchoring the discussion around the actual realities of the AZ market. It's a shame Flagstaff can't afford your level of support. As a casual observer, site developers should also be acutely aware of prevailing cultural vibes surrounding institutions like University of AZ, Flagstaff, before building something better suited for west LA.
Years ago, a typical 200 unit project was usually a 12 month job. Difficult site conditions can extend that time frame. The leasing office can usually be popped out in 6-8 months. Having a great group of MULTIFAMILY skilled subs is a huge benefit. Most projects I managed in the last several years, were arranged such that the lender disbursed payments based on exact sub/supplier draws. Gen Conditions was usually a flat, monthly fee for each month. Sometimes varied based on the lender.
Great intro to apartment development. Thanks from New Zealand.
Thank You both very much, I will check out the reference material that you provided. It would be nice to see the next steps that you use to decide either to build or to buy existing units, "maybe it is just to keep a mix investment strategy".
One of the reasons that I see it is more of a long term pay out, "big increase in equity once project is stabilized" and then Refi to collect increase equity and then start collecting long term CF on property.
"Guys who specialize in apartments" 💯 as an Electrician in this exact field, very true. 👍
Great information
I retired from 35 years in multifamily construction, mostly in TX. Seems like today the material prices are so high, and subcontractors prices are higher than ever. With this downward spiraling economy, how do the numbers make sense?
Inflation 👎
Such good information!!! Thank you so much. I felt like I got so much experience just listening.
Amazing insight. I really appreciate your transparency. I’m going to have to make time to watch every single video you’ve made 😅
Ken, do you know any videos or acronym sheets for vocabulary to learn for commercial real estate development? I need to learn terminology so when I am on sites I can talk the talk and walk the walk.
Yes! Great info from the pros. Keep the education coming. Thanks
If I was planning a new construction multiple family complex I would look into Modular Construction. Less contractors to deal with and project goes up quickly with quality.
When this modular apt housing started, it was often called "stack-a-shack" construction. FYI
I invested into a modular factory S2A Modular partial ownership and it's ready for production in Spring of 2022.
I want to learn the financing side as a developer
What a great podcast episode!
Thank you!
Another excellent video! Very informative. Thanks Ken.
So when you’re Analyzing land with plans included how would you know the price for the land is good, would I just find out the rents for the units and operation cost for the building?
Thank you for this! Any books you Ken or your Partner Ross can point me to, to learn more and get more informed on this?
Thanks Ken and Ross, this has been super helpful as I am getting starting in my development career. I am building a 16 unit apartment complex in a rural area. My biggest problem has been finding architects and builders. Do you have an example spreadsheet yof the pro format budget you mentioned in the video?
Thanks guys!
Really well done, thanks for sharing your experience.
I may be coming into some large amounts of money in the next couple years so I'm trying to learn as much as I can about real estate and development. I really want to get into commercial real estate and this video helped me out a lot thank you!
If anyone has ANY resources they would recommend to me please do. I'm trying to be prepared for when I have the money available.
Thanks Ken and Ross, great content as always!
Thank you Ken
You are very welcome Sebastian!
Will Apartment landlords increase rents to cover the costs of eviction moratoriums?
Thank You
With the ability of the government to stop evictions, will the inventory of apartments go down as we’ll think twice about ROI when the government, at a whim, can stop evictions?
Ken, let's revive this strategy. I'm a builder and it's cheaper for me to build than to buy right now. What are your thoughts about this in our current economic condition? I'm doing townhomes now but looking at building apartments next.
I am about to do my first build myself, I think how bad could it be ? How is this a bad idea ? Once I finish my first two builds, I know I will learn and every build will get easier due to my experience
This was real good
Where can i find the contractors/builders who will give you that $3 million quote for 96 unit build? Or better yet where i can find a collection of lots bunched together (over 10-20 lots) thats prime for development.
WOW GO ON AND GO PLEASE, GREATERS VIDEO EVER
Thanks Jonce81! I appreciate it.
@@KenMcElroy watching your videos inspire me to invest and teaching about infinite returns i never through. Thank you
100% agree!
Ken, do you find building more worthwhile of your time and investment than buying under performing units and renovating? I've been doing renovations for years but can't seem to find anything but really small properties that cash flows anymore, even after a renovation bump.
Hey guys. Great video. So question: you guys don’t see distress in the MF market coming? Also is there a unit limit either to few or too many in your view? Also what are you seeing on the lending side term cost and equity wise?
