Transcription
Yo, what's good y'all? It's Abram Mitchell here and if you clicked on this video, you are obviously interested in building a multiseigure development company and luckily you have clicked on the correct video.
So, um, who am I? Again, my name is Abram Mitchell. I've built over 45 new construction homes, total over $40 million in value of construction. So, I'm extremely qualified to talk about what I'm about to talk about. Okay.
If you're watching this video, you may already have some experience in real estate. You may not. You may have some business experience. Obviously, you have an appetite for success. And when it comes to real estate development, I like to break down real estate in four sectors. So, freshman year is wholesaling. Sophomore year, you're doing some fix and flips. Junior year, that's when you're doing some buy and holds. And then senior year is development is for the big boys and girls. I know we got some ladies watching this video, but at the end of the day, development is the highest risk and the highest reward in real estate. So, what does that mean? You better know what you're doing if you're going to get into this game. Okay.
What I'm going to lean on today is three things that you need to get good at if you're going to be profitable on development deals, on new construction deals, on new builds. I'm going to talk a little bit about the ups and downs, you know. So, make sure y'all got your notebooks out. Make sure that you're paying attention, taking notes, and if you get any value out of this video, please share it, please like it, get it out there.
So, like I said, I like to break this down into about four different topics. So, the first one that I'm going to break this down with is finding deals. Okay, this one right here is probably I'mma put a star about it because it's probably going to be one of the most important portions of your career when starting off. Just think about it. It don't matter if you're doing a wholesale deal. It don't matter if you're doing a fix and flip deal. It don't matter if you're doing a buy and hold deal. Doesn't matter if you're developing and building new construction. Every single real estate deal starts with somebody finding the opportunity. Okay? You can't build a house without land. You can't wholesale a deal without a contract. You can't fix and flip a property without a property. And you can't buy a property and put somebody else into it to rent it without actually having a property, without actually having a roof to put over that person's head. So, one of the most important things that I do today for my company is consistently find deals, consistently find opportunities. Okay? In real estate, you'll see somebody refer to this as their pipeline. Okay? Excuse my handwriting, y'all, but you get the picture. pipeline, pipeline, pipeline. Okay.
Now, of course, if you're gonna find good deals, you got to also know what a good deal looks like. Okay. So, I'mma get straight to it. Whenever it comes to finding infield development, that's what we talking about today. So, infield development, we'll put the definition on the screen. That's whenever you're finding underutilized lots in a neighborhood. And the main thing that you need to know about infield development is you already got your utilities, you already got your streets, you already got your electrical, sewer, you have everything in place. So you could simply buy the lot, get your permits, and then start building the house on it. Start going vertical. That's what we talk about in the development world. So, okay, when it comes to finding deals and building your pipeline, you got to know what you're looking at. Okay.
So, when it comes to buying infield development deals, I want to purchase my land between 10% and 20% of my exit value. So, I'mma put ABV A as an apple for after build value. ABV stands for after build value. All right. So, we're talking about infill lots here. So, if you want to buy a lot and you want to make sure that you're profitable on your deal, you're going to need to buy that thing between 10 and 20%. Of course, you get a lot at 5% of value. If you can get a lot for free, then hey, we want steals, not deals. Emphasis on steals. But this is a good rule of rule of thumb, 10 to 20% of ABV, after bill value.
So, why where do you start? You know what's the first thing that you want to do whenever you have a opportunity sent your way or you're scanning the market, you see an opportunity on the market listed or a wholesaler sends you a potential land deal or potential tear down. Well, you want to start with this number right here, the ABV. Okay? Once you can lock down the after build value, then everything else becomes easier. All right? We're going to reverse engineer the deal from this number right here after build value. Okay.
