New construction rentals are an enigma to many real estate investors. 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.
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Join the Real Estate Rookie Facebook Group:
https://www.facebook.com/groups/realestaterookie
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Join the Real Estate Rookie Bootcamp Waitlist:
http://biggerpockets.com/bootcampwaitlist
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Follow Donovan on Twitter and Instagram:
Twitter: @donovanbuilds or https://twitter.com/donovanbuilds
Instagram: @donovan_651 or https://www.instagram.com/donovan_651/
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Grab “The Book on Managing Rental Properties”
https://store.biggerpockets.com/products/the-book-on-managing-rental-properties
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Websites Mentioned by Donovan:
Roomies: https://www.roomies.com/
Law Depot: https://www.lawdepot.com/
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Lease Agreements from BiggerPockets:
https://www.biggerpockets.com/property-management-tools#lease-agreements
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Follow Ashley and Tony on Instagram:
@wealthfromrentals or https://www.instagram.com/wealthfromrentals/
@tonyjrobinson or https://www.instagram.com/tonyjrobinson/
Episode 123
Show notes at: https://www.biggerpockets.com/rookie123
0:00 Intro
3:56 Ditching High-Rise Rent to House Hack
11:29 Can't Afford a House? Buy the Land!
15:00 Finding Contractors to Make the Build
19:14 Advice for Rookies Pursuing Development
21:37 Permits, Engineering, Contractors & More
32:46 Exit Strategies
34:30 Renting Your Car for Extra Cash
37:29 Mindset Segment
39:22 Rookie Request Line
41:23 Random Questions
46:12 Rookie Rockstar