Awesome work
Hello ken how are you thanks for the info. I just got my LLC RENOVATION and i would love to work with multifamily. . how can i get to work or find the owner or projects ??
Hey guys, if you were to start from the ground up with the long term goal of being a Multifamily construction contractor, is there a subcontracting background that has a more a more advantageous grasp of the process and flow? Concrete? Framing? Electrical? Thanks for the great content!
My advice would be wood framing, but the MEP trades are nearly as important.
excellent
So ken, how can you as an individual actually get started? Work for a land acquisition team? Find an investor that is already going and be an understudy?
Very insightful. How much Capital would I have to have in order to make a down payment if I were to get a loan to build an apartment complex?
This was amazing
Agreed. Don't hire a home builder, or a commercial contractor to build a multifamily job. Same is true for ALL divisions of subcontractors. And partially true with material suppliers.
Nice info but what about zoning? That's an important part. I've been looking at starting with 4 unit properties in rural areas on multiple lots. So the zoning requirements for that opposed to a 2 or 3 story apartment building are different. How hard is this part of the battle? Are you having to convince municipalities to allow variances or approve projects Constantly or rezone? Or are you buying property with the appropriate zoning off the getgo? To me that's the most confusing part.
KEN how can I get advise from you and Ross for 3 commercial lots based in Houston Tx. Pls guide asap. Previously and apartment building.
Great video thanks!
I know of a great location that is for a steal, and it's next to water. 34 acres. Would love to discuss with you.
@Ken McElroy
Should Mr McCallister's statements from 20:25-20:55 be on a continuous 🔄 or 🔃 or 🔁 *or...* would a L💫💫P, be ok?
Hi, how do I find out info on a new apartment building being built in my town?
Can’t you convert commercial office space to apartments because that’s what’s going to be available or are they tear downs and rebuild. All along Irvine Blvd in Tustin ,Ca empty commercial for lease. Maybe one could a homeless shelter and some make into apartments, townhouse style, most popular for higher density. Orange Co CA very nice area
They are wrong about housing befits as a revenue for cities. They cost more in services than they pay but in the end it is about balance of business and residential.
Hey I'm working on getting up a big project together zoned for 260 units I need guidance please!
I need your expert advice on building a new condo complex..
You might wanna by Brea Mall Brea CA and convert into Warehouse or will malls be tear downs and rebuild?
Buy*
How do loans work for new constructions? Let's say I wanted to build a rental property worth $10 million? In southern California.
Any advice for small scale. 1 building. 6 units.
Hello Ken, thank you for your videos, its very inspiring and encouraging. How can you make sure that you can build desired property type, before you purchase land?
@13:33 Contact city's parks & planning office regarding zoning.
Finely *speculating* when you're *looking@,* the topography of the land is critical! So, *ALWAYS* 18:18, specializing in "said" project type.
Hey Ken, great video thanks so much. Do you (and MC) offer a class or training course on this material? Basically take everything you guys have learned over your careers and turn it into a trainable/repeatable process that you can formalize and instruct people with? Thx again.
Hey Demetrios!
I've written several books relating to my real estate experience which you can find at this link: kenmcelroy.com/books/
I do have a website with a video library that cover various issues. I am also currently producing a class based on my first book "The ABCs of Real Estate", which I will be releasing this fall, so keep an eye out for that. In the meantime, thanks for watching and commenting on my RUclips videos.
@@KenMcElroy Sounds good! At the moment I am trying to figure out the blueprint for an apt dev opportunity but like you are talking about in the video, you have to have know the players and then manage the whole thing. There are several gaps in my knowledge that I need to get the answers to.
Love you ken and I watch every day, HOWEVER, you skipped the Most Important issue. The out of control cost of building materials making every project come in over budget by a lot! Plus, what about the extreme labor shortage making us needing to pay much higher wages to those who do work. My broker said "the reason there is very little new construction is because the numbers don't pencil out in the end." Reno, NV
The ads really took a lot away from the video. Oh well still a good conversation
What is spec homes Any videos ?
So anybody can have their own apartment complex building?
Im getting started should i choose a condo??
I love you so much
I would like to get in contact with Ross McCallister for and advice and possible project... may I get his email?
👍🏻👍🏻👍🏻
That’s not helping I need a good affordable builder in CT for me n kids not for profits
too many pop up commercials
You can upgrade your you tube with no commercials at a monthly fee Alice.
😂😂😂😂
Blah, blah, blah...there’s nothing important in what you’re saying! You are not even talking about projection and growth in correlation with population into a the suburban area.