So, how my process goes is let's say I get an opportunity to buy a lot and you know they send me the lot at $150,000. I'm just using random numbers right now. Okay. But let's see. Say I get an opportunity sent to me at $150,000. Okay. So, somebody sent me a piece of land and the price that they wanted for it is $150,000. Okay. I'm going to get on the market and I'm going to look at platforms like the MLS, of course, first. MLS is the best platform where you can run comps. Zillow, Red Fin, pretty much. I'm going to use platforms where it gives me historical data of what houses sold for. Okay. So, good rule of thumb when it comes to running comps, I never go over a mile radius. I'm always going to compare new construction to other new construction counts. I'm not going to go outside of my neighborhood. And I want to generally compare properties that have the same size and same bedroom and bathroom count. Now, of course, sometimes you might have a property that's 500 ft feet more, 500 ft less. You know, you might not find everything that's the same exact size. And that's why we start looking at the price per square foot. Okay? We like to look at, hey, if I go into this neighborhood, can I exit at $250 a square foot? Can I exit at $300 a square foot? You know, what can I exit at? Okay, so let's say I was sent a lot at $150,000 and I start running my comps on the market. And whenever I run my comps, I see that I can build an house and sell it for $550,000. My ABV, my after bill value is $550,000. That came from me scanning the market and adhering to my rules that I just mentioned and making and and once I got my average of $550,000, that's my after bill value. So, is this a good deal or not? Well, let me whip out my calendar my calculator. Let's see. So, if I take the number $550,000 and multiply it times 20%, that gives me a max offer, a max value of $110,000. So, $150,000 is not going to work because the most I could pay 550,000 multiplied times 20% is $110,000. That is the most I will pay on this property. So, what does that let you know? You got to negotiate. Okay. So, if this deal is sent to me at $150,000, I'm going to come back in and I'm going to offer somewhere between I said between 10 and 20% is what you want to buy your land for. So, I'm going to offer somewhere between 55,000 and 110,000. Okay? So, my number that I have to agree on with the seller of this property is going to fall between 55,000 and 110,000. Now, as a negotiator, as a dealmaker, I'm going to start lower, you know, and why am I going to start lower? Because let's say there's a house on this property that I have to tear down. That may cost me, you know, $8,000, $10,000. Let's say there's trees on this property that I have to tear down. Then okay, that's an additional cost that's outside of construction, you know. So although we want to fall within this range of 10 to 20% of value, there are a few factors that makes me want to negotiate more closer to the 10%. And those factors are, do I have to tear a house down? Do I have to tear trees down?
Another thing that you need to be able to verify whenever you're analyzing your land is your sewer and water maps. Okay? So, in order to get access to your sewer and water maps, I want you to contact your Metro Water, your Metro Sewer Department, Metro Water Department. All you got to do is go down to your codes and planning office, wherever you're looking to buy that land at. Okay? Where I'm at is Davidson County. Okay? Nashville, Tennessee, Davidson County. That's mostly where I'm doing my builds at. Now, let's say I drive 30 minutes south, then I'll be in Williamson County. And that's a whole another process. You know, wherever you're at right now, wherever you're looking to build, I would definitely definitely recommend that you start going down to your codes and planning office and getting access to metro, getting access to planning, getting access to zoning, cuz these people will be your best friends whenever you're trying to determine what you could build on a lot. Okay. So, I'm going to shoot off an email to my Metro Water Department and I'm going to ask them for my sewer and water maps. Okay.
So, once I get my sewer and water maps, I'll put an example on the screen. Okay. Pretty much what you're looking at on the screen is an example sewer and water map and the green line is the sewer line. The blue line is the water line. The things that I'm trying to verify is one, is it accessible to my property? Can I easily hook up to it? How you determine that is, is it running horizontal to your property to where now you just connect to the sewer line? And the same thing for the water line. Let's say you did not have a line running in front of your property. Let's say it was running down the street somewhere. Then that means you'll have to do an extension and that could be too costly for your deal. So, the first thing I want to verify is, hey, is there a sewer line that I could connect to? The second thing I want to verify is, is this sewer line running through my lot or not? Because whenever there's a utility on your lot, then there's something called an easement. Okay? I'll put the definition of an easement on the screen. So, pretty much to sum it up, a easement is something you cannot build on. Okay? So, I'll tell y'all a quick story. I had this property that I bought in 2024 that actually had a sewer line running through it. And I'mma put it on the screen for y'all so y'all can see. So over on the right side of the property, you can see there was a sewer line running down the property line. Okay, how did I know that? Before I put this property under contract, I requested the sewer and water maps and I seen, okay, there's a sewer line running down the side of the property. So whenever I made my offer, I made it contingent upon locating the exact location of that sewer line because like I mentioned, you have an easement when there's a sewer line on the property. So what does that mean? You cannot build directly on it. The rule over here for this lot that I bought is I could not build within a 20 foot radius. So what does that mean? On the right side, I got to be I can't be within 10t of it. And on the left side, I can't be within 10 foot of it. So that means my building envelope is affected by that sewer line. So what I did was I called 811. I'mma write that right here on here on the screen. I called 811 and pretty much that number is a number you could call and whenever you feel like there's a utility on your property, they will come out and they will locate that utility for you. So, whenever there's a situation where you think there's a utility on your property or the sewer and water map show a line running through your property, then the next thing you need to do is call 811 so they can actually locate it. Because those maps, it's it's just a map. It's not going to be 100% accurate. You know, it could be a little bit off. So, whenever I call 811 dig, I'll put a little video cuz I was out there and this is me with the flag. So, those green flags that's on the video, you can see they actually marked out where that sewer line was located. Okay. So, now I know exactly where this sewer line is located on my lot. It turned up that the lot, the sewer line was about 10 foot on my lot. So now I got a 50 foot lot, but only 40T of it is usable for my new build. So that mean I couldn't build a house as wide as I wanted to because I got to adhere to setbacks and I got to adhere to the sewer line requirement, you know. So if I did not have a sewer line on my property, I got a 5ft set back on the right, I got a 5ft set back on the left, I could build a property that is 40 foot wide with a 50ft lot. But since I had a sewer line that was encroaching onto my lot at least 10 to 12 ft, I only was able to build a 37 foot wide house on this lot. Okay. Now, let's say the sewer line went directly down the middle of the lot. I wouldn't buy that deal because in order for me to build on that property, I would have to reroute the sewer line and those cost would make that deal not profitable. Okay? So this 10 to 20% number is assuming there's not any other unforeseen or there's not something else that could add to the cost of the project. Okay? So at the end of the day, you want to be able to request those sewer water maps so you can get your eyes on those and determine, hey, rule out any easements or if there's a potential easement, make sure it does not affect the characteristics of what you're going to build to the point where it's not a profitable deal. Okay?
So, I ended up buying that deal for $145,000. I spent about $525,000 building the house. Here's the house on the screen. I sold that house for $900,000 and I walked away with a check for about $188,000. So, it was a very profitable deal. It took me about seven months to do it. I actually pre-sold the house. So, at the end of the day, you know, whenever you're building new construction, you should always look to make a six figure profit on that deal. Okay?
If I was only like left with one of them to be my superpower, it would be finding deals. Like finding deals, finding opportunities is the thing that I would want to do the best is what I currently do the best for my company. Finding deals will help you keep a a full pipeline. You want to buy deals whenever it comes to infield development between 10 and 20% of the after build value. Let's say a lot was sent to you for $150,000 and you could sell a house for $550,000. Um 150 wouldn't work. So, I would negotiate that lot anywhere between 55,000 and 110,000. Okay. Now, who are the people that you're going to find deals from? Wholesalers and realtors. Okay. I started off as a wholesaler. So, whenever I got into new construction back in 2021, I was sourcing all of my deals. Then, I built up a name to where wholesalers and realtors send me opportunities pretty much every day at this point. Okay. So, I look at probably about 50 plus lots before I buy one. But again, this is not a wholesale deal where you're making like 10 to 15,000 or a fix and flip where you might make 30 to 50,000. This is a new build where you're making six figures minimum on these plays. I've had new development plays where I netted over $500,000. So, it's definitely worth it, y'all.
All right. So, the second thing that you're going to need to get good at if you want to build a development company is you're going to have to have the money. So number two is fund funding the deals. Okay. Now everybody that's watching this, this is like the number one question I get asked. This is like the number one thing that y'all feel like is stopping you from getting into new construction. But I'm going be honest. The skill set is what's stopping you. You know, because at the end of the day, you can convince pretty much anybody to give you the money. But if you don't know what you're doing with the money, you're gonna lose the money and you'll never get that opportunity again. But I understand we on the outside looking in why funding could be the most intimidating part of this process because I share that with y'all. I remember back in 2021 when I got into my first deal, I did not know how I was going to get the money for the property. Okay? And I end up I was wholesaling at that point. I had this deal that I put under contract and I knew that I could build on it and I remember sending it off to one of my friends and I'm like I could build on this property, right? He's like yes. And then I'm like, "So, should I like do this deal?" And he's like, "Yes." I'm like, "Well, how I'mma do this? How I'mma get the deal funded? How I'mma, you know, get it built?" But the main thing I was worried I was worried about is how I'm going to get the money to fund this deal. And he was like, "Figure it out." You know, whole time I already was connecting with a banker that lived in the highrise I was living in at the time. And that banker ended up funding that deal, you know. So, at the end of the day, funding could be intimidating, but it's not really that hard once you understand it. Once you do it one time, once you start building the relationships. Okay.
So, there's two main ways that you could fund a deal. It's going to be through a bank or a hard money lender. And I'mma put HML for hard money lender. Okay? Usually, you're going to fund the deal through a bank or a hard money lender. And a bank is probably going to be the hardest part for it starting off. Again, I got another story for that. I remember few years ago when I was getting started in the construction space and I went into this bank, you know, one of my developer friends that, you know, is older than me. He let me know that he was getting his deals funded by a bank that I'm not going to mention right now because I do do business with them now. But I remember walking into that bank, you know, and I had my deal that I wanted to get funded because there's a few documents that you should already walk into there with. You should already have a budget for your deal. So, I got with a general contractor. We put together a budget. Of course, you need to have a deal identified, you know, so a property address, a purchase price on the land, a construction budget. So, now you could go into there with the numbers so you could request the loan amount. So, I was requesting a loan amount of about what a million $1.2 million. So, I went into the bank and I was requesting a loan amount of $1.2 million cuz I wanted to buy my lot for $400,000 and I was going to need another $800,000 to build the construction. So, this is back in 2022. I'm new into the construction space. I've never funded a deal with a bank at this. You know what's crazy? The bank that I funded my first deal with, I kind of got lucky in that situation, but that bank ended up getting bought by time I was ready to do more deals and then I had to start a new banking relationship. Kind of got lucky with the first one. So, I go into the bank and the market started getting funny around this time. You know anything about 2022, that's when the interest rate started hiking and new construction is considered a big risk for your big banks, you know? So, local banks is gonna be your best bet starting off if you don't have a prior relationship. But I go into one of these large banks pretty much requesting $1.2 million. I remember sitting down with the banker. I was about 24 at the time. I'm talking to him about all my wholesale deals. I'm talking to him about my fix and flip deals. I'm talking about my one development deal. But I'm going be honest, the bankers do not care about all the wholesale deals you did. They don't care about all the fix and flip deals. And if you did one development deal that might help you out a little bit, but you still looked at as a little guy or a little girl for, you know, whoever is watching this video, they care about your experience with the bank. Okay, so pretty much that banker looked at me and told me, "Fuck off." You know, like that's just, you know, plain plain and simple. You know, we had a conversation. You know, he saw that I did not really have experience getting loans from the bank. You know, up until that point, I got one loan from the bank and all my other deals were funded through hard money lenders with my fix and flips. So, that's not something that they could really track. So, he let me know in order for me to get that loan, I had to put down 30% on that deal. So, if you take 1.2 2 million and multiply by 30%. He wanted me to put down nearly $400,000, $360,000 to do that deal, which at that point I did not have $360,000 to risk on one real estate deal, you know. So, at the end of the day, you know, the banker may not be your best bet. I just started off in business not too long ago. So even my two years tax returns that didn't even look, you know, up to par for the bank. So when it comes to dealing with the bank, it might not work for you. If you now, if you're like a business owner and you got multiple years of tax returns, you're showing profit, and you have relationships, then you can go straight to the bank. I got clients that get funded straight through the bank on their first real. But if you don't have that experience, the bank may not be your best option. So with the bank, a bank is what we call a conventional lender. What does that mean? They're more worried about you. They're going to do the background check. They're going to do the credit check. They're going to do the two-year return check. They're going to also check if you even got experience, you know, and pretty much they trying to make sure they're covered, and they're trying to find a reason to tell you no. Okay, so that's cut plain and si simple with the bank.
Now, a hard money lender is a assetbased lender. Okay, so what does that mean? The hard money lender is looking at the performance of the deal. All right, I'mma write this on the on the board for y'all. So, a hard money lender is asset. I spelled asset correctly. Yeah, as s. >> Yeah, that's right. All right, cool. So, hard money lender is a assetbased lender. So, that means they are looking at if the deal pencils more than they're looking at you. Now, yes, of course, you know, they're going to look at you, they may ask your experience, but it's nowhere near as strenuous as the process with a bank. So, if you don't really have all of the tax returns, if you don't really have all of the prior relationships with a bank, if you just don't have all these things set up that a bank require, hard money lender is going to be your best bet starting off. Now, that's not to say you don't start getting things together for the bank because you're going to get a lesser interest rate with the bank. But again, I'm not going to tell you sit here and wait a year or wait two years before you get into development, before you get into building, because you could do it right now with a hard money lender. With a hard money lender, they're looking at does this deal work? Does it make sense? Okay. So, normally when it comes to a hard money lender, how that process goes. So, I'mma bring it back to that deal that I needed $1.2 million for. I went to my hard money lender and he saw that I was purchasing the lot for $400,000, but they had comps showing that the asset that I would build on it was worth $2 million. So, if we take $2 million and multiply that times 20%, what number that that do we get? We get $400,000. So that's where we get the numbers of buying the the lot between because I know that a hard money lender is going to fund about 70% of that value. So if we take $2 million and multiply it times 70%. A hard money lender will fund up to $1.4 million on that deal. Okay? And how do you figure that out? You get with a hard money lender and ask them. They're going to tell you we fund up to 70% of value. Okay? The banks say that they fund a certain percentage, too. But again, they're going to do the conventional check on you. So, does that mean I got a $1.4 million loan for this deal? No. Because at the end of the day, they are going to look at your experience and they're going to determine, hey, I still want him to put down a down payment. I still want him to have some skin in the game. Okay? So, skin in the game is a term in real estate which pretty much means you need to put your money where your mouth is. So, I went to a hard money lender after pretty much getting told to [ __ ] off by the bank. Went to the hard money lender. He looked at the deal. He saw that the comps lined up. He saw that my budget lined up with his numbers. And he ended up giving me a deal for about $1.1 million somewhere like a little bit less like $1,80,000. So, that means I had to come up with about a hundred,000 $120,000 for that deal. Okay. Now, did I have 120,000 at the time? Yes, I could have put that into the deal, but you can also leverage business credit cards, you know. So, if you don't have $120,000, you can leverage business funding to uh to close that gap, you know. So, in my situation, I took about 60 grand out of my own pocket and then I leveraged some of my business funding to cover that gap. And this is how I got into that deal. Okay. So, I bought the deal for $400,000, spent about 1.2 million and some change on the construction. When it was all said and done, I sold it for 1.970 million. And after fees and everything, I ended up netting $528,000 on that deal. So, imagine if the bank turning me around made me stop right there. Imagine if I didn't have access to a hard money lender or if I didn't know what a hard money lender was. that would have stopped me from making $528,000 net profit on one development deal. Okay? So, it doesn't matter, you know, if the bank's going to charge 8% on interest and the hard money limit is going to charge you 13%. If the deal pencils, the deal pencils like that small gap of 5% in interest should not be the determination if you're going to buy that deal or not. Okay? So, if you want to get your deals funded, I recommend you getting linked up with hard money lenders. Also, I recommend you obtaining some business funding. Some of the best credit cards that I like to use is a MX Platinum, Chase Sapphire card, Chase Freedom card, and a Chase Southwest card. There's plenty of credit cards, plenty of people that's helping with business funding. So, those two things will help you get into a deal pretty much immediately.
Step number three, and this one right here, man, this one is super important. I still think finding deals is the most important, but this one right here is running a close second. Management. So, you got to be able to find deals. You got to be able to fund deals. And you got to be able to manage them. I'm letting y'all know now, you can find a great deal, you can get it funded, but if you don't know what you're doing on the management side of the deal, you can lose all of that profit. Okay? So, managing the deal was pretty much putting like a general contractor in place, putting a project manager in place, having a team so you could build that house. Because I'm going to be honest, I've built over 45 houses and to this day, I have not gone on the ladder and swung a hammer and framed the house and actually built the house with my hands. Okay? What we do as business owners is we build the relationships to get the money. We build the skill set to find the deals, analyze the deals, and then we build the team so they could build the house. Okay.
So, I'mma just do like a little or chart of how my team currently looks. So, pretty much you got Abram at the top. So, how does my team look to manage 20 plus development projects that I maintain going? So, of course, at the top, it's me, Abram. What's my duties? My duties is to find deals, fund them, build team, and of course, I put out fires, you know. So, with my company, we do hold the license, so we could pull our own permits. If you don't have a license, then you know, you gonna have like a general contractor there. So I could put GC in parenthesis, but my company, we hold the license. Okay. So there's me and then whenever I want to build a house and I find a deal, I fund the deal, I get it permitted. Now I put it in my team's hands. So how that goes is I have multiple of these, but I got a PM, which is a project manager. Right now I'm running with two of them. So PM stands for project manager and then underneath these project managers. So pretty much what the project manager does is they oversee the entire project. So your project manager oversee. So depending on, you know, what you're trusting your project manager with, they may um oversee the budget. Of course, they're going to oversee the actual build, the quality of the build, and seeing that project through from A to Z. So, it's their job to put out fires. You know, you got to empower the project manager to and to help you, you know, because if I got 20 sites, I can't be running through all those sites. And of course, my project manager can't do it all by yourself, but with a team that supports them, we could do a lot with a lean team. So, project manager, they oversee the project. Um, I know the next question y'all are going to ask is how are they paid? My project managers are paid a salary and a bonus. Okay, so we got we got like a creative pay structure for our team, but salary and a bonus is what my project managers are paid on the projects that they're overseeing. Now underneath my project manager, we have a project coordinator. And the job of the project coordinator is to oversee scheduling, order delivery, and inspections. So project coordinator is helping with scheduling the subs, making sure that the subs are scheduled in advance. They're also, you know, helping with delivery on orders, you know, making sure things are delivered or getting it to the site because we do have we do have storage that we keep products in and whenever the project manager is ready for those to be on site, let the project coordinator know and they'll get that on site. And then also calling in inspections and checking the backend systems to make sure that we pass those inspections or if we failed, letting the project manager know what we got to do to get that passed. We also have a site supervisor. Site supervisor gets paid hourly. Site supervisor gets hourly pay. And pretty much the site supervisor is on site. Okay. Site supervisor is probably on site the most. And pretty much what they're doing is making sure people are there, making sure the site is clean, and they're taking pictures of the site constantly, and they're letting the project manager know what's going on on site on the dayto-day basis. Yes, the project manager is on site pretty much every day also, but the site supervisor is on site even more and they're running between multiple projects. So, right now I got projects like we got streets with three projects on that same street. So, we'll have a site supervisor um let's say all right, we got three projects on the same street. We got like five projects in that neighborhood. We have one site supervisor that's assigned to that neighborhood. Now, let's say we got uh projects, which we do. We got projects that's 25 minutes across town. We're gonna have another site supervisor that's accompanying the project manager across town. This is why I have two project managers because I have sites on the east side of town and I have sites on the west side of town and I like to keep my team that's managing those projects kind of in the, you know, around that site. Now, the project coordinator works virtually, you know, pretty much 80% of the time. Project coordinator works virtually, but site supervisor and project manager, they're pretty much working in unison on the sites that they're assigned. Now, the site supervisor is overseeing the actual job site, making, you know, another extension of making sure orders get there. They're taking pictures of the actual job site and they're uploading it to our system that we use called Builder Trend. We use builder trend and with this system we could upload pictures, we could upload comments. My team could communicate with each other. We could pay our subcontractors out this system. We could budget our projects and pretty much we have this large database of all of our projects which the data is super important because it allows us to get better project to project. Now underneath all this because this is my core team, we have subs. Subs. So pretty much we have carpenters, we have framers, we have excavation, foundation, HVAC, electrical, plumbing, painting, brickmasons, you know, interior trim, you know, all of our carpenters, not all of our carpenters, all of our subcontractors that actually build the house. Okay? So, of course, you know, my subcontractors don't work directly for me. My team works directly for me and they manage this group of subs that builds our houses for us and get us the product that we want. Okay, so at the end of the day, you know, in order to build at scale, you're going to need a team. Like this is the most important thing that I built because when I first started building, I did not have a team. So back in 2021, 2022 when I had five, seven, eight projects going on at once. Yes, I had a general contractor, but you know, I wasn't paying them as much money to also have a team that was doing everything, too. So, you get what you pay for in that in that essence. But that was a great general contractor I worked with. But what I noticed is that I felt the need to run job site to job site to job site to job site to job site. And it was like driving me crazy because I was still running my wholesale business and I wasn't present in that business while I was trying to build this construction business. And I it was crazy, you know, a lot of things was getting missed, budgets was getting missed, timelines was getting missed, a lot of things was getting missed because I was pretty much managing everything and we were not efficient. Okay. Now, it was important for me to learn these things so I could bring on a team. But again, you know, you get to the point where you hire a players. You hire people that are better than you at what you do. You don't really have to build everybody from scratch. You don't have to build everybody from the bottom. So, with my team, I hired people that already had experience. A lot of people on my team have more experience than me in the new construction industry, you know? So, when I looked up and realized, man, I can't go on a vacation. I can't enjoy myself. I can't even build something outside of this because I'm so tied down to my projects. That's when I locked in and built the team. And now just recently I was stuck in Dubai for like two weeks and nothing changed. If anything, if I'm not here, things run even better, you know, cuz sometimes you just getting your team wet. But now I have a team that manages these projects and this one right here is probably one of the most important phases. Like I said, finding deals is always gonna be that superpower that I would pick, but managing projects is going to be a close second because in 2026, there's no excuse for not managing your projects efficiently. It's too many things that could make a project unprofitable. So, you want to be dialed in on your budgets. You want to be dialed in on your timelines. And most importantly, you want to be dialed in on the efficiency of that home. Y'all, we are in a buyer market. Okay? Right now, I got over 10 houses that we're selling. Some of them under contract that's closing. Some of them we just closed a few out not too long ago. But again, what I'm seeing is we're in a buyer market. Buyers are asking for things that they did not ask for in 2020 because when you list a house in 2020, you got 10 different offers. Now, you get one offer, maybe a backup, but at the end of the day, you want to make that buyer happy so you can make it to closing. And one of the most important things you could do is have a solid team that could communicate whenever you're doing inspections and whatnot. But also, whenever they move into that property, it's nice. The quality of finish is nice. The quality of the work is nice. Okay.
So, that's the three topics that I wanted to teach y'all today. This is how you could become a successful builder in 2026. Finding deals, funding deals, and managing the project. So, that's what I wanted to lean on today with y'all. you know those three topics, finding deals, funding deals, and managing the project. This is how and the only way to become a successful builder in 2026. I've done this numerous and dozens of times, y'all. So, we have numerous numerous case studies to show why those are the three things that you need to learn in order to be successful in this. There's actual fourth step, which is exiting the deal. But again, we ain't going to get too far down the line. Most important thing is find a deal, find a deal, and manage a deal so you could get a good exit. And again, if you found any value out of this video, please just like, subscribe, share, comment, share it with a friend. I'm gonna be dropping a lot more organic content and just really reaching into my database of all my experience over hundreds of deals that I've done, multiple hundreds of deals, and sharing it with you all. So, if you got value out of that, y'all stay close, and I'll see y'all again on the next video. Peace.